Crypto Bull Market Entering Mid-Term?
To share with you two latest news.
On March 7, Meitu, a Hong Kong-listed company, announced that the company had purchased approximately US$40 million in BTC and ETH. In this regard, Cai Wensheng, the founder of Meitu, said that Meitu has thus become the first listed company in Hong Kong to purchase BTC digital currency and the first listed company in the world to use ETH as a currency value reserve.
The engine of this bull market came from last year’s massive buying of Bitcoin by European and American institutional investors, especially Grayscale and MicroStrategy. These institutional investors mainly choose Bitcoin as their buying target. I think it is mainly because Bitcoin has the highest consensus, the best liquidity and the lowest risk.
But in an earlier article, I estimated that this situation will change in the future, and the value of Ethereum will eventually be recognized by institutional investors. Although Grayscale also holds and buys Ethereum, Ethereum is not its main purchase target, and Grayscale’s purchase of Ethereum cannot form a demonstration effect.
And now the company that is carrying the banner of snapping up Ethereum has finally appeared, and surprisingly it is a Chinese company. I was neither surprised nor surprised to see this message.
Surprisingly, I did not expect institutions to enter Ethereum so quickly. I originally thought that for Ethereum to be recognized by institutional investors, it would have to wait until the second layer of expansion landed or even made significant progress in 2.0. Because of the current situation of Ethereum, many institutional investors may be afraid to enter the market because they may be worried that its future will be highly variable. Unexpectedly, Chinese companies boldly entered the market and publicly expressed their optimism for Ethereum. I completely agree with Meitu’s statement on Ethereum.
On the other hand, I am not surprised by this, because old players in the currency circle know that Cai Wensheng entered the game of digital currency very early. As early as in the 2017 ICO tide, Cai Wensheng began to buy digital currency with personal funds. So today, his behavior of leading his listed company to buy digital currency is by no means impulsive, but has been carefully considered.
The significance of Meitu’s move mainly includes the following points:
1. Create a demonstration effect on domestic investors, especially investors in the traditional financial sector. This is a further ferment of this effect in the traditional financial circle after Dan Bin bought Bitcoin.
2. It has a demonstration effect on domestic and overseas listed companies, and it is very likely that more domestic and overseas listed companies will enter the market.
3. Bring demonstration effect to global institutional investors. The actions of Meitu will definitely be transmitted overseas and affect overseas investors, prompting them to re-examine the value of Ethereum.
4. The communiqué issued by Meitu at this time may end this adjustment in advance and let the market sentiment ferment again.
Judging from this situation, I think the current price of Bitcoin and Ethereum may be the cost price of many institutional investors who will enter the market in the future. I still think that for them, their expectation is at least a 1x increase, so the future space of Bitcoin and Ethereum can be seen.
I haven’t looked at the market value ranking for a long time. I opened the CMC today and found that the market value of Uniswap has jumped to No. 8, and surpassed the link.
I think this is an important node in the development of the bull market to the present.
In previous articles, I estimated many times that the top ten rankings in this round will be greatly reshuffled, and DeFi tokens (not counting links) will break into the top ten. Originally, I estimated that Aave might be the first to enter, but I didn't expect that Uniswap has now grabbed the top spot and is the first to break into the top ten.
Now the top ten coins are: Bitcoin, Ethereum, USDT, BNB, ADA, Polkadot DOT, Ripple XRP, UNI, LTC, LINK. Among them, XRP, LTC and ADA are also likely to be squeezed out of the top ten one after another.
The next market may develop like this: After this adjustment, under the leadership of Bitcoin and Ethereum, the market will rise again, and new DeFi tokens will rush into the top ten one after another. This round of bull market will gradually enter the middle stage ; Then the top 20 rankings were reshuffled, more DeFi tokens rushed into the top 20, and the bull market entered a climax; finally, the market sentiment was extremely inflated, and Bitcoin and Ethereum led the entire market to make a final push and reached its peak.
Of course, the above deduction is just my personal conjecture. It is impossible to estimate when each stage will come and how long it will last.
But at least so far, all these signs indicate that the next round of the bull market will have a lot of drama. We must not throw away the bargaining chip and become a bystander. We must firmly hold the bargaining chip and become a part of this big drama.
