According to PANews, the most explosive market in a bull market presents numerous opportunities for wealth creation. These opportunities are not just 20 or 50 points, or 2 or 5 times the increase, but rather 20 or 50 times the great market conditions. The bull market's wealth wave mainly comes from the release of three waves of capital.
Firstly, there is the switching of funds from Bitcoin (BTC). A significant altcoin market usually occurs after a substantial BTC increase. The market forms a consensus that BTC rises first, followed by altcoins. When BTC reaches $100,000, its total market value will reach $2 trillion. Even if only 5%-10% of the funds switch to altcoins, that is still $100 billion to $200 billion in capital. This is a significant amount compared to the usual excitement caused by a $1 billion increase in USDT.
Secondly, there are market internal funds that missed out on previous opportunities. Before a market wave begins, there is often an adjustment period where many people panic and sell, holding only USDT. As BTC rises, these funds are often hesitant to buy. As the market continues to rise, these funds slowly start to buy in. Due to the large market scale, several billion dollars are often bought in during an upward trend that starts at the bottom.
Lastly, there are new entrants to the market. With the first two waves of capital, explosive coins and leading coins emerge, such as Dogecoin (DOGE) and Shiba Inu (SHIB) in 2021. Friends and family of those who have already invested are often brought into the market. Many new investors initially buy a small amount to test the waters, and as they see their investments grow, they believe in the potential of the crypto market and increase their investments.
Understanding these three waves of capital driving the bull market can help investors determine when the next big opportunity will arise. However, it is essential to note that the current market conditions may not be ideal for a significant increase. Firstly, BTC switching funds are limited as BTC's rise is in a middle position, and fewer investors are willing to switch to altcoins. Secondly, the main driving force of this year's market is ETF funds, which cannot be transferred to altcoins. Lastly, the overall market position is relatively heavy, with not many funds missing out on previous opportunities.
Investors should remain patient and not be discouraged. By holding on, they will eventually see the light of victory.