Ethereum "has been planned for a long time", is the bull market in the currency circle coming?

The trend of the stock market in the past few days has poured cold water on many investors whose emotions have just been ignited. Especially on Friday, the Shanghai Composite Index fell by nearly 4%, and the ChiNext Index fell by more than 6%. This is rare in the trend of the recent period, and it seems to be a 180-degree turn compared to the trend of rapid progress some time ago.

In terms of the external environment, the trend of Sino-US relations has also taken a turn for the worse. After the US government asked my country to close the Houston Consulate, our government responded equally and asked the US government to close the Chengdu Consulate. The future direction of Sino-US relations is very worrying, because it is not only related to our country's diplomacy but also our country's future economic development. If the two major trading countries cannot get along well in the future, it will be extremely detrimental to the economic and trade development of both parties.

Therefore, it seems that the development of the external environment has also cast a huge shadow on the future development of the stock market, which makes people have to worry. As a result, many media have shouted "the end of the bull market".

But in my opinion, these are not enough to reverse the long-term trend of the stock market recently, that is to say, I still believe that the long-term upward trend of the stock market has not changed, and it is still in the early stage of the bull market. Regardless of the gap between the stock index and the previous peak or the performance of the vast majority of stocks, the phenomenon has not yet started.

Under such circumstances, the energy accumulated in the stock market in the bear market in the past five years will continue to explode, and now it is only a temporary correction.

I still emphasize the previous sentence:It is not easy to form a trend, and once a trend is formed, it is extremely difficult to completely reverse it.

However, the sentiment of the vast majority of investors is easily swayed by short-term fluctuations in the market, lacking a clear judgment on the general direction. This is true for investors in the stock market, as well as investors in the currency market.

Compared with the sharp drop in the stock market on Friday, yesterday's currency market showed a wave of overall upward market driven by the rise of Ethereum. Ethereum hits the $300 mark. If you don’t count the record that Ethereum briefly rushed to $300 last month, the last time Ethereum was above $300 was in August last year.

Perhaps it is the recent popularity of DeFi that has made people pay attention to the potential of Ethereum again. Perhaps it is V God who announced that the Ethereum 2.0 beacon chain will be launched in November a few days ago. Perhaps it is because the currency circle is too eager for such hot stimulation. After Ethereum broke through $300, the media in the currency circle shouted the slogan "the bull market is coming".

This reaction is exactly the same as the media's reaction to the stock market. The difference between the two is that just because the stock market has fallen for a few days, everyone can't bear to call out the end of the bull market, while in the currency market, just because Ethereum has once again stood at $300 and some recent positives, everyone can't bear it Temperament shouted that the bull market is coming.

So is it a sign that the bull market is coming when Ethereum stands at $300?

I don't think there's any conclusions yet.Let's look at the price first. Ethereum has just reached $300 and has not yet firmly established itself; in addition, no matter from the perspective of internal accumulation or the progress of the blockchain application ecology, the current development of the entire digital currency does not seem to be stable. Support a so-called "bull market". If there is really a market in this wave, I think it can be regarded as a small rebound at best, which is not enough to form a bull market.

However, in some areas, we can still see some bright spots. The most typical one is Changpeng Zhao’s confirmation that Binance’s next IEO project will be DeFi tokens. Driven by this news, the trend of BNB in ​​the past two days has also risen significantly. Today, its price is close to $20, and the other two major exchanges may follow suit.

Regardless of whether the surge in Ethereum this time heralds the advent of a bull market, I still suggest that everyone stick to fixed investment within $400 and hold on to ETH.