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I noticed an interesting process currently unfolding in the market — a large-scale cleanup of crypto tokens. This is not just random, and analysts like Ben Cowen correctly point out that it’s necessary for healthy cycle development.
The thing is, when we look at Bitcoin dominance charts, it’s clear that the market needs some consolidation. All these altcoins that have lost their meaning or never had prospects from the start need to go away. It’s a natural cleansing process.
Why is this so important? Because a healthy ecosystem is essential for a sustainable bullish cycle. When questionable projects and trash tokens are removed from the market, it boosts Bitcoin’s dominance. The chart shows that this process really helps strengthen the position of the leading cryptocurrency.
This isn’t a bearish signal; it’s more like cleansing before the next growth phase. The market filters out the weak, leaving only truly valuable assets. And looking at Bitcoin dominance over the long term, such periods often precede more powerful moves.
Overall, this process is unpleasant for owners of trash altcoins, but it’s necessary for the health of the entire market. That’s how this selection works.