The cryptocurrency market is at a critical moment, and we may soon see a large-scale altcoin rally. This widespread increase is often accompanied by a significant influx of off-exchange funds. Observations indicate that some sharp investors have begun to position themselves in altcoins, anticipating that the strong performance of Ethereum (ETH) will attract more traditional investors into the market, thereby enhancing the liquidity of the entire encryption ecosystem.

In the field of encryption, there are many high-quality projects with stable cash flow. When compared to the traditional stock market, their valuations may have a significant premium. In this round of bull market, it is expected that more high-quality encryption projects will connect with the traditional financial market in various ways to obtain broader liquidity support.

Looking at the development history of cryptocurrencies, whenever the market generally believes that "this time is different, only Bitcoin is valuable," it is often a signal for altcoins to start surging. Historical data shows that when Bitcoin's market cap reaches about 70%, it is usually pulled back to around 40% by altcoins within the following six months.

For investors considering investing in altcoins, it is recommended to pay attention to the following points: 1. Choose projects that have undergone at least one round of market cycle testing; 2. Focus on projects with mature business models that can generate stable cash flow and are still growing; 3. Invest in projects whose products you can understand and actually use.

Currently, Bitcoin's market capitalization share has dropped from a high of 65% to 58%, mainly due to the strong performance of Ethereum. However, the real altcoin season may just be beginning. It is expected that at the peak of this bull market, Bitcoin's market capitalization share could further decline to around 40%.

Investors need not panic excessively; market trends often repeat themselves. Maintaining rational observation and timely adjustment of strategies is essential to seize opportunities in this market filled with both prospects and challenges.