Bitcoin’s current success will eventually lead to a shift in capital flow towards older altcoins, according to a video by a popular cryptocurrency YouTube channel. Bitcoin’s profits will flow into Ethereum first, causing its price to increase, followed by other large altcoins, leading to the start of the “alt season”. This could eventually lead to a surge in value for even smaller coins. The video emphasizes the importance of taking this shift into account when investing in cryptocurrency.
Bitcoin Is Having Its Time
Bitcoin is currently having its time in the limelight, with its price soaring high. People are investing in Bitcoin like never before, and the cryptocurrency is growing stronger each passing day. However, it is essential to note that this trend won’t go on forever, and eventually, the capital flow will shift from Bitcoin to other cryptocurrencies.
The Capital Flow Shift
When the gains from Bitcoin eventually subside, investors will start looking into other cryptocurrencies, such as ethereum. As more people start investing in ethereum, the price of the coin will rise, and it will create a ripple effect on the larger-cap cryptocurrencies as well. As a result, you’ll start to see an “altcoin season” where the other cryptocurrencies will witness a surge in demand and their prices will increase.
The Rise of Smaller Cap Cryptocurrencies
Once the capital flow shifts towards the larger-cap cryptocurrencies, it won’t take long for the not so popular micro-cap cryptocurrencies to also experience an explosive increase in value. All of this will happen in a relatively short period, and investors who have invested wisely will enjoy significant benefits.
Overall, while Bitcoin’s dominance in the cryptocurrency market is prevalent at the moment, investors must keep their eyes open to the altcoins they invest in. A wise move would be to invest in an array of cryptocurrencies, spreading out one’s capital to mitigate risks and reap the benefits of a cryptocurrency market surge. The future of cryptocurrency is full of potential, and investors need to stay alert to leverage the opportunities that lay ahead.