Recently, the price of Bitcoin has risen from approximately $25000 to $35000 within a month, an increase of up to 29%. This has sparked a wave of excitement in the entire cryptocurrency market, and people eagerly welcomed the long-awaited bull market overnight
Recently, the price of Bitcoin has risen from approximately $25000 to $35000 within a month, an increase of up to 29%. This has sparked a wave of excitement in the entire cryptocurrency market, and people eagerly welcomed the long-awaited bull market overnight.
The price trend of Bitcoin has attracted widespread attention, and this increase is very eye-catching.
The story starts at the end of 2021, when the Taprot upgrade introduced advanced scripting capabilities for isolation witnessing, which allowed Bitcoin to support complex data and protocols. This upgrade significantly enhances the programmability and scalability of Bitcoin, laying the foundation for the development of the BTC ecosystem. This laid the foundation for the ecosystem explosion in 2023.
The emergence of the Ordinals protocol has further promoted the development of the BTC ecosystem, and its adoption with Taprot promotes each other. People can write NFT data into an isolated witness extended space (4MB per block) through encoding.
Quickly, developers made improvements to Ordinals by incorporating token functions similar to ERC20 into BTC output scripts, resulting in the birth of BRC20.
The general public's attention to the BRC20 track inscription on Bitcoin has increased, mainly due to the sharp increase in Bitcoin prices or the promotion and discussion of this topic by friends around them. This has sparked many people's interest and made them want to participate.
Below, I will share a chart to give everyone a clearer understanding of the situation.
Recently, the increase in Ordl has been very high, reaching four times, which has sparked many people's interest. Many people believe that this may be a wealth opportunity and consider whether to participate. However, I would like to propose some calm viewpoints for consideration:
Firstly, it is important to recognize that the popularity of the market does not necessarily represent a certain opportunity. The high market heat may lead to short-term fluctuations, but it may also be accompanied by risks.
When hyping up cryptocurrency assets like Ordl, it is important to be careful, as most participants are retail investors and there is a risk of being trapped. Prudence and risk management are crucial in this field.
Part of the reason why Bitcoin can remain stable is because it has a broader consensus and institutional support. However, the current consensus level of Ordl may not be as high, which means investors should be more vigilant.
If you have already made a profit, it may be a wise decision to close some positions in the short term. For those who have not yet entered, waiting for market adjustments may be safer, as this direction may be repeatedly hyped during bull markets.
In trading, it is important to always remember a sentence: buy when no one is interested, sell when the crowd is boiling. This means buying when the market is sluggish and selling when the market is booming, so even if mistakes occur, there is a greater chance of profit.
I have posted a daily chart of Bitcoin's upward trend at the beginning of the year, and everyone will understand.
The previous stage's price reached a maximum of $17, and then dropped back to around $2, a drop of up to 80%. If you can quickly accumulate wealth based solely on what you hear and hear, then entering when the price reaches its peak, I believe only a very few people can withstand this kind of fluctuation.
Therefore, I would like to remind you that if you cannot withstand price fluctuations of more than 50%, it is recommended not to participate in the short term.
We need to objectively and rationally judge the market situation. Once an asset goes online on an exchange, the market will fully price it based on rational cognition, and short-term speculation may come to an end. Therefore, caution should be maintained when investing.
Instead of pursuing current hot topics, it's better to lay out areas that may become hot in the future. Recently, An plans to launch an application with a scale of one billion.
Among them, the Ethereum second tier pledge field is most likely to trigger market heat. If Mouan's products can solve the problem of peripheral entry and cleverly integrate exchanges with the Dapp ecosystem, then this field will become the next hot topic.
After the next wave of Ethereum's main rise, the monetization effect of Ethereum's pledge will become a hot topic in the market with its popularity. Pay special attention to high-quality projects on pledged tracks such as SSV and LDO.
It should be emphasized that the above views only represent personal opinions and do not constitute investment advice.
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