The cryptocurrency industry has a four-year cycle with five stages:
Phase 1: The market rebounded from bottoming out (late last year to a few months ago) BTC finally started to rise continuously when retail investors expected it to fall even lower, excellent top copycats ran at multiples, and hot money quickly switched between various narratives
Phase 2: The market grows in doubt (currently) BTC finally breaks through the consolidation area, the short positions are constantly cleaned up, the low-market-cap and low-liquidity altcoins are quickly pulled up, on-chain transactions show a lot of profit opportunities, and projects with good fundamentals are sought after
Phase 3: The market begins to FOMO (weeks to months later) BTC breaks through the psychological market price of $50,000, and the altcoins are sucked out of the market and stagnate or even fall back. BTC continues to break through the previous high at a pace beyond people's imagination. Then funds flow back to the altcoins again, and the increase in ETH leads the altcoins to soar. The market is extremely optimistic about the top projects with a certain narrative. The projects with excellent token design, strong flywheel effect and soaring on-chain data have the most exaggerated increases.
The fourth stage: Market climax (sometime in 2025) The aunties selling vegetables are recommending you the currency, and everyone is crazy about the good opportunities in the currency circle. A lot of money begins to flow into MEME projects with simple logic and low-quality projects with extreme marketing. Cherish this very short stage, which is also the best time to sell your copycats.
Phase 5: Market collapse, wealth is transferred once again, and blockchain is deemed to be a scam!
