The current cycle presents significant challenges for crypto liquid funds, which are largely underperforming compared to bitcoin, the benchmark they aim to surpass. In 2024, bitcoin rose about 110%, setting a high bar that many liquid funds have struggled to meet. This phenomenon is exacerbated by the rise of bitcoin's dominance within the crypto market, which now stands at 63%. Many investors are drawn to altcoins under the assumption they will outperform bitcoin; however, this has led to disinterest in BTC, even as it approaches all-time highs. The market for altcoins is described as bleak, with a substantial monthly unlock of tokens predicted, further complicating the prospects for performance. As noted by experts, even market-neutral strategies are struggling, with many projecting a decline in altcoin values. Liquid funds must therefore work harder to identify successful investments amidst a generally pessimistic outlook towards altcoins. Upcoming editions of the series will address fundamental adaptations of liquid funds and the future of the crypto cycle.

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