The cryptocurrency market has recently shown clear signs of transformation, marking a critical period as we transition from the second phase to the third phase of the bull run cycle.

Ethereum ETFs attracted approximately $1.28 billion in net inflows over the past week, while Bitcoin ETFs continued experiencing outflows, totaling about $144 million. Although Bitcoin has seen a slight rebound recently, the overall trend indicates that funds are shifting towards other major encryption currencies.

This phenomenon is a typical characteristic of the market evolving from the second stage to the third stage: funds begin to rotate, and the market enters a period of fluctuation and differentiation. Bitcoin remains the benchmark of the market, but investors are seeking investment targets with higher growth potential.

Looking at the entire market cycle: the first phase is characterized by Bitcoin's absolute dominance, with capital highly concentrated; the second phase sees Ethereum and some leading altcoins becoming the focus; and if the interest rate cut expectations come true in September, the third phase of the altcoin market may be initiated, at which point market sentiment will sharply heat up, and volatility and investment opportunities will significantly increase.

For investment strategies, the current focus should not be on blindly chasing price increases, but rather on positioning in advance, patiently weathering the fluctuations caused by capital rotation, and waiting for the market to enter a true frenzy stage.

The sectors worth paying attention to can be divided into the following categories:

Large-cap altcoins: Chainlink, Ondo, Sui, Algorand
Mid-cap altcoins: Render, VeChain, Sei, Injective, Siacoin
Small-cap altcoins: Zano, Zilliqa, Telcoin, Clearpool, Anyswap, Landshare, Props, Props Token, Qubic, Katalyo

The overall market logic is clear: Bitcoin stabilizes the market, Ethereum absorbs capital inflow, and alternative coins gradually enter the preheating stage.

However, the real start of the altcoin market requires waiting for the current pullback to end. Investors need to be patient and wait for the best entry point. In this market environment full of opportunities and challenges, cautious allocation and long-term holding will be the key to success.