Hodlx Guest Post Submit your message
The cryptocurrency market is again under the spotlight while we are witnessing a new Taurus unfold.
However, the cycle is evolving this time with unique characteristics that distinguish it from the previous market increases.
From the emergence of the Bitcoin ETF to the rise of even Solana based in Solana, this Bull Run reflects a change in the behavior of investors, the regulatory feeling and the dynamics of capital flows.
The bull familiar model with new variables
Historically, Crypto Bull Runs follows a familiar cyclic model. The initial phase begins with the domination of Bitcoin (BTC), where liquidity accumulates in BTCleading its price upwards.
Once Bitcoin reaches a peak or enters a consolidation phase, capital begins to flow into altcoins, triggering a secondary rally.
Finally, as market conditions change, capital leaves cryptographic assets, leading to a correction at all levels.
However, in my opinion, two key factors make this bull fundamentally differently.
1. ETF Bitcoin and institutional adoption
The approval of the Bitcoin Spot ETF modified the liquidity flows, creating an alternative investment channel which competes with traditional Altcoin rotations.
Instead of capital that automatically bikes in altcoins, ETFs now offer institutional investors a regulated path to acquire Bitcoin exposure, which could have an impact on the speed and intensity of the Altcoin season.
2. Macroeconomic and political influences
The American presidential election introduced an unexpected variable into the cryptographic equation.
Donald Trump and the recent pro-Crypto position of his administration Associated with discussions on the integration of bitcoin in the strategy of the American federal reserve have created a wave of optimism.
Regulatory clarity and political support could have a significant impact on institutional trust and long -term adoption trends.
From my point of view, at present, the market is still in the Bitcoin accumulation phase. The Altcoin season has not yet started, but the key indicators suggest that it is on the horizon.
Historically, when the BTC enters a consolidation phase, liquidity flows into altcoins, triggering rapid price increases.
A correction of three to five% of the BTC historically sparked a drop of 30 to 50% of certain altcoins, revealing the continuous sensitivity of the market to Bitcoin price movements.
The role of same in the current bull
One of the most striking developments in this bull cycle is the dazzling rise of the same especially those on Solana.
With the Market capitalization of even So Solana over $ 20 billion in January, their impact on the wider cryptography ecosystem cannot be ignored.
Evencoins plays two crucial roles on the market.
1. The integration of new market players
Even serves as an entry point for new investors, especially on low frequency channels like Solana (GROUND), where the transaction costs are minimal.
Their accessibility and their viral attraction make it an ideal starting point for retail investors who seek to explore cryptographic space.
2. Soutilation of liquidity and market activity
Samecoins generates a significant volume of trading, increasing overall liquidity on the market.
Their speculative nature feeds demand through the DEFI platforms (decentralized funding) and exchange, arousing interest in the cryptographic ecosystem.
Despite their popularity, the same remains one of the most risky asset classes in cryptographic space.
Their value is entirely motivated by the threshing media, community engagement and speculative demand, rather than by intrinsic utility. Their life cycle is short, which often lasts less than a year, and price fluctuations can be extreme.
In some cases, a window of 10 to 15 minutes can cause two -digit percentage oscillations, making them very volatile investments.
Trump and Melania Political hype or viable active
The intersection of politics and crypto gave birth to political theme mecoins such as Trump and Melania.
Although these tokens take advantage of the brand image and the narrative momentum, they follow the same fundamental model as the other same Rely on community speculation and media threshing cycles rather than inherent inherent usefulness.
What distinguishes these tokens from other same is their ability to take advantage of real figures for the speculative momentum. However, this creates a double -edged sword for the cryptography market.
On the one hand, these assets generate a high commitment and a volume of trading, attracting new participants in space.
On the other, they contribute to an unpredictable and often deceptive market environment, where many investors especially newcomers undergo losses due to speculation focused on media rather than informed decision -making.
A key concern is the concentration of the tokens supply, which has a significant impact on market dynamics. Take Trump as an example.
- Power supply 200 million Trump
- Maximum power supply 999.99 million Trump
- Private investor holdings Only 20% of the total offer
- Supply controlled by the team An 80% amazing
This means that the majority of Trump’s offer is controlled centrally, giving its team a significant influence on price movements and liquidity.
Investors who fail to analyze the distribution of tokens are often victims of providing manipulations, unexpected sales and liquidity pressures, exacerbating volatility more.
Although these politically motivated tokens can serve as short -term speculative instruments, their long -term sustainability remains questionable.
More importantly, their impact on the reputation of the cryptography market is deep.
When retail investors undergo losses due to opaque tokenomic and market manipulation, it strengthens skepticism as to the legitimacy of the crypto as a whole.
In the end, politicians are speculative assets with a high risk and high reward profile.
Investors should approach them with extreme caution, armed with a clear understanding of the tokens supply, team control and wider conditions of the market stimulating their price movements.
Ahead The next phase of the Crypto Market
While this bull continues to take place, several key developments will shape the trajectory of the market.
- Liquidity movements based on Bitcoin ETF The interest in the ETF slows the rotation of altcoin capital
- Regulatory and political quarters Will the field of American elections influence feeling and adoption?
- Same durantible Will even maintain the domination of the market or will media fade when will investors are looking for assets with greater utility?
Although Bitcoin remains the foundation of this bull cycle, the possible change towards altcoins and speculative assets is inevitable.
Investors must remain strategic, including both the risks and opportunities presented by emerging trends.
Crypto remains a very volatile and rapidly evolving ecosystem, where informed decision -making is the key.
Whether BTC, altcoins or even, the ability to adapt to market cycles will define success in this constantly evolving landscape.
Oleksander Miroshnychenko is the CTO to The one And an expert in high load systems with strict response times. With more than 25 years of experience in development and more than six years in crypto, he built a Dex, Cex and a blockchain based on EVM.
Follow us Twitter Facebook Telegram
Warning: Opinions expressed at Daily Hodl are not investment advice. Investors should make their reasonable diligence before making high-risk investments in bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and that any loser that you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and the Daily Hodl is an investment advisor. Please note that the Daily Hodl is participating in affiliation marketing.
Image generated: Midjourney