Bitcoin's market dominance (BTC.D) reached a four-year high (66%) in mid-June this year, but has been continuously declining recently. Today, it fell below 60%, creating a six-month low, dropping to 59.97% before the deadline, sliding over 3% in a week.
This breakdown of a key level indicates that funds are beginning to seek higher Beta target markets, and more voices are viewing this as the starting point of Altcoin fund rotation.
TOTAL2, TOTAL3 Surge
Notably, the total market cap excluding Bitcoin (TOTAL2) jumped 11.94% in a week, currently reaching $1.56 trillion; the total market cap excluding Bitcoin and Ethereum (TOTAL3) also increased by 8.58%, breaking $1 trillion. This shows that while funds are leaving Bitcoin, they are quickly entering other cryptocurrencies, and the continuous net inflow of stablecoins into exchanges provides "ammunition" for Altcoins to attack.
Opportunities and Risks Coexist: Investors Need Cautious Deployment
However, despite Bitcoin still oscillating at high points, I still want to remind investors that if BTC experiences a significant pullback, Altcoins will likely decline even more severely.
When sensing an unfavorable market atmosphere, be careful of "pullback risks brought by high volatility" and avoid blindly chasing highs. Moderate diversification, setting take-profit and stop-loss points, and dynamically adjusting positions remain necessary methods for navigating volatility.
