@tessraglan
Capital rotation into altcoins often follows strong BTC rallies, as investors seek higher returns. Signs include declining BTC dominance, rising altcoin trading volume, and inflows into DeFi and L2 ecosystems. This transition, known as “alt season,” typically occurs when market confidence strengthens and retail participation grows. However, not all altcoins benefit equally—funds often concentrate in narrative-driven sectors like AI tokens, gaming, or meme coins. Observing cross-chain liquidity and relative strength helps confirm rotation phases.