Why at this stage of the bull market, most altcoins do not run bitcoin

Since Bitcoin has been confirmed as a bull market, its price has hit a new high almost every few days. However, most of the competition coins and altcoins in the market have not beaten the BTC, which has caused some investors to have some doubts. anxiety.

David Puell, Principal Investigator at Adaptive Capital, said in a tweet:

"TM is tired of the dichotomy between hodler and trader. It seems that we are not the same team, just playing different roles…

1. In theory, Bitcoin needs the top of prosperity to signal to the public that it needs the bottom to increase the number of powerful market players that drive the next cycle forward. 2, the trader should thank the hodler for the supply restrictions and the bottom. 3, hodler should thank the trader for bringing liquidity and top.

Bitcoin valuation researcher Willy Woo replied: P4

“The Jedi Master Yoda: You must wake up, no trader, no HODLer, there are only investors. The traders you see are investing in the shortest time, and the HODLer you see is only a long-term investment. The means and strategy will vary from time to time."

In fact, the current stage of the bull market has been different from the previous bull market. According to the investment report released by the digital money fund Grayscale in June this year, the fund's investment in bitcoin has accounted for 47.6% of the total investment in 2018. It increased to 71.9% at the end of May this year, while the proportion of investment in other currencies such as Ethereum declined significantly. Obviously, the institutions involved in the investment are more optimistic about Bitcoin.


(Image courtesy of: grayscale June report )

Looking at the Google Trends Index, by searching for the "bitcoin" keywords in the US, we found that the public's attention to Bitcoin has not improved significantly. The current level is equivalent to 1/6 of the end of 2017. Some people may misunderstand that this is not the real bull market for Bitcoin?

P6 Well, this understanding is a big mistake.

Because the current rise of Bitcoin is unrelated to the general public, the fundamental reason is that institutional investors are increasing their holdings of BTC.

The reasons behind it seem to be the following:

  1. Due to the threat of war (including economic war), safe-haven assets have become the target of institutional investors, and BTC is also known as digital gold;
  2. The Bitcoin market has bottomed out under the influence of Hodler, and institutional traders believe that increasing investment in Bitcoin is a good business;
  3. Under the factors such as Facebook's issue of the currency and the upcoming Bakkt futures exchange, the trend of accelerating the development of digital assets is already very clear;
  4. In the market, there are only a handful of ponds that can accommodate institutions, and Bitcoin is the largest one, so institutions will inject the most funds.


(Cin'an CEO CZ is calling for the project side to do bitcoin bull market)

Well, this may also explain why bitcoin continues to rise and most of the altcoins are in place.

Of course, with the emergence of the femo phenomenon, retail investors will also choose to run into the market, and since Bitcoin has been pulled up by the agency to the sky-high price (the price is too much, it is necessary to make up the brain), retail investors are likely to be even more afraid. Participate in the investment in the pie, and therefore choose the lower-priced competitors or altcoins on the market.

Then, since you are already on the bus, don't worry anymore. If you are anxious, you should be those who haven't got on the bus yet.