⚡Reflections from the Ark: How does Fiat flow to crypto?⚡
🔸The crypto money flow cycle is essential to understand the movements of the market itself. It usually begins with an adoption by Fiat investors at #Bitcoin as an entry portal to the ecosystem.
🔸If the price increases, it usually enters consolidation phases, leading investors to turn to other assets such as Ethereum. The cycle progresses towards#altcoinswith medium or low capital, in search of high returns comparable to high risks.
🔸The cycle that occurred in 2020 explains this behavior perfectly, after "the incident", the low prices of "the King asset" promoted the entry of new investors, driving the subsequent #bullmarket that, when it "stabilized" attention was directed to Ethereum and #altcoins.
🔸This progression can serve to understand and know how to interpret market cycles, and position oneself for subsequent movements to balance the investment-risk balance.
🔸However, cycles may follow a pattern but the ecosystem is constantly changing, sometimes oblivious to geopolitical and regulatory situations, sometimes closely related to both factors.
🔸Volatility is a key factor to add to the equation, since with a low market capitalization it is more manipulable in prices, due to the "big players". If we add insufficient experience or learning from investors, we have formulas to understand that if these two scenarios change, the market can become increasingly solid.
