In the process of a bull market, it can generally be divided into the following stages.
First stage: Bitcoin rises first, leading the market, followed by public chains, after which Bitcoin enters a phase of oscillation and adjustment.
Second stage: Public chains become the main force leading the rise, while Bitcoin follows the upward trend.
Third stage: Bitcoin and public chains maintain a sideways position at high levels, at which point altcoins begin to gain momentum and experience explosive rises.
Fourth stage: The bull market ends, and the bear market arrives.
Looking at the current market situation, I believe we are still in the first stage. The market presents a peculiar phenomenon of two extremes. On one hand, Bitcoin and the meme sector are exceptionally active and bustling. With Musk's successful bets and Trump's rise to power, Dogecoin (doge) has seemingly been enchanted, staging an astonishing fourfold increase in price within just 10 days, and it continues to maintain strong momentum. On November 13, Pepe coin (pepe) also saw a significant surge, with a daily increase of over 90%. However, on the other hand, most altcoins are performing poorly, following the downward trend closely, but showing no signs of movement during upward trends, struggling like they are in a quagmire, half-alive.
The core reason behind this phenomenon has been detailed in the previous two articles by Lao Xu. Currently, although the Federal Reserve has made two interest rate cuts, it is still generally in a high-interest period, and the market is in a state of liquidity shortage, with funds locked in areas that can provide strong and stable returns.
Due to the approval of the ETF, Bitcoin is favored by various institutions as a low-risk asset similar to government bonds. In this global high-interest cycle, there are numerous investment options with low or even no risk returns, and high-risk assets like altcoins naturally attract no interest. As for the explosive rise of meme coins, it is merely a traffic trick played by vested interests in the crypto space, followed by made-up stories of wealth from scams and pyramid schemes, and finally, it is an act of art where the retail investors use consensus to counter the high FDV schemes of institutional VCs.
If you are currently losing and don't know what to do, you can follow me, click on my avatar to find me anytime, and I share all kinds of contract and spot trading tips. Just to gain followers