The bull market from last year to this year was purely artificially induced Bitcoin's independent bull market.
Cryptocurrency is the thermometer of liquidity. What do you mean by thermometer? When you take your 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 just breaks.
Alter Asset's sensitivity to liquidity is like this. During tightening, even a slight tightening makes cryptocurrencies very difficult; once liquidity is released, they immediately soar.
The bull market in 2021 was relatively normal, with flooding liquidity and soaring altcoins. Not just cryptocurrencies, almost all assets, regardless of size, like sports cards, sneakers, and virtual game equipment, skyrocketed.
This year, there is obviously no liquidity, but Bitcoin is still rising, and only Bitcoin is rising.
Because cash is being forcefully pulled. Other assets are being ignored. This is not a normal situation. When the liquidity floods in, money will find assets on its own, and all assets will be repriced, not just Bitcoin.
So, this round of Bitcoin bull market is an artificial bull.
Who is specifically responsible? Because of Donald Trump. He is Pro Crypto, so there are such expectations, and asset prices were driven up.
After he took office, it didn't seem very Pro; the Federal Reserve ignored him, so it immediately dropped back to over 70,000. Now he's pressuring Powell to release liquidity, so it has risen back a bit.
The current altcoins are so sluggish that many assets that have survived two or three cycles are at historical lows, and many coins from the last liquidity release have dropped over 95%—Ethereum is also bearish like a grandchild.
In the last round, tokens worth over 10 billion dollars were everywhere, so many big projects had valuations exceeding 1 billion; now they are all losing. This round, a meme worth several hundred million dollars is considered a big deal. Now everything has to be repriced, and the valuation of new coin projects on Binance has shrunk to 1/10 of the original.
This is a bear market with extremely shrunk liquidity. If Bitcoin is at 30,000 now, everyone can understand. But now Bitcoin is at 95,000, and some people are confused.
Of course, some say that the altcoin bear market is because the altcoins are trash, and people are no longer buying them.
To be honest, when there is liquidity, trash is also treasure; when there is no liquidity, treasure is also trash. Money will find assets on its own, and when the liquidity floods in, the market is crazy.
So, the real bull market will have to wait until Powell compromises and releases the liquidity.
