Mastering the Cycle of Wealth in Web3
The crypto market moves in waves, and each bull run follows a fairly predictable pattern — a dance of capital that starts with Bitcoin and flows into altcoins, creating life-changing opportunities along the way.
Understanding these 4 key phases of a bull cycle can help you ride the wave instead of getting swept under it. Based on the insightful chart by @CryptoGuider, here’s a deep dive into how the cycle unfolds and what smart investors do in each stage. 🌊📈
🟦 Phase 1: Bitcoin – The King Awakens 👑
Every bull market begins with Bitcoin ($BTC ) — the flagship of crypto. Capital first flows into BTC as it regains strength, breaks through resistance levels, and reclaims headlines across global media.
🔹 What happens:
🚀 BTC begins a strong upward trend.
📰 Media coverage spikes, reigniting retail and institutional interest.
📊 Bitcoin dominance rises sharply.
📍 Phase Overlap:
As BTC pumps, early capital starts exploring opportunities in Ethereum (ETH). $ETH ETH may lag behind at first but slowly starts to catch up — signaling the beginning of something bigger.
🟩 Phase 2: Ethereum – The Flippening Narrative ⚡️
In this phase, Ethereum begins outperforming Bitcoin in percentage gains. The crypto community starts buzzing about the potential of a “flippening,” where ETH might surpass BTC in market cap. This phase reflects growing confidence in the broader Ethereum ecosystem, including DeFi, NFTs, and smart contracts.
🔹 What happens:
🔥 ETH rallies faster than BTC.
🧠 Institutional investors start looking beyond Bitcoin.
🗣 Talks of “ETH > BTC” gain traction in the media and on Twitter/X.
📍 Phase Overlap:
Money starts to flow into large-cap altcoins (like $SOL , ADA, LINK), setting the stage for broader market participation.
🟨 Phase 3: Large Caps – The Expansion Begins 🌍
Momentum shifts from ETH into high-quality large-cap altcoins. These projects often have strong ecosystems, big communities, and mainstream appeal. This is when the crypto market starts heating up for real.
🔹 What happens:
💎 Large caps go parabolic.
🧩 Ethereum continues to shine, but others join the party.
🛒 Big buy-ups across the board as investors diversify.
📍 Phase Overlap:
Some mid- and low-cap gems with strong fundamentals start showing powerful rallies — signaling the approach of the final phase.
🟥 Phase 4: Altseason – The Mania Peaks 🧨🎉
Welcome to Altseason, the most explosive — and often dangerous — phase of the cycle. At this point, everything pumps. From memecoins to microcaps, the entire market goes vertical, driven by euphoria, hype, and widespread FOMO.
🔹 What happens:
🌈 Even obscure altcoins are seeing 10x–100x runs.
😂 Memes are everywhere — think $DOGE, $PEPE, $WIF.
💬 Crypto dominates conversations on TikTok, X, Reddit.
🎯 Fundamentals no longer matter — only hype and virality.
🚨 Caution: This is where smart investors take profits, because unsustainable parabolic growth often signals a coming market top.
💡 Pro Tips for Navigating the Bull Cycle 🧭
🎯 Be strategic with your allocations:
Don’t ape into hype. Use each phase to gradually rotate profits and manage risk.
🕵️♂️ Do your own research (DYOR):
Focus on projects with strong fundamentals in early phases, and be extra cautious during peak euphoria.
🧱 Have an exit plan:
The market always corrects — sometimes violently. Decide your take-profit levels in advance.
📚 Stay educated and calm:
Market sentiment can be overwhelming. Stick to your plan and avoid emotional decisions.
✨ Final Thoughts
The crypto market isn’t just about technology — it’s about psychology and timing. These four phases offer a blueprint for understanding the flow of capital during bull runs. Whether you're new to crypto or a seasoned investor, knowing where we are in the cycle can be the difference between massive gains and missed opportunities.
🛠️ Prepare during the quiet times. Execute during the noise. Exit during the mania.
📌 Credit: Chart by @CryptoGuider
📝 Disclaimer: This is not financial advice. Always do your own research before investing.
