Recently, Bitcoin once again set a new high, with prices breaking through $94,000, and many people are discussing whether this is the new peak of the bull market. However, unlike previous price breakthroughs, this rise seems to lack sufficient 'firepower,' with trading volume significantly declining. This phenomenon has raised doubts among some market participants, who believe that Bitcoin's rise may encounter a bottleneck, especially when breaking through the $100,000 mark, the market may face greater difficulties, fearing insufficient capital supply, and some investors have even started to take profits early, preparing to hedge.
As someone who has been paying attention to the market for a long time, I think this cautious mindset is very normal. After all, for large funds, every time they see a new high, they have to consider risk control, which is precisely the strategy I have always advocated. My approach is to take appropriate profits each time a new high is reached, allowing me to lock in some profits while avoiding excessive exposure to market volatility. This approach may not make you rich overnight, but it can help you maintain a more stable mindset in a volatile market.
Is there still room for growth in the future?
However, from a longer-term perspective, I believe that Bitcoin's rise is far from over. Firstly, the strong support behind Bitcoin cannot be ignored. In addition to the active involvement of large institutions like BlackRock in the U.S., more and more traditional financial magnates are beginning to view Bitcoin as one of the important asset allocations. The participation of these giants signifies that Bitcoin has extremely strong growth potential and funding support.
Moreover, although Bitcoin's current market awareness is still far less than that of gold, its market size is only one-tenth that of gold. As more funds enter the market and the general public's understanding of Bitcoin gradually deepens, the future potential is limitless. From my recent observations, many people's awareness of Bitcoin still stays at the stage of 'buying but unable to sell' or 'not allowed by the country,' which indicates that the popularity of Bitcoin is still very low and it remains in a vast blue ocean market.
The endpoint of this bull market will only truly arrive when the awareness and popularity of Bitcoin reach the level of gold. Currently, the market is still just getting started.
Changes in regulatory policies could become a catalyst
From a policy perspective, the recent changes in the U.S. SEC have also attracted widespread attention from the market. Trump has begun looking for a new SEC chairman, and many candidates have deep connections with the crypto industry. For example, blockchain industry lawyer Theresa has joined the candidate list, and crypto industry leaders like the founder of Coinbase have also participated in related discussions.
If the election of the new SEC chairman proceeds smoothly and the regulatory policies for cryptocurrencies become clearer, this will be a very positive signal. For large funds that have been in a wait-and-see state due to policy uncertainties, clear policies will greatly reduce their investment risks and encourage capital inflow into the crypto market. Moreover, this will also promote the landing of more crypto projects, helping the entire industry usher in a new growth cycle.
It is worth noting that many countries may also follow the U.S. crypto regulatory policies, which will further promote the global popularity of Bitcoin and blockchain technology. Therefore, in the long term, the clarification of crypto market regulations will inject new momentum into the industry.
Why are altcoins in trouble?
Although Bitcoin's price has repeatedly broken new highs, the performance of altcoins has been disappointing. Currently, the market is experiencing a severe stratification phenomenon: large funds only focus on Bitcoin, chasing more stable and mainstream assets, while small funds prefer high-risk, high-return 'meme coins'—these currencies have large price volatility, making them easy to attract short-term capital inflows.
It is worth noting that the current market's 'main funds' are concentrated in Bitcoin and a few popular 'meme coins.' Some altcoins that were once seen as potential stocks, especially projects within the Ethereum ecosystem, have begun to be neglected. For example, SOL has far outperformed Ethereum this year, causing some previously favored Ethereum projects to lose market heat.
This phenomenon reflects that the market's selectivity is becoming more apparent, and the inflow of funds has started to concentrate on a few popular projects. To stand out in the face of adversity, altcoins need to possess stronger innovation and market appeal; otherwise, it will be difficult to emerge from the current market slump.
Key nodes for the future of the crypto market
Although the current market performance of altcoins is poor, there are still opportunities. The following factors may become key drivers for the market to return to an upward trajectory:
Bitcoin breaks through $100,000: If Bitcoin successfully breaks through $100,000 and can stabilize in this price range for a period, then the market may welcome a reinvestment of capital, and altcoins may also hope to see new opportunities.
Approval of Ethereum staking ETF: If Ethereum's staking ETF is approved, it will attract a large amount of capital into the Ethereum ecosystem, thereby driving the rise of other blockchain projects.
Relaxation of crypto regulatory policies: As the regulatory environment of the crypto market becomes clearer, innovative projects and startups will gain greater development space, which may lead to a new round of market explosion.
As long as two of the two conditions mentioned above are met, the bull market for altcoins will reappear.
Summary
Overall, although the current market situation is somewhat polarized, we are still in a huge investment opportunity. Bitcoin still has ample room for growth, and the policy environment of the crypto industry is gradually improving. For investors, maintaining a flexible strategy that avoids excessive chasing of highs and also does not easily cut losses is the most prudent way to cope with the current market.
In the future, the crypto market will not only be a stage for Bitcoin. With continuous technological innovation and the gradual implementation of policies, altcoins and other blockchain projects still have the opportunity to welcome the next round of explosion.
The bull market has arrived, brothers come together!
