In a bull market, the positive linkage between related cryptocurrencies is usually strong and stable as overall market sentiment is positive. In a bear market, the linkage may also be strong but in a downward direction. In a sideways market, the linkage may be weaker as individual project news has more impact. Investors can identify groups of correlated cryptocurrencies and allocate funds across them. For example, if investing in DeFi tokens, they can spread their investment among different DeFi projects. By doing so, if one project underperforms, others may offset the losses, while in a favorable market, all can contribute to returns.