When I woke up, $BTC $ETH had fallen by two or three points, and the copycats were bleeding. An obvious feature of this round is that funds are concentrated in the leading companies, and the strong will always be strong, while the rest are constantly being drained and smashed, and there is no hope of rising. This is obviously different from the previous round of blooming flowers.
Why is this?
I think there are two reasons:
1. Market funds are still short
2. There are too many junk coins, diverting too much funds
The Fed has not actually cut interest rates, and has maintained a high interest rate. Although there is an expectation of a rate cut, it is just an expectation, and funds are not actually loose. Although BTC ETFs have brought a lot of funds, they are only transferred in Wall Street accounts. These funds are not currently circulated on the chain, nor have they overflowed to other currencies except $BTC
In addition, there are too many new coins on the market, and they have huge market capitalizations at the beginning, which sucks blood seriously. When it is spread out, there is only endless unlocking and smashing of the market, and it is rare to see a win-win scenario of pulling up the market and making money together. This also indirectly explains why retail investors hate vc coins and embrace meme coins in this round.
Moreover, there is no obvious innovation in this round of blockchain. Staking is just another layer of baby. Inscriptions seem to be just a forced carnival of concepts in a small circle. Gamefi, socialfi, nft, there is no sign of breaking through to form real mass adoption. Compared with AI, it is really a bit of a clear difference.
But are there any opportunities to make a comeback? Half a year ago, I would have said yes, but now, I am a little hesitant. When a market becomes a cash machine for institutional investors, and retail investors are left with nothing to gain, then in the end, there is no other possibility except the consequence of exhausting all resources.
I hope this won’t be the case. After all, apart from blockchain and cryptocurrency, there really aren’t many ‘casinos’ left for ordinary people to turn their fortunes around.
