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The Crypto Money Flow: From Bitcoin to Micro Caps!
- Large Caps: Once Bitcoin has gained momentum and begins stabilizing or showing signs of slower growth, some investors start reallocating profits from BTC into large-cap altcoins (e.g., Ethereum, BNB, Solana).
- Mid Caps: After large caps have made significant gains, attention turns to mid-cap cryptocurrencies. These assets generally offer higher risk and potentially higher reward than large caps, and the capital flowing into them often drives notable price increases as investors chase higher returns.
- Low Caps: As the market becomes more speculative and capital trickles down, investors seek out low-cap cryptocurrencies. These smaller, lesser-known projects can experience substantial gains because their market caps are smaller, so even relatively modest investments can drive their prices up significantly.
- Micro Caps: Finally, towards the peak of the cycle, money flows into micro-cap projects, which are the riskiest and most volatile. Investors who buy into these projects are typically looking for exponential gains, but these projects often have low liquidity and high volatility, meaning the risk of losses is also much higher.
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