The cryptocurrency market has experienced a significant shift in recent times, characterized by increased volatility. According to analyst Crypto Cred, this change can be attributed to four major factors: the explosion of new coins, the increasing competition from other assets such as AI, semiconductors, and commodities, the growing participation of institutions through ETFs and professional trading firms, and the spreading of retail liquidity across various exchanges.
Crypto Cred notes that these changes have fundamentally altered the market dynamics. In previous cycles, a broad market exposure was often rewarded due to strong momentum lifting nearly all assets during extended altseasons. However, in the current cycle, selecting the right assets has become crucial for returns.