Bitcoin is often considered as the bellwether of the cryptocurrency market. When Bitcoin’s price rises, it sets a trend for other cryptocurrencies, such as Ethereum, midcaps, and eventually microcaps. However, after a period of growth, the market usually enters a downturn phase, with microcaps becoming the primary focus of investors. Over time, the market becomes stagnant, leading to the emergence of meme-based cryptocurrencies. This phase is often followed by a market downturn, which can lead to an increase in scams and fear amongst investors. Finally, the market experiences a final drop before it restarts the cycle again.
BTC pumps → ETH pumps → Alts pump → Midcaps pump → Market drops → Microcaps pump → Market gets boring → Memes pump → Market bleeds → Scams/fear → Final dump → Restart.