Let's first discuss how the bull market is formed:
Many people lament that the golden age of the currency circle seems to be gone forever, and it is becoming more and more difficult to make money. Why is this the case? Let's first analyze the formation process of the bull market:
First, for an investment product to rise in price, there must be funds willing to buy it. And why does the funds buy it? This is definitely because it is expected to rise in price.
When funds start to buy an asset, and the asset does start to rise, this will attract more funds into the market. As the price rises further, more funds pour in, and the bull market is formed.
It sounds a bit like a tongue twister, right?
Now let's go back to why funds buy. There is indeed an expectation of rising in the market. In the field of cryptocurrency, the expectation that there will be a bull market every 4 years or so has been verified many times, and a broad consensus has been formed.
Why every 4 years? This is because the Bitcoin mining reward is halved every 4 years. A decrease in the number of Bitcoins mined means a decrease in supply. In the case of unchanged demand, a decrease in supply will drive prices up, which has become an inevitable trend.
