The Market Dominance of Bitcoin and the Future of Alts

At present, Bitcoin is in a self-reinforcing vampiric phase. This trend initially only affected other alts, but has recently begun to impact popular on-chain tokens.

Market sentiment seems to be deteriorating, with social media filled with voices of crypto nihilism and Bitcoin maximalism. Some respected traders and industry veterans have even begun to lament that "the altcoin season is over."

According to the historical data analysis of a certain data platform, there are four main patterns between Bitcoin and other cryptocurrencies:

1. Joint Rise: This usually occurs during the prosperous period of a bull market and is a good time to increase positions.

2. Joint decline: This is a time to reduce risks, suitable for purchasing stablecoins and blue-chip tokens.

3. Bitcoin falls while other coins rise: This situation is relatively rare and may indicate a short-term altcoin season.

4. Bitcoin rises while other coins fall: This pattern is common before Bitcoin halving or at the beginning of a bull market, and it is an opportunity to accumulate other altcoins.

The market currently seems to be in the fourth mode. However, this time the decoupling of Bitcoin from other coins has lasted longer and to a greater extent than historical precedents.

The approval of the Bitcoin spot ETF has raised concerns in the market about changes in capital allocation patterns. The stock of a large listed company has become a hot trading target in the US stock market, seemingly confirming this worry, making doubts about the altcoin season more convincing.

Nevertheless, as optimists in the crypto industry, we can still see rapid iterative innovations in several areas, such as chain abstraction, payment finance, Web3 AI agents, and the Bitcoin ecosystem. At the same time, we can also feel the potential for exponential growth in the fields of popular tokens and consumer chains. Therefore, it may be a bit premature to declare the "end of history" for alts.

If the current market makes you feel anxious and confused, you might want to pay attention to the following actively developing projects:

• Projects focused on chain abstraction infrastructure
• A platform that provides chain abstract applications
• New paradigm infrastructure from the Cosmos ecosystem
• Idealistic projects in the Bitcoin ecosystem
• Bitcoin Layer 2 solutions supported by large Bitcoin mining companies
• Collaborating with well-known venture capital to develop an AI agent asset issuance platform project
• A certain public chain second-layer solution that has successfully accumulated followers on short video platforms.

In this ever-changing market, it is crucial to remain calm and rational. A peaceful mindset is our best remedy for maintaining composure amid the trading storm.