The turning point of the meme coin market in the era of BTC reaching a new all-time high

Bitcoin (BTC) is currently trading at $65,800, having previously reached a historic high of $126,080. In this market environment, many investors are concerned about a market correction, but at the same time, new opportunities are emerging. Of particular interest is how this period will impact altcoins.

Looking at historical patterns, the market trend after BTC reaches new highs has often created unique opportunities for altcoins. During BTC’s upward phases, conservative investors tend to move large amounts of capital into higher market cap altcoins, leading to a flow of funds into these assets.

The Correlation Between BTC Rises and the Altcoin Market

For example, with DOGE (Dogecoin), when BTC surged significantly from mid to late October and broke out of an 8-month sideways trend, DOGE also benefited and surged sharply. However, at that time, ETH (Ethereum) lost attention once BTC hit its first resistance level and did not become a major driver of the rally.

The current market situation differs from that time. The total market cap of altcoins has reached $351 billion, with several coins beginning to break through historic resistance levels. While concerns about a correction are widespread among market participants, expectations for a new growth phase are also rising.

ETH and DOGE: Different Growth Trajectories

Recent data shows that ETH’s 7-day change over the past few days is -2.05%, indicating some downward pressure. Meanwhile, DOGE has declined by 6.52% over the same period, showing greater volatility.

Despite these fluctuations, DOGE continues to attract market attention. Several factors contribute to this. Many addresses have realized profits exceeding $3 million, and market sentiment remains complex.

The Musk Effect and the Rise of Meme Coins

The sustained support for DOGE and Elon Musk’s growing political influence have undoubtedly played a significant role in shaping DOGE’s price. After election results were confirmed, large holders of DOGE have collectively realized profits exceeding $800 million, which has accelerated the price increase through psychological effects.

At the same time, the entire meme coin sector is outperforming altcoins. Meme coin-related assets are emerging as key growth drivers, forming a new trend that differs from traditional market cap rankings.

The Future of the Altcoin Market: Correction or Further Rise?

Next week’s market movements will depend on multiple variables. Current observations suggest that meme coins continue to attract investor interest and are showing different behavior from traditional altcoins.

If BTC’s price remains stable or continues to rise, based on market cycle theories, there could be an accelerated shift of funds from conservative investors to higher-growth altcoins. Conversely, if a correction occurs, asset selection within the market may become more selective, with increased interest in fundamentally strong altcoins, especially projects with real utility beyond meme coins.

Currently, the altcoin market faces a critical juncture, and both participant judgment and macroeconomic factors will play crucial roles in future price movements.