The essence of finance is not that money disappears, but that money is transferred.
Why does it fall? Because we need to get more chips and let more market participants enter the market, so that the next round can break the shackles of 100,000; why does it rise? If we get enough chips, we have to start the market. As for what good news to use to push the market and how high it can be pushed, it is just an operational problem.
Sometimes the news and technical aspects are often contradictory, and often at this time, sentiment indicators are very useful.
For example, many people are definitely betting on callbacks and shorting. I used to love to do this. I would short immediately if I saw a short position, without waiting for a second, and then I would lose my pockets. But now I won’t. I will look at the long-short position ratio and understand who your opponent is before betting.
The cake has not changed, but there are more people eating the cake.
On the other hand, the market size is larger, so the overall increase may not be as good as a few years ago. Projects such as Meme and AI have a lot of room for hype, so the bubble is also likely to be larger. For other projects, they can only be considered from the perspective of practicality and protocol income. Without these basic elements, it is difficult to obtain more long-term value.
Another major omission in this cycle is the lack of venture capital.
In previous cycles, venture capital and token prices went hand in hand, but in the current cycle, although BTC rose from 20,000 to 70,000, venture capital has hardly moved. Continued capital inflows are essential to maintain excitement and FOMO, especially as most cryptocurrency protocols are still struggling to maintain a business model of natural growth.
We may need to see more regulatory clarity after the US election before venture capital will re-enter the field.
Will the bull market with thousands of coins flying together come again?
I think they will all rise in the crazy stage of the bull market, but the degree is different. There are strong coins and weak coins. It is still difficult to increase by several times or dozens of times. Some coins are destined to exit the stage of history, just like the star coin EOS a few years ago. Who doesn’t know that after three waves, it will look at 500, but the result is the failure of diamond hands. It is still necessary to choose strong coins and follow good trends.
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