Capital Rotation Map
liquidity migration model
Capital Rotation Map is a framework for visualizing how capital flows through the crypto ecosystem during market cycles. It outlines the typical sequence in which money movesÔÇöfrom foundational assets like BTC and ETH into altcoins, DeFi, and finally into real-world asset off-ramps such as silver, gold, or tokenized real estate. By mapping this progression, traders can anticipate where profits will rotate next, avoid overextended markets, and reallocate toward yield or preservation zones before sentiment flips.
Use Case: After BTC tops and ETH begins to lag, capital rotates into mid-cap DeFi projects, then memecoins. Savvy investors recognize this as late-cycle behavior and begin converting into $KAG or real estate-backed tokens to lock in gains and prepare for the next accumulation phase.
Key Concepts:
- Liquidity Migration ÔÇö Capital shifts directionally across crypto sectors and into real-world hedges.
- Rotational Awareness ÔÇö Timing exits from overbought tokens into underpriced or stable yield assets.
- Cycle Navigation ÔÇö Front-running inflows at each phase while preparing exits before parabolic peaks.
- RWA Off-Ramps ÔÇö Using assets like $KAG, $KAU, silver, gold, or property tokens to preserve gains outside speculative layers.
Summary: The Capital Rotation Map is a visual and strategic guide to where value flows in crypto market phases. It helps traders and investors ride momentum early and exit into hard assetsÔÇölike precious metals or tokenized landÔÇöbefore volatility resets the cycle.
| Rotation Phase | Typical Asset | Signal to Watch |
|---|---|---|
| Phase 1 | BTC, Stablecoins | Dominance spike, regulatory safety, macro fear |
| Phase 2 | ETH | Gas spikes, ETHBTC strength, DeFi TVL growth |
| Phase 3 | Large-Cap Alts (XRP, ADA, SOL) | Narrative pivots, layer 1 resurgence |
| Phase 4 | Mid-Caps & Ecosystems | TVL spikes, new farms, cross-chain activity |
| Phase 5 | Microcaps / Meme Coins | Social hype, parabolic moves, euphoric FOMO |
| Phase 6 | $KAG, $KAU, Silver, Gold, Real Estate | Cycle exit, preservation rotation, volatility hedge |