The bear market never existed, but it is coming

Some people are shouting about a bear market every day, but in fact the current cryptocurrency market is a different picture.

I am reluctant to call every period of decline a bear market. Rather, I prefer to call it a stable and volatile market, a correction, a panic sell-off, etc., but I rarely use the word "bear market".

It’s just…I’ve never really felt the bear market in the last few months. Yes, despite everything that’s been going on in the world.

In fact, the development of the crypto field is currently going against the real world. Recently, Andre Cronje, a god-like figure in the Defi field, decided to leave temporarily, which also caused a slight decline in my asset allocation. Almost all the project tokens related to him in the field are falling, and almost every token in the Defi field is related to him.

But by crypto market standards, this is usually just a sideshow.

We only know how to give CX to local dog projects.

But people in the crypto space are never short of "creativity", and this state of boredom won't last long. When everyone is in a daze, a macro narrative is needed to attract everyone's attention.

So the crypto space naturally introduced another strongman, the founder of Terra, as well as its LUNA token, UST stablecoin (market cap of $15 billion), etc. In addition, it also released a series of.

In a Twitter Space, he told his audience that he plans to buy $10 billion of Bitcoin on the market as a treasury reserve, which has led to comparisons with Michael Saylor. The money that founder Do Kown will use to buy is his own UST stablecoin, and he can eventually issue new tokens as he pleases. ("Printing" is a simple term I use. Here are the details on how UST/LUNA works.)

The news sent the cryptocurrency world into a frenzy. 10 billion is a pretty crazy number. And some speculated that it could easily push Bitcoin to its $100,000 price target.

In addition, there have been several billion-dollar buys in the market over the past few days. People are frantically trying to interpret these random market phenomena. But no matter what, it has once again ignited the market's interest and the price of Bitcoin has also risen wildly.

The vitality of the crypto space depends largely on narrative, and there is no shortage of narrative in the crypto space, despite the market's unfavorable price performance in the past period of time.

Especially lately, as prices have risen, these things have started to feel more and more disconnected from the real (boring) world.

We already know that the “inflation hedge” narrative is a bit outdated, just like the “cryptocurrency as a privacy and sanctions circumvention tool” narrative.

Now more and more narratives are becoming more focused on the projects themselves.

Deeper in the crypto space, new projects continue to be launched. Older projects get revamped as developers offer new products, updates, announce partnerships, or expand.

In short, there are so many exciting things happening in the crypto space at the same time, and this is definitely not something that would happen in a bear market.

New (institutional) funds continue to flow in

One of the biggest reasons I refuse to be bearish is that traditional financial (TradFi) institutions are increasingly interested in crypto, even though the real world is not doing so well (world wars, inflation, recession), but on the other side of the world, all I hear is the following news:

Earlier this month, Bain Capital, a $155 billion firm, announced their cryptocurrency-specific fund. A few days ago, Ray Dalio’s famous hedge fund company Bridgewater Hedge was rumored to be launching a cryptocurrency fund for the first time.

And today I heard another piece of news,

If you see that there are big funds around that are willing to spend money on various projects related to the crypto field and web3, there is almost no possibility that this market will go bearish.

The fact that people working at web2 companies like Facebook and Google are fleeing to web3 is another proof that we may be at the beginning of a technological and cultural transition, rather than the end.
The TradFi world is now even more useless.
I remain bullish on crypto as I am bearish on every other market I know of, especially traditional finance.
To me, TradFi is a remnant of the old world. Its gradual collapse is frustrating to many people. It will soon become irrelevant, just like everything that is left behind by the times.
However, occasionally TradFi still surprises me because it is surprisingly ridiculous about many things, and what is happening in the nickel trading market is the latest big joke.

In short, this is what happened.

A very wealthy man who was losing money in nickel trading (very wealthy) borrowed money from the world's largest banks, such as Goldman Sachs. Instead of closing his positions and paying what he owed, he added more positions, and the banks let him borrow more money, until nickel reached a high price ($100,000 per ton), and he seriously affected the security of the world economy for his own benefit.
So the bank held a meeting and the exchange decided to shut down trading for two weeks, canceling everyone else's trades so that the short run would never happen.
All of this is just to protect a rich man.
If you are annoyed, I can tell you that many people are too. And this is why we are bullish on cryptocurrencies and DeFi, because it is actually the only free market left in the world. An incident of a powerful person being "protected" will never happen in the crypto field. Here, whales and leeks are pulled by market forces.
This is what institutional money feels, and that’s why money is flowing in. The world of TradFi is too broken and completely beyond repair. If the SEC can’t protect ordinary citizens from being treated unfairly, whether it’s nickel trading or SPACs, then this market is ultimately doomed to fail.

Rich people still make up the largest share of stockholders in the U.S. The housing market is another joke created by TradFi.
There is nowhere else for ordinary people to take refuge except in the crypto space.

Because it really is the future.

So what does that say about the future?

Author:Ann

Compiled by: Chen Zou