The current situation is very clear, the bull market has already started, and there is basically no doubt about it. It can be said with certainty that we are still only in the first phase of the bull market.

Next, the second phase that is about to commence is crucial, as it is the period with the highest profit efficiency in the entire bull market. If the timing is not grasped well, it is very likely to miss the best opportunity of this market wave.

First, let's briefly talk about the characteristics of the first phase: mainly led by BTC, with only a few sectors performing well, while most altcoins actually perform moderately. The underlying logic has been mentioned before; here is a simple summary:

1) When the market just started, market confidence had not fully recovered, and it needed a significant rise in BTC to give the market a strong boost, telling everyone, "The bull market is really here."

2) When BTC experiences a slight pullback, because most people have previously experienced deep traps in altcoins during the bear market, they have a strong panic mentality, leading to deeper pullbacks in altcoins.

3) Many altcoins still have a lot of trapped positions, and even if the main forces want to pull the price up, they will repeatedly wash out at some key positions.

The second phase of the bull market can be said to be the most exciting part of the entire market. At this time, due to the continuous rise of BTC, market confidence is becoming stronger, and funds are starting to become active. Moreover, since some sectors have already experienced explosive growth in the first phase, this makes the overall market atmosphere very "subtle."

Why is it said to be wonderful? Because those skyrocketing coins will become the "benchmark" in people's minds, and everyone will use their increases to measure the market. However, only a few sectors and coins perform well, and most people are actually still losing money or not making much. This makes those who haven't made money start to envy or even feel jealous.

As the saying goes: "Brothers can lose money together, but if you become rich alone, I can't stand it!" This sentiment directly drives the biggest characteristic of the second phase: the wealth effect in popular sectors will be further amplified.

The reason is simple: the sectors that rise in the first phase will be constantly promoted for their "potential" and "bright future" by the market. The focus of speculation in this phase is no longer how many times it has risen or how high its market cap is, but whether new funds are entering. However, the reality is that many people criticize those who have already become rich while simultaneously being unable to resist rushing in themselves. Therefore, in the second phase, the market often experiences a broad rise, and the wealth effect of leading sectors will be even more pronounced.

As for which sectors may experience a wealth effect, I personally believe that the focus is on the MeMe sector, for three reasons:

1) In the past month, the performance of MeMe has been the best, with the strongest profit effect.

2) Although the "MeMe Super Cycle Theory" is controversial, most people in the market have already accepted this statement.

3) Binance's support for MeMe has noticeably strengthened, raising the "ceiling" of the sector, with a very prominent wealth effect.

For the MeMe sector, for people (referring here to those who are not specialized technicians or those who spend a lot of time every day chasing low-quality coins), there are three ways to play MeMe.

1. MeMe in the exchange

Although the MeMe coins in exchanges may not rise as exaggeratedly as those on-chain by thousands or tens of thousands of times, they are more suitable for large funds or as targets for heavy investments. After all, in a bull market, only the MeMe coins in exchanges with sufficient liquidity can carry large amounts of funds. If the market cap ceiling during the bull market can reach the trillion level, there is still potential for a hundredfold increase.

PNUT

Pnut is my favorite coin and also the most important symbolic presence in my portfolio, mainly for the following reasons:

1) Musk's latest support has made its status second only to Doge, and those ordinary MeMes that are casually liked cannot be compared at all.

2) Pnut represents the symbolic significance of animal property rights and anti-corruption laws, and with Musk's promotion, it has been closely linked to Trump's campaign victory.

3) As a new coin launched on Binance, the MeMe sector may experience a switch between new and old hot spots, while Pnut, as a newcomer, is more likely to attract attention.

4) Looking back at the bull market of 2021, Musk successfully boosted Doge and Shib with his influence. If this bull market opens, he is very likely to promote a new MeMe project again, and Pnut is currently the most fitting choice for this label.

ACT

In the AI era, AI MeMe has become the hottest topic. Although there are already several MeMes under AI Agent, ACT is the only one that has been listed on Binance, making it the preferred choice for large fund transactions. Moreover, like Pnut, it is also a newly listed coin.

2. High-quality MeMe on-chain

Selecting high-quality MeMe on-chain also has significant upside potential. If you are lucky enough to be listed on Binance, it’s like riding a rocket. However, it should be noted that MeMe will also experience significant fluctuations when it declines, so I will still control my position within a range I can bear.

I personally will spend some time researching this area in depth. Recently, due to the frequent listings of coins like Pnut and ACT on Binance, the high-quality MeMe on-chain has seen a significant increase, but it has already started to adjust in the past two days. If it continues to pull back next, that will actually be a great buying opportunity.

3. New MeMe

This area needs to closely follow market hotspots in real-time and buy in a timely manner.

Position strategy operation

The market is currently transitioning from the first phase to the second phase, and the full entry into the second phase is marked by Bitcoin (BTC) pulling out a few large daily candlesticks again, stepping onto a new level. However, if you wait until BTC starts rising sharply before switching to altcoins, the prices of altcoins may no longer be cheap.

Therefore, I recommend starting to gradually shift BTC positions to altcoins now. Key sectors can be allocated more, while other sectors can be built with a small amount for testing. My own operation is that before last month, my position was mainly concentrated in BTC, and from last week onwards, I started to gradually adjust and slowly shift towards altcoins. The key focus is on Pnut and projects with action direction.