Bitcoin Wealth Effect Fueling Speculative Altcoin Mania

Bitcoin's gains this year are making crypto traders feel richer, so they are seeking higher returns from more speculative "altcoins" like Dogecoin and Shiba Inu.

This "wealth effect" happens in traditional markets too, when investors take profits from blue chip stocks and invest them in riskier assets.

Bitcoin's exponential gains in dollar terms over time have created an ever-growing pool of wealth for investors to rotate into altcoins.

Obscure coins with lower market caps like PEPE can spike much more easily from this influx of profits.

This rotation may continue fueling an "everything season" across crypto rather than just an altcoin rally, without halting Bitcoin's bull run.