The bull market from last year to this year is purely an artificially induced independent Bitcoin bull market.
Cryptocurrency is a thermometer for liquidity. What does it mean to be a thermometer? When you measure your temperature, at 35 degrees, you can't see the thermometer's line; at 37 degrees, it's in the normal range; at 39 degrees, the thermometer bursts.
The sensitivity of Alter Asset to liquidity is like this. During tightening, even a slight tightening makes cryptocurrency very hard to bear; once liquidity is released, it skyrockets immediately.
The bull market in 2021 was a relatively normal bull, with liquidity flooding in and altcoins soaring. Not just cryptocurrency, almost all assets, regardless of size, such as sports cards, sneakers, virtual game equipment, all multiplied in value.
This year, there is obviously no liquidity, but Bitcoin is still rising, and only Bitcoin is rising.
Because cash is forcibly pulling it up. No one is managing other assets. This is not a normal state. When the floodgates open, money will find assets on its own, and all assets will be repriced, not just focusing on Bitcoin.
So this round of Bitcoin bull market is an artificial bull.
Specifically because of whom? Because of Donald Trump. He is pro-Crypto, so there are such expectations, and asset prices have been driven up.
After he took office, it didn't seem very pro. The Federal Reserve ignored him, so it immediately fell 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. Many coins from the last round of liquidity have dropped over 95%, and Ethereum is bear-like like a grandson.
In the last round, there were numerous tokens valued at over a billion dollars, so many major projects had first-level valuations exceeding 1 billion. Now they have all lost. This round, a meme worth a few hundred million is considered a big deal. Now everything needs to be repriced; new projects listed on Binance have seen their valuations shrink to 1/10 of the original.
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 people say that the altcoin bear market is because of the altcoin trash, and everyone is not buying it.
To be honest, when there is liquidity, even trash is treasure; when there is no liquidity, treasure is also trash. Money will find assets on its own. When the floodgates open, the market is crazy.
Therefore, the real bull market must wait for Powell to compromise and release liquidity.
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