The bull market from last year to this year is purely an artificially induced independent Bitcoin bull market.
Cryptocurrency is the thermometer of liquidity. What does thermometer mean? When you measure body temperature, at 35 degrees, you can't even see the line on the thermometer; at 37 degrees, it's in the normal range; at 39 degrees, the thermometer will burst.
Alter Asset's sensitivity to liquidity is just like this. During tightening, even a slight tightening makes it difficult for cryptocurrencies; once liquidity is released, they immediately soar.
The bull market wave in 2021 was a relatively normal bull market, with a flood of liquidity and altcoins soaring. Not just cryptocurrencies, almost all assets, whether large or small, such as sports cards, sneakers, and virtual game equipment, have increased several times.
This year, there is obviously no liquidity, but Bitcoin is still rising, and only Bitcoin is rising.
Because there is cash forcibly pulling. No one is managing other assets. This is not a normal state. Because when liquidity floods in, money will find assets on its own, and all assets will be repriced, not just focused on Bitcoin.
So this round of Bitcoin bull market is an artificial bull.
Specifically, who is responsible? Because of Trump. He is Pro Crypto, so there are such expectations, and asset prices have been manipulated upward.
After he took office, he didn't seem very professional, and the Federal Reserve ignored him, so it immediately dropped back to over 70,000. Now he is pressuring Powell to release liquidity, so it has risen back a bit.
Now the altcoins are so sluggish, many assets that have survived two or three cycles are at historical lows, and many coins released during the last liquidity phase have dropped by over 95%, with Ethereum also bearish like a child.
In the last round, tokens worth over 10 billion dollars were everywhere, so many large projects had first-level valuations exceeding 1 billion, and now they are all in the red. This round, a meme worth several hundred million dollars is considered a big golden dog. Now they all need to be repriced, and the valuations of new projects on Binance have shrunk to 1/10 of what they were. In the past, any random project had a valuation of hundreds of millions; now having tens of millions is a big deal.
This is a bear market with extremely shrinking liquidity; if Bitcoin is 30,000 now, everyone can understand. But now Bitcoin is 95,000, and some people are confused.
Of course, some say that altcoin bears are due to altcoin garbage; no one is buying it anymore.
To be honest, when there is liquidity, even garbage is treasure; when there is no liquidity, treasure is also garbage. Money will find assets on its own, and when the floodgates open, the market goes crazy.
So, a real bull market will have to wait until Powell compromises and releases liquidity.
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