Bitcoin has been sideways for nearly five months, and its trading volume is only half of that during the bull market in 2021.
Every bull market cycle needs a catalyst to attract capital inflows.
The current market lacks such a catalyst.
A catalyst may be an emerging event that can attract capital, or major macroeconomic news.
At present, it seems that there is no new event in the market that can become a catalyst.
It will definitely not be VC project coins that attract large-scale capital inflows. There are many VC coins on the market, but now there is a consensus that people will not take over, and at most do short-term trading.
Inscription rune games can only be regarded as half an emerging event. This type of game has proven to have a market. However, there are a lot of dealer operations. Once the inscription rune game is popular, the on-chain handling fees will soar.
The pumping of miners will quickly silence the market. It has happened twice before, and each time it did not exceed 15 days.
In 2020, due to the outbreak of DeFi, there was no pumping at that time. It was a pure gift model. Although the gift gradually decreased, this model was enough to attract a lot of funds to enter the market.
Because the inscription broke out too quickly and lacked sustainability, it completed the half-year journey of DeFi in a few days.
Therefore, it is difficult to become a catalyst for the bull market. To become a catalyst, it requires continuous power and money-making effects, and it is necessary to allow newcomers to make money continuously and stably.
There are not many people who mention inscriptions now. For the remaining few targets, such as Ordi, Sats, Rats and Dog, whether the bull market can be launched is still unknown.
If it appears too early and fails to catch a big wave of market conditions, it may be forgotten by the market.
Their new story must wait until Bitcoin reaches a new high. It may be a good thing that VC projects are no longer popular.
In this way, funds will flow more concentratedly to those areas recognized by the market.
Finally, what remains is macroeconomic news, such as interest rate cuts, and then large funds flow into Bitcoin and Ethereum with ETFs.
The inflow of these funds may be the catalyst needed by the market.
If you like spot, want to roll funds together, and hoard bull market spot, click on the avatar, follow me, share for free, and wait for you in the circle!
In the current fluctuating market changes, blindly working alone will never bring opportunities! ! !
