Factors Dominating Crypto Market Trends

Chairman Mao Zedong has two classic articles that I often like to study. One is “On Contradiction” and the other is “On Protracted War”.

The Theory of Contradiction is about how we analyze the various contradictions that can affect the development of things in the process of development, how to find the main contradiction that dominates the development of things from the many contradictions, and how to distinguish the main contradiction from the secondary contradiction, the main contradiction and the development and change of secondary contradictions. This is the methodology that guides our analysis of the problem.

“On Protracted War” is a classic deductive article specifically used by “On Contradiction” to analyze the actual situation. In this article, the author deduced the development and changes of contradictions in the whole process of the War of Resistance according to the development and possible changes of the national conditions of China and Japan at the beginning of the Anti-Japanese War, and deduced the development stages experienced by the entire Anti-Japanese War. The situations that will arise on both sides, and what we should do in each situation. This is an article with instructive and reference value for predicting the medium and long-term development of things.

Back to the specific issue we are going to discuss: For us, now that the entire market has entered a bear market, and according to my previous prediction, the market has entered the second stage of the bear market, and we can start to set investment, then at this time The main questions we need to focus on become two: First, how long is this bear market likely to last? The second is how to use this time to set a fixed investment price and plan that suits us?

To try to analyze these problems, the two articles mentioned above are worth our reference and study.

On the one hand, the current crypto market trend has become more and more influenced and dominated by large institutional funds. On the other hand, it still has its own unique development conditions and laws. Therefore, I think there are two main contradictions that dominate the development of the bear market: one is the Federal Reserve. The other is the status and laws of the encryption ecology itself.

The so-called macro policy of the Federal Reserve consists of two points in popular terms: one is the regulation of interest rates, and the other is the release of water and printing money. These two points directly determine whether the entire crypto market has the entry of new external funds, and whether there is the entry of new external funds directly determines whether the market has a direct upward momentum.

We have talked a lot about the impact of the Fed’s policy on the crypto market, so I won’t go into details in this article. I will continue to analyze and deduce in the following chapters.

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The so-called problems of the encryption ecology itself mainly have two aspects: one is the negative problems of the encryption ecology itself, and the second is the new vitality contained in the encryption ecology. The former refers to how many thunderbolts will explode and cause the market to collapse, and the latter refers to what kind of new scenarios and new ecology will be produced.

Here we focus on analyzing the problems of the encryption ecosystem itself.

First of all, the negative problems of the encryption ecology will, on the one hand, cause the market to collapse and further bring down the market, and on the other hand, will seriously hinder the entry of new funds.

This time the UST’s de-anchoring is a classic case. The collapse of UST directly brought down LUNA and Bitcoin, while the collapse of Bitcoin brought down the entire market. Without the collapse of UST, I am afraid that the market would not have fallen so tragically in such a short period of time. The collapse of UST not only affected the encryption ecology, but also attracted the attention of regulators: after the US Treasury Secretary named the risks and problems of UST two days ago, it was recently reported that the US Securities Regulatory Commission was investigating UST.

Obviously, this thunder has not only affected the insiders, but has also seriously spread to the outside of the circle and even the traditional financial world. We can imagine that after such an accident, the traditional big capital will obviously be discouraged from this circle in the short or medium term.

The new vitality contained in the encryption ecology is the hope and vision for the long-term development of the entire encryption ecology, the future that all our investors hope for, and the fundamental driving force and basis for us to stick to this position. It is also the fundamental reason for attracting new capital in the future. Once a new ecology breaks out, people see new opportunities and new opportunities, and new external funds will come in continuously, which will drive the market again and usher in the next bull market.

Well, we have listed the two basic contradictions that affect the development of the next bear market, so how will these two basic contradictions intertwine and affect the development of the next bear market? This is the focus of our next article.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/factors-dominating-crypto-market-trends/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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