Bitcoin Returns to $90,000, Altcoin Market Poised for Action

Recently, Bitcoin has once again broken through the 90,000 USD mark, driven by multiple factors. On one hand, as tariff issues become clearer, market sentiment has been boosted. On the other hand, expectations of interest rate cuts by the Federal Reserve have increased, leading to a certain distrust in the US dollar, which indirectly promoted the rise of Bitcoin and other crypto assets.

It is worth noting that Bitcoin has recently exhibited certain safe-haven properties, showing a high correlation with gold. At the same time, with the rebound of US stocks, Bitcoin has also benefited from the liquidity overflow, with an increase of 12% in the past seven days.

However, in this round of Bitcoin's surge, alts have not fully followed suit. Currently, Bitcoin's market share has reached 64.2%, hitting a four-year high. Although alts have underperformed overall, there are still some coins that have performed excellently, which are worth investors' attention.

Outstanding Altcoin Types

Among the top 100 tokens by market capitalization, the coins that have increased more than Bitcoin in the past seven days are mainly concentrated in the following tracks:

1. Artificial Intelligence (AI)
2. Public Chain (L1)
3. Meme coin
4. Decentralized Finance (DeFi)

AI track

The AI sector has experienced a relatively reasonable valuation after the earlier bubble burst. With the continuous development of Web2 AI technology, Web3 AI projects are expected to gain more attention in the future. Some tokens worth noting include VIRTUAL, ARC, ALCH, etc.

public chain track

Unlike in 2021, investors are more inclined to focus on public chain projects that can truly bring about technological innovation and application implementation. Some emerging public chains like Monad and MegaETH may become future hotspots.

meme coin

Meme coins, as carriers of culture and consensus, have become an undeniable presence in this bull market. The leading meme coins on various public chains can be seen as public chain coins with leverage effects.

DeFi track

The DeFi sector has real business models, such as transaction fees and interest income. Some leading DeFi projects like HYPE, JUP, AAVE, etc., not only hold important positions in their respective fields but also implement token buyback mechanisms, which are expected to benefit when liquidity improves.

Key Indicators for the Launch of the Altcoin Season

To determine whether the altcoin season has truly arrived, two key indicators need to be monitored:

1. Can Bitcoin stabilize above 90,000 dollars?
2. Has the market share of Bitcoin (BTC.D) started to decline significantly?

Currently, although Bitcoin has broken through $90,000, BTC.D has only slightly decreased by 0.2%, indicating that funds are still mainly concentrated in Bitcoin. If in the future BTC.D begins to decline significantly, for example, falling back to around 57%, it will signify that funds are officially spreading to the altcoin market, and a rotating market trend may follow.

In summary, a true altcoin season requires Bitcoin to continuously set new highs, while risk appetite rises and funds spread from Bitcoin to other thematic tracks. This is an important period for observation, screening, and layout, and investors should closely monitor the trend of BTC.D to prepare for the possible upcoming altcoin frenzy.