Capital has already begun to plan for next year's halving

The current consensus in the market is that the bull market will gradually start next year. This bull market is brought about by the halving of the pie + the Fed's interest rate cut.


Like the previous cycle, the capital of the Bitcoin network has begun to act in advance. The computing power of the Bitcoin network continues to hit new highs, exceeding 360EH/S, and the difficulty of the network is the same.



Not only is the halving expected, the current global macro environment is treacherous and changeable, and the haze of the "black swan" is still lingering. Bitcoin has gradually become an important category of safe-haven assets.


Therefore, judging from the data, whether it is the mining industry, giant whales on the chain, or capital, they are all entering Bitcoin and planning ahead of time.


So besides Bitcoin, what might be the sectors or narrative lines that the encryption market can focus on? Let me share with you some of my views:


1. In every bull market, the main line is different, but in the previous bear market, it has already begun to advance and lay out, and no main line appears out of thin air. For example, in the bull market of 2020, Defi is the main line, and it started to build in the bear market of 2018-2019. In a bear market, its scale is very small, and when a bull market breaks out, it will have an exponential wealth effect.


2. Due to the arrival of the bull market and the congestion of Ethereum, faster and cheaper public chains have emerged, such as SOL, BSC, Polygon, AVAX, etc. With the support of capital, they have undertaken a large part of the spillover ecology of Ethereum. But the chances of the next round of bull market should not be great, and the reason is simple. Many public chains compatible with Layer-2 and EVM are already very prosperous, and they are all cheap and have a good experience. This also determines that the main line of the next round of bull market will most likely not be infrastructure projects.


3. The next round of encryption cycle will be more biased towards application projects. There are several sectors that can be tracked, such as web3, RWA, gamefi, NFT2.0, decentralized storage, etc. Some of these sectors have been hyped, but the real big projects have not yet appeared.


4. In the entire encryption market, Bitcoin is the most certain. Although it is true that the increase is not as high as that of many small market capitalizations, some funds must be allocated. In the future, the hedging property will probably last for several years, and Bitcoin is already one of the major asset classes for hedging.


5. In the next cycle, whether Ethereum will still be the "King of Ecology", Houshanke thinks not necessarily, Ethereum does not have data storage and processing capabilities, and the web3 era is based on data, so Ethereum It may be difficult to be a facility for applied projects.


6. How will the market interpret it? I don't know either. Take one step at a time and watch one step at a time, so you don't have to worry about it.




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