The dynamics of the cryptocurrency market have always been the focus of investors' attention. Recently, there has been a view that if Ethereum (ETH) can continue to attract funds from Bitcoin (BTC), it may trigger the so-called "altcoin season." Let us delve into this phenomenon and its potential development path.

First, we need to clarify what kind of market performance can be considered the beginning of the altcoin season. A strong overall market is the primary condition, which is usually manifested by breaking recent highs, such as the peak in March 2024. If it can further surpass the historical high level of 2021, it means that market sentiment and capital flow have significantly improved, and the cryptocurrency market may enter a highly active phase.

Secondly, Ethereum reaching a new high will be a key indicator that mainstream funds have shifted from Bitcoin to the Ethereum ecosystem. At the same time, if Binance Coin (BNB) can break through the $1000 mark, it will also be seen as an important signal of strength in the altcoin market.

In terms of capital flow, we can usually observe the following patterns: at the beginning of a bull market, funds first flow into Bitcoin, causing its market share to rise, while other cryptocurrencies may experience price declines. However, when the altcoin season truly begins, funds flow out of Bitcoin, leading to a decline in its market dominance, while providing liquidity support for other cryptocurrencies, driving their prices up.

It is worth noting that a true altcoin season requires multiple conditions to be met: funds need to continuously flow from Bitcoin to Ethereum and other altcoins, while several leading projects must maintain an upward trend. A short-term increase in one or a few cryptocurrencies is not sufficient to confirm the onset of an altcoin season.

Overall, investors and market participants need to closely monitor overall market trends, the performance of major cryptocurrencies, and the direction of capital flow to accurately grasp changes in market cycles. At the same time, they should be wary of market risks and view market fluctuations rationally.