Why was the bull market in the past more violent than it is now?
Market trends have always been the focus of attention. Whether the market will rise or fall next is undoubtedly the most concerned question in the minds of current investors. Why was the bull market so fierce in the past, while the current bull market seems weak? The reasons are worth our in-depth thinking.
As of today, the big cake has been fluctuating sideways at a high level for nearly two months. This trend has made many people begin to doubt the big cake. However, as for the question of whether the big cake will rise or fall next, my view is the opposite of the pessimistic market sentiment. Pessimism can inject vitality into the market, because the market situation often gradually unfolds in the collision of multiple views. If there are no bearish people, the main funds will find it difficult to absorb chips and control the market, and the big cake will not be able to achieve a breakthrough in the rise.
The current market situation is full of signs of retail investors being destroyed, and a typical short structure is forming, but the market has not fallen sharply or risen significantly, and this state will continue for some time. At the same time, many new features have emerged in the market. The introduction of ETFs has reduced the volatility of the entire currency circle. Compared with 2021, the price of altcoins should have been cut in half many times, and the price of Bitcoin should have dropped to 50,000 or even 40,000 US dollars. However, the current altcoin has only experienced a halving, and Bitcoin is still stable at around 60,000 US dollars.
Therefore, I firmly believe that the big cake will continue to rise. No matter whether you are currently short or full, and which currency you hold, please stick to your beliefs and endure loneliness, so that you can keep the prosperity.
There are several reasons why the past bull market was able to rise rapidly, while the current bull market seems weak.
First, in the past currency market, the scale was relatively small, and the currencies selected by investors were relatively concentrated.
Therefore, once a certain currency is favored by the market, its price can soar rapidly.
Today, the market scale continues to expand, various new currencies have emerged, and investment options have become diversified, resulting in the dispersion of market funds, making it difficult to form a large-scale rising market. Secondly, in the past, the circulating market value of currencies was relatively low, and a small amount of funds could drive a large increase. Today, the market capitalization of many mainstream currencies is already huge, and more funds are needed to drive their prices up.
In addition, the bull market track in the past was relatively limited, and investors were more likely to reach a consensus to drive the market up.
Now, various sectors and concepts have emerged in the currency circle, and investors are distracted and it is difficult to form a joint force. In addition, the number of market participants has not grown enough, and many people still lack understanding of Bitcoin and blockchain, which limits the market's upside.
Finally, from the perspective of the project party, today's project party pays more attention to short-term interests and lacks long-term vision and pattern, which also affects the healthy development of the market.