More and more friends around me are starting to doubt: has the bull market really left us? As an old player who has crawled out from working in an electronics factory, I have to sing a different tune— the bull market hasn't ended at all; it's just that the way to play has changed.
The recent market performance has deeply affected me. While most people sigh at the rise and fall of Bitcoin, I see MEME coins like Binance Life continuously rising, privacy coins like ZEC suddenly gaining momentum, and the storage sector led by FIL quietly strengthening. How can this be a signal of the end of a bull market? This is clearly the normal rhythm of sector rotation.
Recalling the last cycle, I also persisted in positioning during the panic of others, ultimately reaping unexpected rewards. This time, I still choose to trust my judgment.
First, the market has changed, but the logic is clearer.
The biggest difference between the current market and the past is that capital flows have become more regular.
The traditional 'all coins rise and fall together' crazy bull market is hard to replicate; instead, it has been replaced by a healthier, more sustainable sector rotation model. When Bitcoin's price breaks through key levels, funds gradually overflow into mainstream public chains like Ethereum and then spread to quality projects across various ecosystems.
There are two core logics behind this rotation:
On one hand, the total amount of funds in the market is always limited, even in a bull market. Smart money seeks maximum efficiency and will flow sequentially into different sectors rather than lifting all assets simultaneously.
On the other hand, as regulatory policies become increasingly clear, projects lacking real value find it hard to gain market favor. The market is bidding farewell to the past frenzy of 'chickens and dogs rising together' and entering a new phase of survival of the fittest.
Second, sector rotation is happening; have you noticed it?
If you only focus on Bitcoin's price fluctuations, you may miss the opportunities brought by sector rotation. Historically, funds typically flow in the following order:
Stage one: Bitcoin leads the way, attracting institutions and retail investors to enter;
Stage two: Funds begin to overflow into mainstream public chains like Ethereum;
Stage three: Quality projects in the Ethereum ecosystem, such as DeFi and Layer 2, begin to perform.
Stage four: Hotspots diffuse to more topical tracks like AI and MEME.
Currently, we are in a transition period between stages two and three. The recent Pectra upgrade of Ethereum and the strong capital inflow into the ETH ETF are injecting new vitality into the ecosystem. That's why I am particularly focused on leading projects in the ETH ecosystem, as they are likely to become the main force in the next wave of market trends.
Some analysts point out that a real 'bull market' may officially start in the second quarter of 2026, when the Federal Reserve's interest rates may drop to a sufficiently low level, releasing more potential capital into the market.
Third, three survival tips for newcomers.
As someone who has been through it, I know how difficult it is to stay calm amidst market fluctuations. Based on my experience, here are three practical tips for newcomers who are still confused:
1. Say goodbye to the fantasy of overnight wealth, embrace patience.
In this market, patience is more important than IQ. I initially made the mistake of chasing highs and selling lows until I understood one principle: the money in a bull market is earned by waiting, not by frequent trading.
Now, I use the simplest regular investment strategy, investing a fixed amount weekly into promising assets, avoiding the risk of one-time high-positioning. For uncertain market fluctuations, I choose 'physical isolation'—transferring most assets to wallets, leaving only a small amount for short-term trading.
2. Focus on sector leaders, stay away from 'small transparent' projects.
In sector rotation, strong leaders often start first and retreat last. How to identify leaders? There are two practical criteria: First, check if the token's exchange rate against Bitcoin or Ethereum is strengthening; second, choose the projects with the highest market capitalization and liquidity in the segmented tracks.
For example, I will focus on FIL in the storage sector, and in the DeFi field, I will look at established leaders like UNI and AAVE. For obscure, low-community engagement altcoins, I generally won't consider them. After all, when funds flow in, they will certainly choose targets with less resistance and stronger consensus first.
3. Build a risk-resistant portfolio and move forward steadily.
I divide my investment portfolio into three levels, which aligns with some professional analysts' advice:
Core assets (60%): Mainly Bitcoin and Ethereum, these are the 'keystones' of the portfolio;
Potential tracks (30%): Diversified investments in Layer 2, DeFi, AI, and other tracks with real progress;
Cash defense (10%): Holding stablecoins to capture sudden opportunities or as a hedge asset.
Every quarter I check my portfolio allocation; when a certain type of asset rises too much causing its proportion to exceed the limit, I sell part of it to take profits and buy underperforming assets. This 'rebalancing' strategy effectively forces me to 'sell high and buy low.'
Fourth, why do I pay special attention to the ETH ecosystem?
Besides Bitcoin, I am currently focusing on the Ethereum ecosystem for three reasons:
First, the Pectra upgrade in December will lower gas fees, improve network performance, and directly benefit ecological applications;
Secondly, the continuous inflow of funds into the ETH ETF provides stable buying pressure for the market;
Most importantly, the Ethereum ecosystem has the richest application scenarios, from DeFi to NFT, from Layer 2 to AI; these tracks will benefit first in the fund rotation.
Data shows that when Bitcoin's growth slows down, funds often overflow into the Ethereum ecosystem. Looking back at the 2021 bull market, BTC rose first, followed by ETH soaring from $1,000 to $4,800, driving explosive growth in the entire DeFi ecosystem.
Conclusion: The bull market's meal must be savored slowly.
From a factory worker earning 3000 a month to today, I have experienced multiple market fluctuations and learned one principle: the market never lacks opportunities, but lacks prepared and patient people.
The current adjustment may not necessarily be a bad thing; it is filtering out projects lacking fundamental support and laying the foundation for the next wave of increases. Some analysts believe that the market trend in 2025, including the current price fluctuations, may just be a range-bound phase preparing for the next rise.
For those who truly believe in the future of blockchain, every deep correction is an opportunity to accumulate quality assets. After all, the long-term trend of this industry has never changed—more institutions participating, more complete infrastructure, and broader application scenarios.
The meal of the bull market must be savored slowly. Let's maintain our patience together and wait for the sector rotation to reach our position.
What sector do you think will rotate next? Feel free to share your views in the comments!
