The cryptocurrency market is currently experiencing a significant shift in capital flow, with Bitcoin (BTC) consolidating its dominance, while other cryptocurrencies such as Ethereum (ETH) are facing severe challenges.

The ETH/BTC exchange rate has continued to decline and is currently approaching the key support level of 0.035. This phenomenon reflects that market funds are being transferred on a large scale from Ethereum to Bit, further reinforcing Bit's core position in the entire encryption ecosystem.

Looking back at the period of rising Bitcoin prices at the end of 2023, many small cryptocurrencies also briefly followed suit. However, as Bitcoin prices stabilized, the value of these small cryptocurrencies rapidly plummeted, with some even dropping more than 75%.

Currently, even Ethereum, the second largest cryptocurrency by market capitalization, is facing severe pressure, and the situation for smaller cryptocurrencies can be imagined. For investors, avoiding small cryptocurrencies in the short term may be a wise choice. Projects that lack solid fundamentals and primarily rely on conceptual speculation are particularly dangerous.

In this market environment, investors may consider two strategies: either to wait and observe temporarily until the market situation becomes clear; or to focus their investments on Bitcoin to avoid the high risks that smaller cryptocurrencies may bring.

However, the market is always full of variables. Despite the current pressure on most small cryptocurrencies, there may still be some high-quality projects that can stand out in adversity. Identifying these potential 'dark horses' requires in-depth market insights and professional analysis.

Regardless, it is crucial to remain cautious and rational in the current turbulent market environment. Investors should closely monitor market trends, conduct thorough research, and develop investment strategies based on their own risk tolerance.