3 Trends to Consider Before Bitcoin Bull Run Resumes
The market is down, but the bull run isn’t over yet. When it resumes its upward run, some things will run a little faster than others. The next bull run in cryptocurrencies has already begun. One of the most notable differences compared to past cycles lies in the types of new investors entering the market. Bitcoin exchange-traded funds (ETFs) have effectively opened the door to wider participation by making it easier for participants to participate, while Ethereum
ETFs are widely expected to arrive soon. Newcomers may have some difficulty understanding cryptocurrencies, but there is a framework worth considering given their first investment.
Easy Start, Little Gain:
Beginners usually start by investing in big names like Bitcoin and Ethereum. In most cases, you can invest in Bitcoin and wait for at least six months before checking its price to see if it has grown enough to sell. But for those who only have a few thousand dollars to invest, investing in Bitcoin will not make you a millionaire. The growth potential in the near to medium term is 2-3 times the current value.
Experienced players know that they need to check out the latest trends. Investing in a dozen small projects can really pay off if done well. Assets that proved popular in the last bull run, such as new layer-one protocols and lending platforms, may offer the opportunity to grow your investment 5 to 10 times.
However, risk and reward are two sides of the same coin. How much one is willing to gain or lose in crypto really depends on the time, resources, and energy one is prepared to invest in studying the market. That’s the charm of crypto
Three stories worth watching in this market
There are three narratives that the average new user without any impressive experience can understand and be qualified to believe. The key is to figure out the story behind each product. Innovation is at the forefront of this space because people in the cryptocurrency space are innovative and constantly looking for something new. I see three such trends emerging.
The first is the combination of artificial intelligence and blockchain technology. A large number of projects are now trying to innovate at the intersection of blockchain and artificial intelligence.While there is no guarantee that these efforts will bear fruit, the narrative itself is powerful.
This trend, riding the wave of blockchain’s potential and cutting-edge advances in AI, could capture the imagination of investors and enthusiasts. I’m keeping an eye on RitualNet and Morpheus.
The second trend delves into more fundamental aspects related to the tokenization of physical assets, or debt tokenization. In traditional markets, the debt market is larger than the stock market. However, in the crypto space, the debt market currently does not exist.
Stablecoins can be considered its starting point, as companies issue stablecoins in exchange for real dollars and then buy short-term U.S. bonds themselves. However, the concept of corporate debt remains untouched in the crypto space. Therefore, everything related to debt tokenization has huge potential. PV01 and Ondo Finance are two projects in this space.
The third trend focuses on enhancing blockchain technology itself — improving its efficiency, increasing throughput, and reducing operational costs. It uses new technologies such as the parallel Ethereum Virtual Machine (EVM) to process many things at the same time, thereby speeding up transactions. Similarly, zero-knowledge (ZK) proofs keep things private but simple, making the entire system work smoother and less expensive. Sei and Monad are projects worth watching in the space.
But how do we use these narratives to dig deeper? Imagine an investor researching a product. 💰qun秆👀玮:417072555He is intrigued by a project, perhaps even excited. Every time he encounters something in the documentation that is hard to understand, he highlights it in red. Then he looks at the entire description and sees that there is too much red in the documentation: there are too many things in the product description that he doesn't understand.
And he doesn't invest. It's a simple strategy: if an investment is too complex to understand, it's probably not the right investment. This approach emphasizes the need for clarity.
So when thinking about investment trends, remember that the big funds are likely to have already made a move. If there is some kind of compelling narrative, then they have likely already invested in it. This is a good reminder to stay informed - to understand that in the investment world, it is often the big guys that rule the game.
