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In the Crypto Assets market, investors generally anticipate the arrival of the so-called "alt season." However, the launch mechanism of the altcoin market is often shrouded in mystery, and few can clearly articulate the logic behind it. Let us delve into the driving factors behind this phenomenon.
First of all, the opening of the alts market is inseparable from the leading rise of Ethereum (ETH). As a standout among alts, ETH needs to break through first, and after reaching a certain height, it will enter a sideways consolidation phase together with Bitcoin (BTC). This process lays the foundation for the subsequent market.
Subsequently, the market's main capital began to position itself in mainstream alts. It is worth noting that the forces controlling BTC, ETH, and mainstream alts are often the same group of capital. They have the ability to stabilize the market and inject liquidity into altcoins.
When mainstream alts strengthen, other niche projects may believe the timing is ripe and join the rally. This chain reaction could ultimately lead to the phenomenon of "a thousand coins soaring together."
The logic behind this series of actions can be summarized as:
1. As a leader, ETH's trend directly affects the possibility of an alt season.
2. Large funds are coordinating operations between BTC, ETH, and mainstream alts.
3. Secondary altcoin projects rely on the trends of mainstream coins to determine the timing of entry.
4. Top-tier investors understand the market ecology and maintain industry vitality by facilitating a general rise.
Although the arrival of the alt season seems inevitable, how to seize the opportunity still requires investors to make prudent judgments. Market volatility and uncertainty always exist, and investment decisions should be based on comprehensive analysis and rational judgment. While yearning for possible high returns, one must also fully recognize the high-risk characteristics of the crypto assets market.