Bitcoin is strongly attracting capital, has the altcoin season already passed?

Bitcoin has recently shown strong performance, not only attracting funds from altcoins but also starting to influence the performance of on-chain meme coins in the past few days. This "vampiric" market seems to have entered a self-reinforcing phase.

Market sentiment is clearly affected. Observing social media this morning, I found the overall atmosphere to be quite pessimistic. The nihilistic sentiment in the cryptocurrency market and the extreme voices around Bitcoin have become particularly loud. Some respected traders and industry veterans even lamented that "the altcoin season is over."

Based on historical data, the relationship between Bitcoin and altcoins can be summarized into four patterns:

1. Double Rise Mode: Bitcoin and alts rise simultaneously, which usually occurs during a bull market boom. At this time, Bitcoin's market cap share may fluctuate or decline. This is an opportune moment to go long, especially when alts outperform Bitcoin.

2. Double Dip Mode: Bitcoin and altcoins are both falling. This is a period to reduce risk, suitable for purchasing stablecoins and blue-chip tokens. Long-term holders may consider dollar-cost averaging or buying on dips.

3. Bitcoin falls while altcoins rise: This situation is relatively rare. When Bitcoin is experiencing a slight decline or consolidation, a brief altcoin season may occur. Investors may consider moderately increasing their risk exposure.

4. Bitcoin rises while altcoins fall: Bitcoin outperforms the overall market, with its market cap ratio continuously setting new highs. This situation is common before a halving cycle or at the beginning of a bull market. At this time, one might consider accumulating altcoins, waiting for a possible future breakout.

The market currently seems to be in the fourth mode. However, the duration and extent of the decoupling between Bitcoin and alts in this round far exceed historical precedents. Moreover, with the approval of the Bitcoin spot ETF, there are concerns that this may change the way investors allocate to crypto assets. A certain tech company's stock has recently become a hot topic in the US stock market, seemingly confirming that this concern is becoming a reality, making the "altcoin season conclusion" more compelling.

Nevertheless, as an optimist, I can still see signs of innovation in multiple areas. Fields such as on-chain abstraction, payment finance, Web3 AI agents, and the Bitcoin ecosystem are all experiencing rapid iterations and breakthrough innovations. In the meme coin and consumer chain sectors, we can also feel the potential for exponential growth. In this context, asserting that alts have reached a "dead end" seems somewhat exaggerated, more like an irrational emotional expression.

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

• On-chain abstraction infrastructure project
• On-chain Abstract Comprehensive Application Platform
• A 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 create a platform for AI agency asset issuance and technological inclusiveness.
• The Solana Layer 2 project successfully attracted one million followers on short video platforms.

Staying calm is the key to remaining undefeated in a turbulent market. A peaceful mindset can help us maintain our composure amid the waves of trading.