📈 We are in a bull market, but with a notable caveat.
😬 As of the beginning of the year, BTC, ETH, and SOL have seen increases of 49%, 29%, and 46%, respectively. However, the sentiment in chats about altcoins echoes the atmosphere of 2018 and 2022.
📊 CryptoCred entered the debate about the current stage of the cycle, stating, "The reason for much disagreement on our position within the cycle stems from the uneven distribution of gains in this cycle's crypto market.
Traditional capital flows that the average crypto investor relied on previously did not pan out this time:
1. 💰 The usual progression of investments from BTC to ETH, then to large and mid-cap altcoins, and finally to lesser-known 'shitcoins' didn't occur. Instead, the market focus shifted towards meme-driven themes and BTC.
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5. 🏆The influx of numerous new tokens, bolstered by memecoins, means that a 'bull crypto market' no longer ensures that all projects, even those not immediately identifiable as scams, will experience growth over weeks or months. The market has clear winners and losers, without the widespread rotations seen in previous cycles—for example, trading within the ETH ecosystem (L1+L2) was weak compared to SOL over many years, barring some exceptions.
🔄 With these dynamics, it's plausible that Trader A, who invested at the lows in BTC, SOL, and memecoins, feels confident as the market continues to perform well. Conversely, Trader B may have seen minimal returns or invested in what turned out to be scam projects launched by Binance.
⚖️ In essence, we are navigating a bull market with distinct nuances, shaped by our diverse portfolios, trading styles, time horizons, risk tolerance, and approaches to market volatility.