Early, let's analyze the overall situation. In recent times, Bitcoin has been fluctuating around $66,000, but the entire market seems unusually depressed. If Bitcoin fluctuates slightly, the altcoin will fall by 5-10 percentage points. The reasons for this phenomenon may be as follows:
1️⃣ Strengthening of supervision: After the Bitcoin ETF was passed, the entire market gradually accepted more supervision. Although blockchain is decentralized in nature, it is difficult to be truly decentralized as long as there are people involved. Except for Bitcoin, any other project will basically be scrapped once it loses the support of VC and R&D team. As the market becomes regularized, these projects may face stricter supervision, and under the current imperfect supervision, they may be liquidated in the future. This is an important reason.
2️⃣ The market is gradually maturing: Although the blockchain field is still relatively immature, over time, the number of participants has increased and the infrastructure has become more and more complete. Old investors are becoming more and more savvy and will not blindly follow the sudden popularity of a project or sector, resulting in a weakening of FOMO sentiment, failure to attract new funds to enter the market, and a weakening of the wealth-making effect.
3️⃣The influence of venture capital and institutions has weakened: In the past, many investors followed big venture capital and institutions, but as the number of harvesting increased, market participants gradually sobered up. No longer blindly following, resulting in a weakening of confidence in the altcoin market. This may also be one of the reasons for the rise of the inscription ecosystem. Players are no longer willing to accept VC's plate, but to engrave fully circulated inscriptions through GAS. However, the birth of runes destroyed the concept of inscriptions, causing the inscription ecosystem to decline rapidly, and runes may become VC's playthings.
4️⃣ Insufficient innovation: From the birth of the project to the issuance and then to the transaction, many encryption projects have gradually become assembly line products and lack innovation. There are fewer new ways of playing in the market, and investors are less interested in new projects, resulting in a lack of vitality in the market. Old currencies are no longer as good as in the previous bull market. Even if it is the early stage of the bull market, this wave of bull market is no longer as crazy as before. It seems that the original trajectory has been changed by the influence of the general environment.
