Recently, there has been an interesting phenomenon in the market—the privacy coin sector has suddenly become active. This signal is worth paying attention to because it may indicate a larger market rotation brewing.

From a macro perspective, the seasonal pattern of altcoins actually exists. Whenever the mainstream coins' gains slow down, funds tend to look for new positions, and sector rotation just reflects this change in capital flow. The sudden strength of relatively dormant sectors like privacy coins usually means market participants are preparing for the next phase.

Historical experience shows that capturing two or three such sector rotation opportunities is enough to change the investment return curve. The key is to understand how funds flow between different sectors—from mainstream coins to altcoins, from established projects to emerging concepts—this cycle will always repeat.

Of course, any investment decision should be based on your own risk tolerance. But if you've been waiting for the market to give a signal, this wave of activity in the privacy coin sector might be a noteworthy reference point. The next step is to see whether other sectors follow suit and whether the capital scale can be sustained.