THIS FOMC Could SHOCK Crypto! [How To Prepare]
Crypto Banter
Introduction to the Current Market Situation
The current bull market is being driven by institutions and specific cohorts, with all inflows coming into Bitcoin via ETFs and Michael Saylor's investments. Retail investors have been shaken out, and the market has been brutal, with most altcoins underperforming against Bitcoin.
Reasons for the Current State
The main reason for this situation is that it's a Bitcoin-only bull market. Other altcoins have not performed well, with some being in a bear market since 2021. The advanced decline of the top 100 tokens shows that they have been in a bear market, and the crypto market cap excluding the top 10 tokens has been going down since January 2020.
Possible Explanations
There are three possible explanations for this situation:
- We could be early: We might still be in phase one of the bull market, and the money hasn't flowed into altcoins yet.
- This is like every other cycle: The market usually has a flushout before the altcoin season can begin, and we might be in that phase now.
- Retail doesn't matter: Institutional flow is so big that it's only going into Bitcoin, and retail money can't compete with it.
Advice for Investors
To navigate this situation, investors can:
- Be patient: Wait for the market to turn, as it has in previous cycles.
- Become a trader: Use tools like Banter Bubbles to trade and manage risk.
- Stay in the top 150-200 tokens: Avoid investing in lower-ranked tokens, as they are less likely to get attention and volume.
- Look for tokens with volume and fundamentals: Invest in tokens with strong fundamentals and trading volume.
Conclusion
The current market situation is challenging, but by being patient, becoming a trader, staying in the top 150-200 tokens, and looking for tokens with volume and fundamentals, investors can navigate it. It's also important to consider alternative options, such as trading with other people's money through prop trading firms like Bitfunded.