The Crypto Cycle: What Whales Don't Want You to Know (Jul.30)

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In this analysis, we dissect the cryptocurrency cycle. Understanding where capital flows will help traders capitalize on every opportunity they spot.

In our previous analysis, we have explained the relationship between Bitcoin and Bitcoin dominance, in order to explain the idea of relative market capitalization and capital flow.
We dissect this further into classifying altcoins by the size of their market cap.
The examples of altcoins stated above are merely for reference purposes, and are not financial advice.

Analysis

- Starting with Fiat (or Tether), money flows into Bitcoin.
- As Bitcoin rallies on its own, it marks the beginning of a small cycle.
- Whales drive the fiat value of Bitcoin up to a certain level, where Bitcoin then rallies sideways while Bitcoin dominance starts dropping
- This signals the inflow of capital from Bitcoin to Large Cap Altcoins
- The goal of whales driving this cycle is to accumulate as much satoshi profits as possible.
- In other words, it's important that they accumulate more Bitcoin as the end goal, by driving Altcoin prices up, relative to Bitcoin
- Once the Large Cap Altcoins rally to a certain point, capital flows again down to Mid Cap Altcoins
- The same process is repeated until every last satoshi is squeezed out of the Small Cap Alts, which can easily drive tenfold gains within days.
- All satoshi profits generated from this cycle is then converted back to fiat or kept in Bitcoin, depending on market conditions.

What We Believe

Understanding where money flows within the cryptocurrency ecosystem is an absolute necessity. It's important that traders understand not only the market cycle but also how whales think, in order to capitalize on every opportunity they have.

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