Alright, let's cut the crap. You may be reading altseason this, altseason that in the headlines. Now Bitcoin dominance is down, and all of a sudden everyone’s an altcoin millionaire. But hold your horses (and your USDT). Today, I’m going to warn you against doing just that – blindly chasing altcoins because Bitcoin dominance is on the rise is a recipe for disaster. Think of it like this: just because the sun is setting doesn't mean everything in the dark is gold. It might be a mound of canine feces.
Dominance Drop Guarantees Altseason?
Bitcoin dominance is a metric. It can indicate shifts in market sentiment. To delude yourself into believing a falling dominance guarantees that your random meme coin is going to 100x someday is wishful thinking at best. Just because the price of tea in China went down doesn’t mean your boutique coffee shop is going to be packed. Now, that connection is quite a stretch! The connection is tenuous at best.
In retrospect, a dip often foreshadowed upcoming altcoin rallies. Well, this just isn’t your grandpa’s crypto market any longer. We're talking about a vastly different landscape. More on that in a bit.
The arrival of Bitcoin ETFs as a general-purpose crypto investment vehicle is a total game-changer. This isn’t your typical retail investor picking up a bit of Dogecoin change on the side. These are endowments, institutions, pension funds, and family offices deploying long-term committed capital. And where's that capital going? Primarily to Bitcoin.
Institutional Money Flows Differently
Think of it like this: imagine a dam (Bitcoin) finally has a spillway (ETFs). Does that entail all the (capital) rainwater drowning everywhere at once. No. It means that the water—value—will rush through the spillway, potentially filling a much larger reservoir (Bitcoin itself). Most of that wealth will flow down to smaller streams, or altcoins. The rest will stay trapped behind the dam, further entrenching Bitcoin’s dominance. This isn’t a zero-sum game by any means but the scale of capital entering Bitcoin is hard to ignore.
Remember 2017? A handful of altcoins battling for attention. Now? It's a bloody free-for-all. Or maybe it’s because thousands upon thousands of projects are competing to catch your eye (and your dollar). The sheer overwhelming volume of altcoins makes it nearly impossible for there to be tremendous gains on all of them together.
It would be the same as opening a new pizza shop in a town that already has 50 pizza shops. Of course, some might taste your dough, but come on, are you going to be the next Domino’s? Unlikely. 2 – Income generation Most of these altcoins are going to flame out with the twin effects of failure leaving bagholders weeping. Because in reality, the altcoin market is a giant cemetery of projects that have failed and dreams that have died.
Market Is Saturated With Altcoins
Okay, Ethereum, XRP, Cardano, BNB, Litecoin. These are the “DINOs” – Dinosaurs In Name Only. They’re the known, large-cap alternatives to bitcoin that some crypto analysts believe will lead the charge during a future altseason.
Will they pump? Maybe. Will they 100x? Highly, highly unlikely. Their market caps are already massive. The actual amount of capital needed for them to grow like that is astronomical.
Imagine it like the difference between trying to push a loaded freight train uphill versus downhill. It requires extraordinary energy, inspiration, and sweat equity. Smaller, more nimble projects (assuming they’re done well) have a far better chance of building positive momentum.
Large Caps Won't Repeat 2017's Gains
AI, RWA (Real World Assets), DeFi – these are the terms that are having their day in the sun right now. Everybody’s jumping on board, trying to get in front of the next blue ocean strategy. As exciting as these sectors are, they’re filled with scams, overhyped projects, and unsustainable business models.
Don’t recklessly throw money at everything that has “AI” or “DeFi” slapped on it. Do your research. Understand the underlying technology. Assess the team. And, most importantly, understand the risks. It’s as if you were taking a bet on a gold mine entirely from shiny stones you picked up off the ground. In every case, you have to mine more than just the surface to determine whether there is true gold below.
Look, I'm not saying altcoins are dead. There are undoubtedly hidden gems out there. The idea that a drop in Bitcoin dominance automatically triggers an altseason where everything pumps is a dangerous myth.
Instead of chasing hype, focus on fundamentals. Understand the market dynamics. Manage your risk. And remember: patience is a virtue. Don’t let the fear of missing out (FOMO) trip you up and drive you into financial peril. The market is indeed fluid, and the ones willing to adapt and learn will forever be on top.
AI, RWA, DeFi Aren't Guaranteed Wins
Fact #5: Sectors Need Scrutiny, Not Blind Faith.
AI, RWA (Real World Assets), DeFi – these are the buzzwords of the moment. Everyone's piling in, hoping to catch the next big wave. And while these sectors do have potential, they're also rife with scams, overhyped projects, and unsustainable business models.
Don't just blindly throw money at anything with "AI" or "DeFi" in its name. Do your research. Understand the underlying technology. Assess the team. And, most importantly, understand the risks. It's like investing in a gold mine based solely on a shiny rock you found on the surface. You need to dig deeper to see if there's actually gold there.
So, What's Next?
Look, I'm not saying altcoins are dead. There are undoubtedly hidden gems out there. But the idea that a drop in Bitcoin dominance automatically triggers an altseason where everything pumps is a dangerous myth.
Instead of chasing hype, focus on fundamentals. Understand the market dynamics. Manage your risk. And remember: patience is a virtue. Don't let the fear of missing out (FOMO) cloud your judgment and lead you to financial ruin. The market is always changing, and those who adapt and learn will always be the winner.
