"A bull market where everything rises together won't come"...'Altcoin' selection determines returns

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The reason the cryptocurrency market has become quiet is not because bullish catalysts have disappeared, but because the era where money was fragmented too finely and any coin could rise has ended.

According to the cryptocurrency media outlet Benzinga on May 27 (local time), as the volatility of Bitcoin (BTC), Ethereum (ETH), and XRP has fallen to its lowest level in several months, the market is increasingly reacting with “cryptocurrency feels dead.” Analyst Crypto Cred diagnosed on May 26 that the structure of the cryptocurrency market has fundamentally changed, and the trend where most assets rose together during a bull market, as in the past, has been broken.

Crypto Cred highlighted the proliferation of new coins, the collapse of token issuance barriers, speculative funds scattered across AI, semiconductors, tech stocks, raw materials, and 0DTE options, increased institutional and traditional financial participation through ETFs and professional trading firms, and the dispersion of retail investor liquidity as key drivers of market change. In past cycles, strong momentum continued for a long time, boosting major altcoins across the board, but now funds are scattered across numerous exchanges, memecoins, and niche ecosystems.

Santiment data also shows a shift in market sentiment. Santiment stated that bearish sentiment among cryptocurrency traders has strengthened over the past 10 days. However, the market has often moved contrary to crowd expectations, and it explained that as pessimism grows while individual investors maintain a cautious stance, conditions for a low-resistance rebound could form.

Crypto Cred emphasized that simply predicting Bitcoin's direction is no longer enough. He said, “In previous cycles, even if you got the market conditions right but chose the wrong asset, you still made money, just with lower returns. In the current cycle, if you get the conditions right but choose the wrong asset, you’ll get hit hard.” He defined the current market as a fragmented market with widening disparities in asset returns, explaining that asset selection has become a core variable for returns, not just a supplementary one.

Trader Decode also agreed with this trend. Decode pointed out that buying a heavily declined project with only the expectation that it will fully recover is risky. He said, “It’s dangerous to buy a heavily suppressed project and expect it to surge. Usually, such projects are already dead and are more likely not to return.” Amid sharp drops in volatility, the cryptocurrency market is shifting from a broad bull market to a selective market where only surviving leading assets attract money.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*