Signs That The Market Is About To Enter A Down Phase

We are in the best days of 2023 after a 2022 full of negative emotions. Bitcoin has continuously reached ATH in 2024 alone and with it a series of new trends have been born. So the question now is whether there are signs that the market is about to enter a decline or not. Everyone, let’s find out in the article below.

However, before going into the article, I would like to clarify that the article is based on personal opinion and should absolutely not be considered investment advice or a call to action. Please consider this article only as reference content, nothing more and nothing less!

Positive Information In The Current Market

Bitcoin ETF Spot plays the main traction role

It cannot be denied that Bitcoin ETF Spot and the forces in TradFi, especially BlackRock, are having a direct impact on the entire Crypto market. Up to now, we have a lot of positive and optimistic information that maybe in the early days of 2024 – the pivotal year of the Crypto market with the Bitcoin Halving event, there will be the first Bitcoin ETF Spot. .

People believe that Bitcoin ETF Spot will create strong growth momentum for the Crypto market in general and Bitcoin in particular because then all Americans can access Bitcoin and Ethereum legally, without strings attached. especially without worrying about security, storage,…

In the latest information, the SEC – United States Securities Commission, is said to be discussing with Black Rock investment fund the final steps to launch Bitcoin ETF Spot and January 2024 is also the final date. that the SEC must answer and cannot delay any more.

Besides Bitcoin ETF Spot, Ethereum ETF Spot is also expected to be launched in 2024 when Black Rock also filed for an Ethereum ETF Spot. Black Rock’s winning rate is extremely high as they have only lost to the SEC once after more than 50 different proposals.

The moment Black Rock stepped into Bitcoin, Ethereum ETF Spot made investors even more confident in the brilliant future ahead.

GameFi is showing signs of making a comeback

When looking back at GameFi trends in 2021 – 2022, the only thing we see are Dual Token models that are full of Ponzi and are predicted to die sooner or later. However, at the same time, Studio Game projects and projects began calling for capital from investment funds and throughout 2022, the number of Game Studios receiving huge amounts of money, accompanied by sky-high valuations, is still common. appear frequently. At that time, the amount of investment funds pouring into GameFi was more than DeFi.

After a period of silence, Game Studios with billion dollar valuations have recently begun releasing AAA games. However, the economic model is different. Instead of the Dual Token model, recent GameFi projects such as Big Time, Shrapnel or Parallel all use a Single Token model. With this model, projects will develop in the following directions:

• Use Stablecoins, BNB, ETH,… to buy NFTs and receive tokens through game experience.
• Use a fixed economic model.
• Use an economic model that depends on the price of the token.
• Use an economic model with variable inputs but fixed income.

Except for Game Pixels, which is making waves in the Ronin ecosystem, it still follows the Dual Token model. The project promises to deploy Gorvernance Token in the near future, currently the project’s reward token is BERRY.

The difference besides the economic model is Game Play. Of course, excluding the Pixels project, whose Game Play, according to personal opinion, is boring and bad, other games like Big Time or Shrapnel have an attractive Game Play. With these games, making money really depends on the player’s talent and the support of teammates.

The wave of Inscriptions reaches across platforms

Originating from Bitcoin with the first concept of Bitcoin Ordinals, it seems to be just a trend that only takes place on Bitcoin. But currently Inscriptions is spreading to many different ecosystems and everywhere it goes leaves unforgettable impressions such as:

• In the first days of appearing on Ethereum and Polygon, it pushed gas fees on the network to hundreds or even thousands.
• The set of Inscriptions released by Trader Joe’s Founder pushed transaction fees on Avalanche C Chain to over $5 per BEER mint.
• Inscriptions froze the Arbitrum network for over an hour, generating over 4 million transactions in a short period of time.
• Inscriptions initially seemed to have been conquered by the zkSync network, but eventually zkSync had to give up before it.
• Inscriptions are now starting to spread to many different Blockchains such as Celestia, Near Protocol,…

With Inscriptions coming with the benefits of Miner and Validator, there is a high possibility that this trend will continue to gain momentum for a long time to come.

The NFT market miraculously revived

The NFT market has had a strong recovery recently. Leading the NFT market up, the influence of Bitcoin Ordinals cannot be denied. However, PFP NFT collections have not seen growth except for a few special cases of:

• Mocaverse launched a series of big news such as calling for capital, launching a new product Moca ID,…
• Pudgy Penguins launches Pudgy World with the ambition to build a Games world on zkSync that also promotes strong growth for both Pudgy Penguins and Lil Pudgy.

NFT collections with the strongest growth are those associated with game titles when game titles release many announcements about game deployment, airdrops, upgrades,…

Signs That The Market Is About To Enter A Down Phase

Before going deeper into my personal views on the signs that the market is about to enter a bearish phase, I rely on my personal experience and analysis, especially I do not often use Analysis. technique should definitely not be an investment advice.

Some signs that the market is about to enter a bearish phase include:

• Meme Coin leads the growth category
• Too much good news and the market doesn’t care about bad news
• Simply a personal feeling

Meme Coin leads the growth category

Meme Coin is one of the riskiest investments in the Crypto market and when money flows to Meme Coin it means that users and investors are taking a lot of risks to achieve unbelievable profits. Maybe x hundreds or even thousands of times. In order for investors to invest in Meme Coin en masse, it must be in the context of their psychology being extremely optimistic about the market.

Looking back recently, Bonk is one of the prominent Meme Coins in the Solana ecosystem that has had extremely crazy growth and caused investors to rush to search for Bonk 2.0 on Solana or on some other systems. other ecology. Even large centralized exchanges like Binance have listed Bonk on both Spot and Future. How do we see the great interest and demand of the community?

It can be said that Meme Coin is one of the important storm warning birds in the Crypto market whenever the market is about to enter a period of decline or even collapse. However, just because Meme Coin flies does not mean the market will collapse, we need to analyze many other factors.

If you are passionate about investing in Meme Coin, this is an article you must read here.

Insciptions covers every ecosystem

Inscriptions as I said above are making waves in all the ecosystems it has set foot on. However, in essence, Inscriptions is also a form of Meme Coin because currently its application is not really much.

Nowadays, everyone is hunting for Inscriptions on new ecosystems, releasing Inscriptions on different platforms. This reminds me of the GameFi fever, especially the Free Mint fever of NFTs. NFTs each mint cost a fee, then the fee gradually decreased and when it reached Free Mint, the NFT wave officially receded and took a lot of time to return. I believe that Inscriptions will also enter the purification phase soon in the near future.

Most recently, a GameFi Metaverse project, Bitcoin Cats, successfully raised more than $80M from the community from Bakeryswap on the BNB Chain network. The alarming thing here is that this project does not have any products yet, not even a whitepaper. The only thing that users know about Bitcoin Cats is that this is the first GameFi project on the Bitcoin network.

Apparently, this is one of the signs of community FOMO.

Too much good news and the market doesn’t care about bad news

We are in a market context where there has been too much good news in the market recently, including:

• JP Morgan Bank expects Ethereum to outperform Bitcoin by 2024.
• Large units such as Black Rock, Fidelity,… continuously release positive comments about Bitcoin ETF Spot.
• Big guys like Michael Saylor continue to accumulate goods and DCA is positive.
• Tether has continuously issued USDT since November 3, 2023. Up to now, more than $6B USDT has been issued on the Tron and Ethereum networks.

In the context of so much good news, we have extremely bad news around Binance, especially with Changpeng Zhao – who has a huge influence on the Crypto market. CZ was forced to resign and was not allowed to intervene. intervened in the management of Binance US, with such huge bad news but the market and investors did not care and considered it not too big.

Buy rumors and sell the truth

In my opinion, the psychology of current investors is extremely confident in one thing: when Bitcoin ETF Spot is approved, all Americans will rush to buy Bitcoin or similar to large investment funds. to keep up with the wave.

However, in the Crypto market, we have seen many times of buying rumors and selling the truth, such as The Merge event, which was a turning point for Ethereum when switching from PoW to PoS. Ethereum’s price should have increased. strong but no it did not increase or even decrease because previously Ethereum had increased relatively much.

Similarly, Bitcoin’s strong growth in recent times is all about the information that Bitcoin ETF Spot will be approved. So what happens when it is actually passed?

The return of KOLs

If you regularly use Twitter and Tik Tok, there have been a large number of new KOLs born recently, besides there are also many KOLs who after a period of hibernation have officially returned to the market. Crypto school.

Usually this action also proves that the market is hotter than usual.

Simply a personal feeling

From all of the above factors, it leads to one main conclusion: current investors are extremely optimistic about the future of the Crypto market. The more optimistic users and investors are, the closer I believe it will be to the market adjustment period.

In terms of prices, we have seen 3 consecutive months of increases in the Crypto market, this happened in 2019 when we had 5 consecutive months of increases. If 2023 is like 2019, we will have green candles in December and January before entering the downward adjustment period to move to the next cycle. However, I think the important moment will be when the Bitcoin ETF Spot is approved, how will the market react?

Summary

Obviously, we still do not know which stage of the market we are in: doubt, optimism, confidence, etc. Through identifying investors’ psychology, we can somewhere predict be marketed. Hopefully through this article, everyone can understand more about their own perspective on the signs that the market is about to enter a period of decline.