The foundation of the big bull market:
External environmental factors:
The Federal Reserve has ended its interest rate hikes and the United States has started a new round of massive money printing, with crypto assets becoming one of the important reservoirs.
Internal factors of the industry:
The 2022-2023 bear market will be fully cleaned up, risks will be cleared, and obstacles will be eliminated.
The Ethereum ecosystem is thriving, ETH has a deflationary mechanism, and the fundamentals are positive.
In a bear market, the market makers use various negative factors to smash the market and collect chips. Institutions follow suit and enter the market, and the main force's layout is completed.
Bitcoin spot ETF passed, more people can easily buy Bitcoin, attracting a large amount of capital to enter the market
Bull Market Process:
The sign that the bull market has officially started: In May 2024, BTC will be halved, and the four-year cycle is the strongest consensus in the crypto market.
The main force uses various narratives and wealth effects to attract traffic from outside the circle, and a large number of users and funds enter the market, thereby driving the market up.
It is highly likely that Bitcoin and Ethereum will suck the blood and pull up the market, and then the altcoins will make up for the rise. During this period, there may be a large-scale correction to clean up the market.
The public chain ecosystem is thriving, various high-quality applications are being implemented, the number of crypto users continues to increase, and the industry is experiencing unprecedented explosive growth.
Key narrative:
Web3: The sector with the most potential in the next bull market and also a key area for attracting external funds.
L2: With the prosperous development of the Ethereum ecosystem and the solution to the Ethereum expansion problem, L2 will be one of the most watched sectors in the new round of bull market, and it has great room for appreciation in the long run.
Metaverse: The last bull market was only a concept hype, but the new bull market will have more practical applications.
DeFi: Subverting the traditional financial industry is an important part of the decentralized revolution and still has a lot of room for development.
GameFi: The last bull market brought a wave of heat to the circle. Although the results were not ideal, it was also a pioneering attempt.
NFT: NFT has great potential for the future and will not be limited to the hype of small pictures.
RWA: A new concept that can represent real-world assets for trading on the chain, which improves the utilization efficiency and liquidity of assets, disperses the risk index of assets, provides investment diversification, and has great potential in the future.
Others: AI, social networking, Ethereum ecology, decentralization concept, etc.
As the market progresses, you can pay attention to the investment directions of leading investment institutions such as Binance and A16Z.
Bull market peak signal:
The main force released a lot of positive news, the media outside the circle rushed to report it, celebrities from all walks of life were collectively bullish, new retail investors entered the market to chase high prices, and the main force took the opportunity to sell a large amount of goods and cash in.
The increase is too high, the bubble is too big, new funds can hardly maintain the bubble, and the volume is insufficient, so it will naturally fall.
The United States has stopped or slowed down its monetary easing measures and launched a new round of interest rate hikes and balance sheet reduction plans.
This bull market will end in the second half of 2025.
Finally, I wish everyone who likes and follows this thread will become rich in the bull market of 2025!