Last night, U.S. stocks dragged Bitcoin down, and Bitcoin dragged crypto altcoins down, leaving the market in a mess.
As for the reasons for this price crash, many analysts and KOLs have summarized them on the Internet, saying all kinds of things. For example, some say that the decline was caused by the Federal Reserve policy and the strengthening of the US dollar, some say that the decline was caused by the outflow of ETF funds, and some say that the decline was caused by Trump’s tariff policy... Those who are interested can search and find out by themselves.
Anyway, no matter whether the market falls or rises, we can always see various well-founded reasons and analyses afterwards.
After experiencing a bull market, we look back and suddenly realize that Bitcoin’s share of the currency circle has reached 61%, reaching a four-year high. The secret of not making money may lie in these data. We have been looking forward to round after round, but in the end only Bitcoin remained at a high level.
Why is this round of bulls so weird?
The first thing must be the liquidity issue. Once upon a time, the liquidity of the cryptocurrency circle was super good, and there were always various opportunities to appear in innovative projects. However, this round obviously has no innovative content. VCs are sharpening their knives in front, and conspiracy groups are gathering to reap profits in the back. In the end, Trump used two presidential coins to completely declare the exhaustion of liquidity in the cryptocurrency circle. Without liquidity, this is the scene we see now. The decline is unimpeded, and it doesn't take too many chips to create a big hole.
The lack of innovation is the essence of this round of exhaustion. We can see that except for last year's inscriptions and AI AGENT, there are almost no new narratives. From a broad perspective, these two seemingly innovative things have not been well implemented so far, so in essence we can still attribute them to MEME. MEME coin is an innovation of the last bull market, not this round.
No innovation means mutual cutting in the market. Although it has attracted a lot of off-market funds, it still cannot cover the crazy influx of various pig-killing projects. Sometimes I often think that there are even more practitioners in this industry than leeks, and I really don’t know who will cut whom in the end.