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How are you all? I hope these days are going well for all of you. I believe most of you are keeping an eye on the market at all times, especially if you're a trader. I myself trade too but it's mostly small time and haven't made many big trades or anything that had a big payout. Muslims are starting out and learning the ropes. So yes I have been in this space for more time than it usually takes a person to make a substantial trade but there's that. 

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![jakub-zerdzicki-puYe3yLXkv4-unsplash.jpg](https://files.peakd.com/file/peakd-hive/abrar-fahim/23tRxsu9zmvceMuTNdWxNvLX1v3GUi2fTq54kB96F5eS1vsu7C9VUowTq7fr6QLqotum5.jpg)
[Source](https://unsplash.com/photos/a-person-holding-a-coin-in-front-of-a-computer-keyboard-puYe3yLXkv4)

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So in this current bull market many of you have been wondering and I myself have also wondered for a long time that why is Bitcoin performing so well and not the other tokens. The altcoins aren't performing at the same level as Bitcoin is. So the much anticipated altseason isn't still upon us. But I had done some digging and I now have a probable explanation on why altcoins aren't performing the way they used to in previous bull markets.

So the short answer is there are more coins in the market than ever before. And if you want to elaborate, there are different points that we need to address. And the most obvious explanation is that usually the normal cycle is, first the money goes into Bitcoin then the money flows to the relatively bigger non Bitcoin currencies. And then finally it goes to altcoins or meme coins. But this time that hasn't happened. The money went from BTC straight to meme coins. That is because of two reasons. One is pump.fun. The meme coin generating website on the Solana chain. And the other is simply centralized exchanges making it harder for people to get in. Because now more and more exchanges require kyc. Which wasn't the case previously. That's why more liquidity is flowing to the decentralized exchanges which do not require kyc and away from the centralized exchanges with the relatively known altcoins. So the liquidity is there but liquidity isn't flowing to the right place. And obviously this mean coins have zero value but they do hold up the liquidity which might have flowed into the altcoins that you and I are looking at. And that is the single biggest reason for altcoins to underperform. 

And there are other reasons as to why altcoins are not performing. These are macro reasons which include the geopolitical side of things. Altcoins were booming when Trump won the election because it was expected that Trump's pro crypto regulations will help the crypto market thrive. But now that he's in office, The Proctor regulations are still yet to come by. So the confidence is at a low point which I previously talked about in my posture boarding the fear and greed index. So the money even though that is available isn't being made possible to be pushed into the altcoins. But there is a solution on the way I think. And I think that regulations that are sympathetic to the cryptocurrency are on the way and there is a trend line that I am seeing. But I still have to do a little more homework on it. After I have done that I will share it with you all. But at the same time I want to clarify again that these are simply my own thoughts and not any financial advice. I'm just a normal trader who wants to know the market more in order to make more.

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