Bull markets typically go through the following stages:
BTC Dominance Stage: Bitcoin dominates the market, attracting capital inflow, while the altcoin market performs relatively weakly. Bitcoin remains strong, capturing the attention of investors.
ETH Relay Stage: Ethereum takes over the lead, with prices skyrocketing, accompanied by a variety of hot altcoins, especially projects in the fields of Ethereum's Layer 2, blockchain games, metaverse, and new public chains becoming active.
Public Frenzy Stage: Almost all cryptocurrencies begin to rise, and investors generally enjoy the feeling of rapid asset appreciation, with the market filled with FOMO sentiment. The surges of meme coins, as well as worthless coins like shitcoins and air coins, raise doubts about the market's rationality.
Crash Stage: The market ultimately faces a correction and crash, with mainstream coins experiencing significant pullbacks, and the plummeting altcoins causing widespread panic. The bubble bursts, and many overvalued projects encounter severe sell-offs.
This cycle will experience short-term extreme optimism and extreme panic, and investors need to operate cautiously to avoid blindly following trends.
