Today, the Fear and Greed Index has surged to 94 again, a situation very similar to that from late October 2020 to early February 2021.
Many people are discussing that the current situation is just Bitcoin rising, while most other cryptocurrencies remain in a slump, so what they feel more is fear, seemingly unaware of the so-called atmosphere of greed.
If this market trend fully replicates the previous one, then by the end of December 2020, Bitcoin would break through its previous high set in December 2017.
By early January 2021, the price of Bitcoin had even reached more than twice the high point at the end of 2017. However, at that time, the price of Ethereum was still less than half of its early 2018 high.
Looking at the current situation, the price of Bitcoin is already 1.5 times the high point of 2021, and the price of Ethereum has also reached about 70% of the 2021 high. Compared to this, doesn’t it feel like the situation is slightly better?
Regarding whether altcoins can welcome a bull market, there are currently two different opinions.
The first opinion believes that the timing is not yet ripe, and Bitcoin needs to continuously break through previous highs to fully unleash the huge potential of the entire cryptocurrency market and open up the vast "starry sea" of the market.
The other opinion points out that the market has already changed this year.
There has never been a truly valuable innovative achievement in the market, and investors have become weary of projects that solely rely on narratives to attract attention.
Today's investors have become more mature, and they are more inclined to buy low-circulation and high FDV (Fully Diluted Valuation) VC coins.
As investors become increasingly mature, the entire market will gradually show structured characteristics, with quality projects developing better and poorer projects falling into deeper trouble.
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