Bitcoin has maintained its leadership in the cryptocurrency market since its launch in 2009. However, before each altcoin cycle, there is a trend of capital rotation from Bitcoin to altcoins.
Bitcoin's Dominance History
Since its inception, Bitcoin has occupied a central role in the cryptocurrency ecosystem. Its leading position has historically defined the events happening in the market. However, with the onset of each new altcoin cycle, there is a tendency for capital to switch from Bitcoin to other cryptocurrencies.
Key Altcoins in Focus
Among the altcoins that may benefit from this shift are three projects: Solana ($SOL), Chainlink ($LINK), and Hyperliquid ($HYPE). These cryptocurrencies have growth potential due to new investments moving away from Bitcoin.
Reasons for Fund Rotation
The rotation of funds from Bitcoin to altcoins often precedes the beginning of a new alt season. This occurs for various reasons, including investors seeking higher returns, unique features of altcoins, and their applications in various decentralized finance solutions.
With Bitcoin's dominance on the cryptocurrency market still intact, it is important to monitor the rotation of funds into altcoins like Solana, Chainlink, and Hyperliquid. These projects could play a crucial role in future market trends.
