How do we operate at this moment when the market is euphoric?
At present, in the overseas investment market, the dissatisfaction of retail investors continues to ferment. Following the skyrocketing price of Dogecoin, everyone is guessing which coin will be the next one to be pulled by retail investors. Some opinion leaders began to call for Ethereum, directly asking "Has Ethereum exceeded $5,000?" Another opinion leader called on everyone to buy Ripple. Ripple rose by about 50% in one day yesterday. Regulatory dissatisfaction.
Regarding this kind of emotional venting, I suggest that everyone should remain calm and not follow the trend to guess which coins may be exploded and buy for no reason. Especially for some coins with very limited investment value, we must be more rational and cautiously follow the trend.
Although Bitcoin and Ethereum are still lingering in the past few days, two typical DeFi top projects have reached new highs: the highest UNI has exceeded $19, and the highest CRV has exceeded $2.6.Regarding the possible performance of these two coins in this round of bull market, I once estimated that UNI could reach $20 and CRV could reach $4.
It was the end of last year when I published this estimate, and I think they will reach this price point at the end of this year or the beginning of next year.
But now it’s only January, and UNI is already close to my estimated target price, and CRV is also very close to 3 US dollars. If it exceeds 4 US dollars, it may happen inadvertently.
Among the leading DeFi projects, I will pay special attention to these two coins, because they have a very wide audience among ordinary investors, and they are the currencies that everyone pays close attention to. Therefore, their trends can easily affect the public's emotions and can also reflect The sentiment of the entire market, thus reflecting the risk of the market.
Now the rise of these two coins has greatly exceeded my expectations. If according to my prediction, the bull market will continue until the end of this year or the beginning of next year, I really can’t imagine how much the prices of these two coins will rise by then, and how far other DeFi tokens will rise.
So based on the current market situation and then judging the next trend of the bull market, I can come up with only two answers: Either this round of the bull market will be resolved quickly and will not reach the end of 2021; or this round of the bull market will be extremely crazy. The extent may be no less than the crazy bull market of ICO in the last round in 2017.
Which answer is correct, we only have to wait for time to witness.
But even if this bull market ends quickly, it won’t be over right away, because one key indicator: the price of ethereum has yet to reach new highs. As long as Ethereum does not stand firm at a new high (around $1,500), I think the overall risk of the bull market can be controlled.
So we still have time, we can continue to hold the chips in our hands, and don't throw them away easily.
During this period of time, many readers have asked me which other potential coins I can recommend. To be honest, I don’t have any potential coins to recommend at present, unless there are some high-quality initial projects emerging in the future.
At present, all the projects I am optimistic about (whether it is mainstream currency or DeFi token), their current prices have fully exceeded the fixed investment price I once set, and quite a few (such as Aave) have risen to a level that I never dared to Imagine the price, and it is still at this stage.
Right now, the most important thing for us to do is to wait and watch. The most torment in the bear market is to resist fear and insist on fixed investment, while the most torment in the bull market is the current stage: hold the currency and wait, neither follow the trend to chase the rise, nor easily throw away the precious chips in your hand.
The current market situation is a bit different from what I expected at the beginning. Every day I can see more bloody news, and I am constantly updating my cognition every day.
I suggest that everyone also record their daily experiences and feelings in this round of bull market in some form. When this round of bull market ends, the next round of bull market will start again. When we look back at our own psychological journey, We must be able to learn a lot of experience and lessons from it, and this personal experience and lessons will be the most precious wealth for each of us on the investment journey.
