Title: There are 4 phases of a bull market. We just entered stage 2
Author: Jason Yanowitz
Translator: Zombit
Content:
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Phase 1: Rebirth
Phase 2: Excitement (We just entered phase 2)
Phase 3: Euphoria
Phase 4: Disconnection
The exhaustion of the bear market still lingers. The flickering flame of hope appears and disappears intermittently. Some new narratives emerge, but they are quickly smothered by indifference. Your friends and the media are still fixated on explosive (negative) news about the bear market.
Meanwhile, prices are quietly rebounding. Your investment, which had fallen 90% during the bear market, suddenly increases by fivefold, but you hardly feel it because you are still down 50% from the peak. However, only deep cryptocurrency enthusiasts who have experienced two or more cycles will realize that the bull market has already begun; most people still do not believe it is a bull market.
We are currently in this stage. The bear market has officially ended, and your coins are approaching or even surpassing their all-time highs. Everyone in the cryptocurrency community finally realizes that we have officially entered the bull market. Interestingly, your non-crypto friends have not sent you any text messages yet. You feel both excited and anxious as your assets are growing rapidly, but you feel like you don’t have enough coins.
Your company starts expanding, and you start ordering guacamole at Chipotle again. Life is good; all your cryptocurrency friends are making money. But this is just the calm before the storm.
All your assets have surpassed their all-time highs. Previously, there was a new narrative every week; now, there is a new narrative every day. The primary market starts going crazy. Venture capital firms begin announcing the formation of new $500 million funds, bypassing due diligence and rushing to deploy money. Every week, new companies announce that they have raised $100 million. Cryptocurrency once again becomes a mainstream topic.
Forbes, Bloomberg, CNBC… they all love reporting on cryptocurrencies. And then something strange happens: Fortune 500 companies start buying Bitcoin, athletes and artists join in. Cryptocurrencies start permeating mainstream culture, and everyone starts believing that it will keep rising forever. Delusional thoughts start seeping into investment decisions.
This stage can also be described as madness. Everything is irrational. You have more money than you ever imagined in your entire life. One of your friends, who knows nothing about cryptocurrencies, launches a token overnight, and his net worth reaches hundreds of millions.
A cryptocurrency industry insider buys a sports team. Justin Bieber joins a decentralized social platform. Cryptocurrency companies start throwing billions of dollars into marketing. Unfortunately, all of this is just a bubble. If you are not careful and cautious in this stage, your arrogance and laziness will lead to tragedy in the next two years.
So fasten your seatbelt, the next 18 months will be crazy. You will experience unprecedented highs, but make sure to enjoy the process occasionally.
