I have to say, this is one of the most unique bull markets I have ever experienced.

Normally, Bitcoin and Ethereum will rise first, and then altcoins will start to soar wildly.

But at present, China is releasing money and the US dollar is also cutting interest rates, but the market reaction has suddenly become dull.

In the past few weeks, the only outstanding performances are artificial intelligence (AI), SUI, a small amount of modularity and some meme coins.

Now, the market seems quite boring.

1. Money is not flowing into the crypto market

Although China is releasing money and the US dollar is cutting interest rates, it stands to reason that more money should flow into the market. But the reality is that this liquidity has not entered the crypto field in large quantities. Investors prefer traditional assets such as stocks and real estate rather than riskier crypto assets.

2. The pressure on project parties and institutions to unlock cash has increased

In previous cycles, ordinary investors had more opportunities to participate in high-quality projects early, such as through ICOs or launchpads. However, now many new projects are raised through private financing, and ordinary investors cannot participate.

When these projects enter the public market, early venture investors have received several times the return. When their tokens are unlocked, they often choose to sell them for cash, which brings continuous selling pressure to the market and depresses prices.

3. The altcoin market is too fragmented

Many new tokens have high fully diluted valuations (FDV), but low actual circulation. This means that the number of tokens circulating in the market is very small relative to the total supply.

At the same time, the number of new tokens with high FDV is too high, which further disperses the liquidity of the altcoin market.

As the locked tokens are gradually unlocked and enter the market, there will be continuous downward pressure on prices.

4. Lack of confidence among external investors

The sharp market fluctuations and some previous negative events, such as the closure of the FTX exchange and the collapse of the Luna project, have caused many external investors to take a wait-and-see attitude towards the crypto market.

5. Lack of new market hotspots

In this cycle, we have not seen similar innovations that can attract the public's attention to drive market sentiment. ICO, DeFi, and NFT have all brought corresponding altcoin crazes.