What stage is the cryptocurrency market in now?
The cryptocurrency market is actually a microcosm of the capital market, and there is no essential difference from stock, futures, and other markets.
As long as it is a capital market, cyclical patterns will always exist.
These cyclical patterns are caused by the profit-seeking behavior of capital. The cyclical patterns in the cryptocurrency market are also very obvious. There is a bull market every four years, which exists from the current perspective.
Therefore, the characteristics of the capital market also determine the volatility characteristics of the cryptocurrency market. That is, the target of capital operations will differ at each stage.
Bull Market Phase 1:
Mainstream coins like Bitcoin and Ethereum rise first, driving the overall market atmosphere.
Bull Market Phase 2:
Medium market cap value coins are discovered by capital, and a batch of value coins starts to rise, showcasing an overall profit-making effect in the market.
Bull Market Phase 3:
Small and medium market cap coins begin to rise, and the market is in the stage where the profit-making effect is most obvious, but Bitcoin and Ethereum experience stagflation.
Bull Market Phase 4:
Altcoins soar, with several times increase in a day. Everyone's emotions are stirred, and the market is in an excited state.
Finally, Bitcoin suddenly drops, and all coins in the market follow the decline.
Since 2007, when trading stocks, such situations often occur. Every time PetroChina and Sinopec suddenly surge, while other coins do not rise, it is usually the time for a final crash.
From this perspective, in the current cryptocurrency market, Bitcoin has been continuously rising, and other mainstream value coins have also seen increases, but small market cap coins and altcoins have not risen. I feel that we are currently at the end of Bull Market Phase 2 and the beginning of Phase 3.
Based on the exchange rate comparison between Bitcoin and Ethereum, Bitcoin's proportion is still very high. Therefore, there may be changes in the exchange rate after the year, starting Phase 3.
Similarly, another characteristic of this bull market is that meme coins remain in the bull cycle, especially primary market meme coins, which have a good profit-making effect.
The Shiro coin I bought is a super strong meme coin led by the community, with a market cap exceeding 20 million RMB. After adjustment, Shiro will continue to surge, with the next target being a market cap of 50 million USD.
$DOGE $BTC Therefore, holding Shiro, the future is promising.
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