For those who are focused and invested, 2025 could be a life-changing key year.
Author: Yano, BlockWorks Co-Founder
Compiled by: Shenchao TechFlow
The bull market is divided into four phases.
Buckle up, we have just entered the most exciting phase.
Welcome to the third phase~
Just a reminder, the first phase is rebirth.
This phase occurs from January 2023 to January 2024.
In the rebirth phase, the fatigue of the bear market is the main characteristic.
Apathy has made all stories lose their appeal.
Your friends and the media are still focused on the collapse of the bear market.
Layoffs are still ongoing.
However, prices are quietly recovering.
Bitcoin has tripled.
But you hardly noticed because you are still in a losing position on many investments.
Only veteran cryptocurrency investors who have experienced two cycles or more realize that the bull market has begun.
Most people still don't believe this is the start of a bull market.
The second phase is excitement.
This phase started in February 2024 and ended last week.
Some coins are approaching historical highs. Market stories are returning, but only a few each quarter.
Everyone in the cryptocurrency space knows we are now in a bull market.
But strangely, your friends still haven't texted you.
You are in a strange state of both excitement and anxiety.
Layoffs are basically over, but hiring has not yet restarted.
This field seems closed. No one is leaving, and no newcomers are joining.
Overall, life is good. Your cryptocurrency friends are all profiting.
This is the calm before the storm.
The third phase is euphoria.
We are currently in this phase.
The euphoria phase officially began with the presidential election on November 5th.
This is a delightful moment.
Everyone is making money, but speculators have not rushed in yet.
Seize the opportunity to enjoy this moment, as it will be very brief.
The assets you hold are about to surpass historical highs (if they haven't already).
In the past, there would be only a few new market stories each quarter, but now there are new stories every week.
By the end, there will be new stories almost every day.
No one is tired of these stories—every idea is seen as a 'good' idea.
Everyone with fans is seen as a genius and has their own insights on the new market stories.
Someone will make money on this week's popular coins, I can guarantee they will show off.
This can be frustrating.
(But remember, everyone has their own interests, and no one will share their failures.)
New market stories bring new coins.
Coins are rising every day. You won't own most of them.
That week you might earn 8%, but you'll feel frustrated for missing out on [the hot new coin].
The combination of new coins and new stories has led to 'fear of missing out' (FOMO).
If you're not careful, FOMO can get you into trouble.
Some advice:
Understand your investment strategy and its pros and cons.
Trading every day? Just know that this will affect your work and mental health.
Focusing on building? Just know that you might miss out on some significant deals.
Everything has its pros and cons—understand them.
Don't try to do everything, or you won't succeed.
Back to the third phase.
The private market is about to get exceptionally hot.
It all started with asset allocators. They woke up on November 6th to find their investments in cryptocurrencies severely lacking.
They began reaching out to venture capital firms and hedge funds for investment allocation.
These companies will announce new large-scale funds faster than you can imagine.
Late-stage venture capital has been quiet for over two years. Now it will make a strong comeback.
Large funds and an open IPO market mean that B-D round companies can raise funds again.
Large financing is becoming the norm again.
The A round financing deal was completed quickly.
This has attracted new world-class founders to join.
Hiring is becoming very competitive.
Protocols offer enticing token rewards to top talent.
If you're a founder, you have 3-6 months (maybe less) to hire the best talent at a reasonable salary.
After that, you'll need to work hard to catch up.
We are mainstream again.
(Forbes), Bloomberg, CNBC... they are all enthusiastic about cryptocurrency.
Your friend texts you about Cardano. Your financial advisor suggests allocating 5% to Bitcoin.
Traditional finance is racing to 'tokenize everything'.
Then, sometime in mid-2025, strange things start to happen.
Entering the fourth phase: disconnection.
(Fortune) 500 companies announce large-scale purchases of Bitcoin.
Athletes and artists begin to get involved—cryptocurrency is penetrating culture.
Venture capital firms are no longer conducting due diligence.
Speculators raise millions and become the center of attention.
Random coins can surge 10 times within a week.
In the fourth phase, everyone begins to believe that the market will rise forever.
Delusions affected decision-making.
This phase can also be described as madness.
Everything is becoming unreasonable.
There have been new market stories every week.
Now everything has turned into a story.
Your wealth exceeds what you once imagined.
Your high school friend launched a token, and his net worth has reached tens of millions.
A seasoned investor bought a sports team.
Bieber launched a decentralized social platform.
Lebron has launched a meme coin.
Major companies have invested billions in marketing, so get ready.
The next 12 months will be a crazy time. For those who are focused and invested, 2025 could be a life-changing key year.
But if you're not careful, the arrogance and laziness of the fourth phase could cost you.
Finally, don't forget to enjoy life from time to time.
Now, let's start building.