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The vampire effect of Bitcoin intensifies, sparking controversy over the conclusion that the era of alts has come to an end.
Bitcoin has recently shown a strong siphoning effect, not only drawing funds from other Crypto Assets but also starting to influence the performance of popular on-chain Tokens in the past few days.
Market sentiment has clearly turned pessimistic, with social media filled with doubts about the future of Crypto Assets and voices of Bitcoin extremists. Some well-known traders and industry veterans even claim that "the era of altcoins is over."
According to historical data analysis, there are four main interaction patterns between Bitcoin and other Crypto Assets:
Dual Rise Model: Bitcoin and other coins rise simultaneously, usually occurring during a bull market boom. This is a suitable time for going long, especially when other coins perform better than Bitcoin.
Double Drop Mode: Bitcoin and other coins are falling simultaneously. This is a good time to reduce risk, and you may consider buying stablecoins or blue-chip tokens. Long-term investors can consider buying on dips or using a dollar-cost averaging strategy.
Bitcoin falls while others rise: This situation is relatively rare and may indicate a short-term altcoin market. If Bitcoin does not experience a significant decline, it may be worth considering increasing investments in other coins.
Bitcoin rises while others fall: Bitcoin's performance outpaces the overall market, with its market capitalization continually increasing. This situation usually occurs before a halving cycle or at the beginning of a bull market, and it may be worth considering accumulating other coins during this phase in anticipation of future surges.
The market currently seems to be in the fourth mode, but compared to history, this time the decoupling of Bitcoin from other coins is far greater in degree and duration than ever before.
The launch of spot ETFs has raised concerns in the market about changes in capital allocation patterns. A certain tech company's stock has become a popular trading target in the US stock market, seemingly confirming that this concern is becoming a reality, making the "end of the altcoin era" argument more persuasive.
However, as optimists, we can still see rapidly developing innovations in various fields, such as on-chain abstraction, payment finance, Web3 AI agents, and the Bitcoin ecosystem. In the popular Token and consumer chain sectors, we can also sense the potential for exponential growth. Therefore, to claim the "historical end" of altcoins at this time may be overly emotional.
If the current market makes you feel anxious, you might want to pay attention to the following actively developing projects:
Maintaining inner peace is the key to staying stable amid market fluctuations. A calm mind will help us make wise decisions in the ups and downs of the crypto assets market.