Surely you are all too familiar with this photo, right?

Have you guys ever been wondering what stage of the market we are at?

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Money flow in the Crypto market

Perhaps the below photo is one of the first photos we have encountered when entering this market.

Money flow in the Crypto market goes in the following order:

1. Bitcoin: 

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This is where the money flow comes first every time a new season begins.

The markets only go up slightly each time $BTC makes a move, and adjust sharply each time $BTC corrects.

There will still be glimmers of some coins that are going strong because of their fundamentals (also known as “coin trends”).

2. Ethereum: 

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This is the period when $ETH consistently outperforms $BTC in terms of performance.

The market increases, especially if $ETH grows significantly.

3. Other Altcoins: 

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My point of view is probably a little different from the picture, because in each season, there would be new generations of coins to replace the old ones, and no season is the same.

The top 20, 100 now would be very different from the top 20, 100 in the 2021 bull run and also very different from the 2017 season.

This is a group of coins that generate a lot of profit because of their drastic change in capitalization. The market would continuously see Altcoins hitting new highs in terms of capitalization or price during this time period.

Please try to catch this stage.

4. Micro cap coins: 

This is the period when the market is nearing its peak/or even has begun to correct.

At this time, some junk coins with no practical application / quitted projects / … would take the chance to grow. The specific term for this period is “Pump, Dump”.

The smart money flow is now almost exiting the market, leaving only speculative money to serve the purpose of pumping and dumping.

So in your opinion, what stage are we at?

Please look forward to P2 for more discussion in the current situation.