This content was created by Alexander Lorenzo. This content was uploaded by Alexander Lorenzo. This is a YouTube video titled "The 5 Stages of The Altcoin Cycle That Could Make You Rich" (created 2025-10-08). It contains a single-speaker monologue explaining a staged model of an altcoin season: Stage 1 — Bitcoin hits new highs while Bitcoin dominance falls (liquidity shifts to altcoins); Stage 2 — Ethereum begins outcompeting Bitcoin and is used as gas to buy altcoins; Stage 3 — large-cap altcoins rally as traders move from ETH into higher-market-cap coins; Stage 4 — low-liquidity meme coins, NFTs and simple "small-brain" narratives explode, initiating a 30–90 day "power cycle." The speaker gives practical warnings about euphoria, greed, and taking profits (sell winners if you got lucky).
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You have to understand the stages of the altcoin season. So what I'm going to do is break down exactly how altcoins are going to play out in the next year or so. Stage 1, Bitcoin will break all-time high, but at the same time Bitcoin dominance will drop. Bitcoin dominance is basically Bitcoin's dominance over the market. So if it's dropping, that means altcoins are increasing in dominance. This shows the liquidity is going from Bitcoin to altcoins, specifically when Bitcoin's price is going up. This really shows at the core That there's a lot of overexcitement. Bitcoin's going up and altcoins are going up even faster. That's stage 1. Stage number 2, Ethereum starts to outcompete Bitcoin on a substantial level. Ethereum is used as the gas to buy other altcoins in most cases. So when people are starting to buy Ethereum, that is a sign that people are starting to think about altcoins. This really shows that people are getting off the centralized exchanges and going on decentralized exchanges. And you could actually find this by looking at the ETH/BTC charts, basically a ratio that shows that Ethereum is outcompeting Bitcoin. Number 3, Large liquidity coins besides Ethereum and the main ones start outcompeting Ethereum itself. So we're talking about the large market cap coins that you see on CoinMarketCap. When you start seeing a lot of them pop off, you can't really find a chart for this, but you'll start to see them individually. You'll see some of them like pop up like 600%, 500%. This is also stage 3 because what's happening is the liquidity is going from Bitcoin to Ethereum. And then now people are starting to find out about the safer coins. They're still a little conservative. We haven't really tapped into the full-on euphoria hype mode. People are still keeping it conservative by buying higher market cap, higher liquidity coins. Stage number 4 is where the money is made. This is when the low liquidity coins start outcompeting the high liquidity and Ethereum and Bitcoin. They start just doing crazy numbers. I remember last cycle there was a rock that sold for like $5 million. I'm talking about a picture of a pixelated rock where we start seeing these really stupid projects. And also to add in this category, NFTs. NFTs are super small brain. We have 2 different types of narratives. We call it big brain narratives, which is very difficult and complex to understand. And narratives just means stories. And when the big brain ones are hitting, that's probably not the altcoin cycle. When you start seeing very simple narratives, very simple ones, like it's kind of like it goes over your head. This is why people that are too smart or they think they're too smart with their research strategy is probably not going to make money. Keep in mind, Shiba Inu last cycle did the best out of any coin in the entire market and it's just a meme coin, right? So the point is like you want these small brain narratives. Once you start seeing the small coins, small liquidity, stupid projects that just go over your head, they're so simple and like really seems like it's dumb and they're doing really well. That right there is stage 4 and this officially starts the last stage, which I call the power cycle, which is anywhere from 30 to 90 days. It's going to be a period where you look at any coin, does not matter what it is, and it will go up in value. It's going to be like putting a blindfold on, going to the market cap websites, picking a coin, and thinking that you're a genius. Everybody will think they're a genius in this moment. And this is where most people lose their money because they get too greedy. Please, when you see this type of excitement, humble yourself. Understand that, hey, look, I don't really know what I'm doing and I'm somehow making a lot of money. And take that money out of the market. I've seen way too many people lose all their money because they got too greedy and they thought that they knew what they were talking about because they bought a coin from some YouTuber that said to buy a coin. And now they think they're a genius and They did no research at all. Sell the coin, bro. If you hit and you get lucky, sell the coin.
