Title: There are 4 phases of a bull market. We just entered stage 2
Author: Jason Yanowitz
Translator: Zombit
Table of Contents
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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 flame of hope appears and disappears intermittently. Some new narratives emerge, but are quickly stifled by apathy. Your friends and the media still focus on the explosive (negative) news of the bear market.
But at the same time, prices are quietly rebounding. Your investment, which fell 90% during the bear market, suddenly rises fivefold, but you hardly feel it because you are still down 50% from the peak. However, only deep cryptocurrency enthusiasts who have experienced more than two cycles will realize that the bull market has begun; most people still don’t believe it is a bull market.
We are currently in this phase. The bear market has officially ended, and your coins are nearing their all-time high prices, with some even surpassing them. Everyone in the cryptocurrency community finally realizes that we have officially entered a bull market. Interestingly, your friends outside the circle have not sent you any texts yet. You feel both excited and anxious, as your assets are growing rapidly, but you feel that you don’t have enough coins.
Your company starts to expand, and you start ordering guacamole at Chipotle again. Life is good, and all your cryptocurrency friends are making money, but this is just the calm before the storm.
All your assets have surpassed their all-time high prices. Previously, there was a new narrative every week, but now there is a new narrative every day. The primary market is becoming crazy. Venture capital firms are announcing the formation of new $500 million funds, skipping due diligence and rushing to deploy capital. Every week, new companies announce that they have raised $100 million. Cryptocurrencies are once again a mainstream topic.
Forbes, Bloomberg, CNBC… they all love reporting on cryptocurrencies. Then something strange happens: Fortune 500 companies start buying Bitcoin, and athletes and artists join in too. Cryptocurrencies begin to permeate mainstream culture, and everyone starts to believe that they will always rise. Delusional thoughts start to seep into investment decisions.
This phase can also be described as madness, where everything is irrational. You have more money than you ever imagined in your lifetime. One of your friends, who knows nothing about cryptocurrencies, launches a token, and overnight 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 spending billions on marketing. Unfortunately, all of this is fleeting. If you are not careful and cautious during this phase, your arrogance and laziness will lead to tragedy in the next two years.
So, buckle up, the next 18 months will be insane. You will experience unprecedented highs, but make sure to occasionally enjoy the ride.
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