The stock market is booming. Why is it said that the cryptocurrency market is likely to see a bull market in the near future?

Many people have started to pay attention to the stock market these days, because the Shanghai Composite Index has begun to soar, and securities companies are the leaders, which gives people a sense of the bull market. In fact, if you calculate the time, the stock market has gone through 7 years from the last bull market in 2013 to the current bull market in 2020. A-shares have a cycle, that is, a bull market every 7 years, which is relatively accurate. The last bull market was in 2006. If you are interested in the stock market, you can actually check it out.

Shanghai Composite Index rose on July 6

The stock market bull market is coming. Of course, it is not good news for the cryptocurrency circle. Many people in the cryptocurrency circle are eager to speculate in the stock market, but I am still more at ease. First of all, there is a bull market in the market, which proves that the entire financial market is effective. Some people have said before that the domestic A-shares have a cycle of 7 years. In fact, to a certain extent, it implies that a bull market in the stock market may occur this year. At the same time, due to the needs of the international situation, it is also necessary for A-shares to go bullish in order to restore the market's hematopoietic function.

Of course, if we look back at the rotation between the cryptocurrency market and the entire domestic financial market, we can actually find some interesting phenomena.

From 2006 to 2013, my country's stock market was in a state of transition from bull to bear market, which means that funds have begun to withdraw from the stock market after speculation. It is necessary to go through the real estate, bond, bulk commodity and other markets. Of course, except for the impact of the global financial crisis in 2008, these markets have indeed gone through a round of development. At the same time, the cryptocurrency market has grown from nothing to catch up with a big bull market and has a certain scale.

From 2013 to 2020, the cryptocurrency market was in a solid stage. After all, there were too many virtual things and the industry needed to "lay the foundation." Funds went from the stock market to real estate, then to commodities, and finally to cryptocurrency, bonds and other markets. In other words, funds did not let go of any market in that cycle. Now in 2020, the stock market is ready to launch a bull market again, so there will most likely be another round of speculation in the later period.

At the same time, we all know that when the stock market was bearish in 2015, the cryptocurrency market actually began to warm up gradually from the coldest moment. Of course, many people may have chosen to give up at that time, but we all know that those who persisted finally made money in 2017. By the way, the real estate market was still relatively good in the meantime.

By now, money has returned to the stock market, which means that if you wait patiently in the cryptocurrency market, you will definitely usher in a bull run in the end.

Of course, the reason is very simple. There is a famous saying on Wall Street: "Money never sleeps." That is to say, big money is actually smart, because behind the big money, it actually represents the smartest group of people. We can say that they manipulate the market, but they also choose to launch at the right time based on the gradually improving investment market environment. It is like going downstream rather than upstream. This is how the so-called market cycle is produced. For example, we often say that the stock market has an economic crisis every 7 years, the currency circle has an economic crisis every 4 years, and the currency circle has an economic crisis every 10 years. In fact, in essence, it is a situation of prosperity and decline, and decline and prosperity.

For these groups that can shake the market and start the trend, it is generally difficult for us to guess the logic behind them. They will not necessarily follow the script, first the stock market, then the housing market, or then the cryptocurrency market. In fact, that is to say, we cannot simply think that the next wave will definitely be the real estate market or a certain market. Therefore, the best way is to do nothing.

When a market starts to rise, some hot money will flow into it, causing other markets to be drained. Simply put, some people who originally invested in Bitcoin may turn to investing in the stock market, which will prevent the digital currency market from rising in the short term. This is a good layout opportunity for firm holders, as they can have a longer time to gradually absorb funds in the market so that they can generate chips with a say.

Similarly, we also know that funds have costs. In general, large investment institutions are most worried about putting money in the bank to earn interest, because this is a waste for them. Therefore, if the big funds in the currency circle do not go out, then they will have some sunk cost losses, which is not allowed for these big funds. If sunk costs are incurred today, then in the future they will inevitably need to make profits by raising prices.

In addition, people only need to be familiar with one or two markets in their lifetime. If you have been in the stock market, then you are most familiar with the stock market, and it is easier to make money in the stock market. Unless you have to, try not to participate in markets you are not familiar with. When you are well versed in the cryptocurrency market, the best way is to ambush in the cryptocurrency market, rather than breaking one and throwing one like a monkey breaking corn, and finally getting nothing, which is the biggest loss.

Finally, in fact, the bear market of each market is a consolidation process. The bear market is a good time for many people to build positions. When the stock market starts to rise, it actually means that the bull market of the cryptocurrency circle should not be too far away from now. Basically, if it is not this year, then it is likely to be next year. Unless the stock market this year is only a small bull market, not a big bull market, then this is a big uncertainty for the cryptocurrency circle.