Looking at recent market trends, a very obvious phenomenon can be observed: mainstream coins are rebounding, but small-cap tokens are weakening. The underlying logic is quite straightforward— the market has fallen into a battle for existing capital.

What does a real bull market look like? It’s a situation of comprehensive upward movement, where even projects of average quality can rise together with the market. But the current situation is different: BTC and ETH are attracting funds, while altcoins are gradually being marginalized. What does this indicate? The new incremental capital has not yet entered on a large scale; right now, it’s existing funds competing with each other.

The total amount of capital is limited. When large sums flow into leading coins like BTC and ETH, the money flowing into other projects gets diluted. The situation for altcoins becomes quite awkward—not that there are no opportunities, but that opportunities are becoming increasingly scarce. In this environment, chasing altcoins carries a high risk—basically, it’s like probing in a high-risk zone. Unless you can get ahead of the projects favored by big funds, your chances of success are quite low.

The lesson at this stage is: the market is still digesting existing capital, and a true broad rally will have to wait for the arrival of new incremental funds.