BTC pumps first, altcoins follow.
That was the play in the previous cycle.
But some believe this won’t happen this time as BTC’s positioning has changed:
• Inflows into BTC ETFs won’t spill over to other assets (AUM reached $80B)
• Governments buying BTC as a reserve asset don’t affect alts
• Institutions prefer “digital gold” store of value in an inflationary and unstable macro world.
Still, I don’t buy the theory.
Personally, if BTC continues to pump and ETH/BTC dumps, at some price ETH will look dirty cheap and I will rotate at least part of BTC gains to it.
I believe others will do it too.
Certainly, the percentage upside for ETH may be smaller than in previous cycles, but I’m betting on the old-good capital rotation cycle.
The question is: which assets will benefit the most from this?
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