After the pandemic ended in 2020-21, the U.S. flooded the market with liquidity, pushing BTC from under $3,000 to over $60,000, increasing by more than 20 times. But now, everyone around the world is scrambling for that liquidity. Where can money be found in the crypto world to push Bitcoin from $60,000 to $120,000 again?
BTC has been in a sideways trend for half a year; the core issue is that the price is too high. Both institutional and retail investors feel it’s expensive. It might be that the timing isn’t right, and the lack of clearing chips has made the situation too heavy. Without a sharp decline, there hasn’t been massive trading volume; with insufficient institutional chips, pushing the price up becomes more costly, and it can’t break out of this bottom fluctuation.
Currently, there are significant divergences in the market, emotions are inconsistent, and funds are not aligned; even the East and West are not consistent. Bitcoin has been integrated into asset allocation by institutions, gradually becoming a battleground for institutional trading, which is why the market has behaved this way over the past six months.
When emotions explode, Altcoins can soar and create wealth, which might be a good arrangement. But the narrative in the crypto world has become problematic—VCs are despised, ETH is criticized, L2 has been debunked, BRC20 has lost its heat, and no one cares about blockchain games anymore. Are we really relying on memes?