Preparing for the bull market's primary uptrend

Kamal531

Preparing for the bull market's primary uptrend, my phased considerations for this cycle.

Introduction

Last week, BTC reached a historical high against the US dollar, indicating the formal stage of this bull market. Compared to the rebound and recovery from the bear market bottom, the sentiment in the formal stage of the bull market will further heat up, and the volatility will become more intense.

There are some common characteristics at the beginning of each bull market, such as:
- Transition from BTC leading the market to altcoins leading the market, resulting in a decrease in Bitcoin dominance.
- More violent increases in various currencies.
- Becoming favorites of social media and search engines, with rapid increase in public attention.

In this article, the author attempts to logically deduce the possible differences between this cycle and past cycles and presents their own thoughts and strategies.

This article represents the author's phased thinking as of the time of publication and may change in the future. The views expressed are highly subjective and may contain errors in facts, data, and reasoning. They should not be used as investment advice, and constructive criticism and discussion from peers are welcomed.

The following is the main content.

Driving factors of the crypto bull market and Alpha track bull market driving factors

After BTC's market value reached a certain scale, looking back at the past three cycles, bull markets have been driven by multiple factors, including:
- BTC halving (expectation of supply and demand adjustment), with this cycle's halving expected in April.
- Loose or expected loose monetary policies, with the market having reached a consensus that the peak interest rate level is past and there are high expectations for a decrease in the coming quarter.
- Loose regulatory policies, as reflected in this cycle by updates to US accounting standards allowing crypto assets to be reflected at fair value in the financial statements of listed companies, and the SEC's lawsuit against Grayscale leading to the approval of ETFs.

- Innovation in new asset models and business models.

This cycle has already possessed the first three points mentioned above. In each bull market cycle, the Alpha track
At the same time, in each bull market cycle, the most significant increases are seen in the new species born (or bursting out for the first time) in that cycle. For example, during the 2017 bull market, ICOs were prevalent, and the platforms (smart contract public chains) such as Neo and Qtum saw the highest increases; while in 2021, the most significant increases were seen in DeFi, GameFi & Metaverse, and NFT assets. However, in this current bull market development, there hasn't been the emergence of new asset models or business models similar in scale to smart contract platforms or DeFi in the previous two bull market cycles.

Currently, in DeFi, GameFi, NFT, and Depin, whether old or new projects, there hasn't been much evolution in product forms compared to the previous cycle. In simple terms, they are all "old concepts."

The relatively new species appearing in this cycle mainly include:

- BTC ecosystem: Assets represented by ORDI and node monkeys, and Layer 2 projects primarily based on BTC.
- Web3 AI projects: Including distributed computing projects

Iravan774

This also requires more thinking.

Jatin255

NFT and the Metaverse are actually closely related.

Jiger955

With NFTs, there is the Metaverse, that's the future.

Shri

I didn't realize NFTs could be invested in this way; I really can't keep up with the times.