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Bitcoin, being the largest cryptocurrency by market capitalization, sets the tone for the entire market. It acts as a leader around which other cryptocurrencies, known as altcoins, revolve. As Bitcoin gains value, entities with large Bitcoin holdings, or whales, often diversify their investments, transferring some of their Bitcoin gains into altcoins for potentially larger returns.
The timing of this rotation is critical. While Bitcoin tends to see significant gains at the bull market's onset, altcoins often experience the most substantial price increases later in the bull market cycle. As new investors become attracted to the soaring prices of altcoins, they tend to ignore Bitcoin, leading to a broader focus on emerging cryptocurrencies with lower price tags.