Cryptocurrency sector rotation follows cycles driven by technological innovation, market sentiment, and regulatory shifts. Bitcoin often leads as a store of value, then altcoins rise with new narratives (e.g., Ethereum's smart contracts, DeFi's yield farming). Rotation occurs as investors chase higher returns in emerging sectors. To capitalize, monitor technical trends, project developments, and market narratives. Diversify across sectors but focus on those with strong fundamentals and growing adoption, balancing risk with potential upside in evolving crypto cycles.