I often come across such questions, and in fact the reasons are quite obvious. Here are some key factors that explain this phenomenon:
1. Bitcoin is a leading cryptocurrency with huge support. It is the first and most famous cryptocurrency in the world with a strong community, support from top investors and tools like spot ETFs.
2. Market dominance. Bitcoin's share is currently around 60%. Add Ethereum and stablecoins to that, and you get 80% of the entire cryptocurrency market cap, which is currently $2.32 trillion. That means all altcoins only account for around $500 billion.
3. Capitalization. When looking at any altcoin, it is worth considering its capitalization and how much money it will take to grow significantly (for example, 2-3 times).
4. Inflation and availability of coins. Bitcoin has low inflation - with each halving, there are fewer coins on the market. At the same time, many altcoins can be staked, increasing the number of coins available for purchase and reducing their price.
5. Unlocking of coins: Most altcoins have unlocking periods, where previously locked coins at low prices enter the market - this can put pressure on the price.
For these reasons, the main funds are primarily directed to Bitcoin. And only when some investors take profits, capital can start flowing into Ethereum, the top 20 altcoins, and beyond. Of course, there are exceptions when a specific project attracts the attention of large investors, but this is rather rare. (Memcoins do not count - they only need a small capitalization for a sharp increase.)
Conclusion: for altcoins to grow, you need to wait for the flow of funds from Bitcoin or the moment when large investors saturate their positions in BTC and switch to alts.
Stick to your strategy, stay HOLD and don't give in to FOMO!
It would be interesting to know your opinion - share it in the comments!
#BTC☀ #BTC🔥🔥🔥🔥🔥 #Bitcoin #CryptoMind
