Crypto investors are getting weary. It’s been close to 3 years since the last bull run. Yet, there’s no sign of the next one beginning soon. Or is there?
Today, we’ll explore 3 things that every bull run has in common. For this, you’ll need to pay close attention! So, when these signs arrive, you’ll recognize them and you’ll know what to do. Then, you won’t miss out on the huge gains the crypto market will bring you.
To understand these 3 signs, we’ll be using a tweet below from CryptoGirlNova. Without further ado, let’s get straight to Sign #1.
𝙃𝙚𝙧𝙚'𝙨 𝙬𝙝𝙖𝙩 𝙝𝙞𝙨𝙩𝙤𝙧𝙞𝙘𝙖𝙡𝙡𝙮 𝙝𝙖𝙥𝙥𝙚𝙣𝙨 𝙚𝙖𝙘𝙝 𝙗𝙪𝙡𝙡 𝙘𝙮𝙘𝙡𝙚.
If we look up the data from the past, every cycle has certain things in common.
Call it a text book where a series of events happen over and over again in the same order.
1️⃣ BTC runs… pic.twitter.com/RyBLWEsHCv
— Crypto Nova (@CryptoGirlNova) October 2, 2023
Sign #1 – The Price of $BTC Pumps
For each and every bull run, Bitcoin’s price has always been the trigger. And for good reason. Firstly, Bitcoin is the first ever crypto created. Secondly, it’s also the highest market cap crypto ever. Its market cap has never been surpassed. Lastly, it’s the most popular crypto. Many people in this world know what Bitcoin is. In comparison, not many have heard of Ethereum, Litecoin, and other altcoins.
Hence, when $BTC pumps, new money is entering the market. Money from people that don’t know anything about altcoins. It’s natural for a person who doesn’t know anything about crypto to buy $BTC first. That’s likely the same case for yourself when you started investing in crypto too, isn’t it?
Now, many retail investors have made money with $BTC. Where should they invest their gains? To answer this, let’s look at Sign #2.
Sign #2 – The Prices of $ETH and Other High Market Cap Altcoins Pump
Ethereum is the undisputed king of altcoins. For more than 6 years, it sits comfortably at the #2 market cap position. Usually, $ETH’s price will start to move after $BTC’s price skyrockets. Why is that so? One, investors that missed out on $BTC’s run will look for the next best alternative. In this case, it’s clearly $ETH. Two, investors who’ve made their buck on $BTC would look to re-invest their gains. $ETH would be a great option for them.
The above cycle then repeats itself in quick succession. Soon, more high market cap alts like $BNB, $XRP, and $ADA also pump. Retail investors, without much research, are making 5x or even 10x on these. So, what happens next?
Sign #3 – Mid and Low Market Cap Altcoins Pump
Over here is where the real gains are made. In your Mid and Low-Cap altcoins. It is these altcoins that give you 50x, 100x, or even 1,000x returns. Think about it. $BTC, $ETH, and high-cap coins are already worth billions. With that, it would take billions as well to move their prices.
But what about mid or low-caps? These are worth anywhere below USD$1 billion in market cap. And, they’ll take much lesser inflows of capital to pump the price.
Now, couple this with the dwindling demand of $BTC, $ETH, and other high-cap coins. Early investors have made their gains, and those who missed out aren’t interested anymore. Where’s the money flowing to next? You guessed it. Mid and low-cap coins. By this time, if you’re not invested in QUALITY altcoins, you’re too late. You have already missed the sweetest part of the bull run.
What You Should Do to Prepare for the Bull Run
All right! I hope you’ve got a nice idea of how capital flows within the crypto markets during a bull run. If you haven’t, the picture below sums it up nicely.
So, what exactly should we do to maximize our gains in the bull run? Let’s break it down step-by-step.
- Before $BTC pumps, allocate a certain portion of your portfolio to $BTC.
- After Sign #1 shows, move your gains into $ETH and other QUALITY, high-cap altcoins.
- Once Sign #2 reveals itself, move your gains from high-cap altcoins to QUALITY mid and low-cap altcoins.
- Sign #3 should appear shortly. You’ll be feeling good about yourself. But do not forget to take profits! That’s the most important step! Move your gains to stables or fiat, and treat yourself!
Voila! Although it’s only 4 steps, it isn’t really as simple as it seems. No one will really know how long the bull run will last. Throughout the run, emotions like FOMO or greed will likely overwhelm you. Stick to your profit-taking strategy instead of your emotions, and you’ll be laughing on the way to the bank.
Before we end this article, if you’re interested in how to maximize your gains, check out AltcoinBuzz Alpha below! We can help you to identify QUALITY altcoins, to improve your gains for the next bull run. So, what’re you waiting for? Click in to find out more!
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
