Title: Everything before this was just noise—now the real bull cycle begins
Author: hitesh.eth (@hmalviya9)
Compiled by: Asher (@Asher_ 0210 )
Recently, the price correction of BTC has led to a significant decline in Altcoins across almost all sectors, with some sectors even experiencing extreme pullbacks. According to ROOTDATA data on February 8, since BTC's first correction on December 17, 2024, the AI Agent sector has seen the largest decline of 72.41%; followed by the Meme sector with a decline of 59.24%; the GameFi sector with a decline of 56.96%; and the NFT sector with a decline of 54.8%, while other categories have also seen pullbacks exceeding 40%.
Data source: RootData
Perhaps when the bubble bursts and the market goes through a round of washing, the real buy the dips opportunity will quietly arrive. According to the chart analysis published by analyst PlanB, all Bitcoin profits have appeared in the red periods (i.e., the six months before the halving to the eighteen months after the halving) in the chart, while the blue periods have been all losses. We are currently in the red period, and the bull market is expected to continue until October (from February).
Furthermore, from a macro perspective, the real bull market cycle in Crypto may have just begun.
In this article, hitesh.eth analyzed the vision of the Crypto community, exploring the two possible paths the Crypto market may face in the future: one is a state of anarchy filled with speculation and freedom, and the other is gradually strengthening regulation and control. As the market develops and technology progresses, these two paths will become increasingly clear, and the real bull market cycle may be about to begin.
The following is the original content (edited for easier reading):
Crypto Should Be an Anarchist Experiment
The emergence of Crypto technology is not accidental, its development has spanned decades, with thousands of cryptographers driving this process, with the goal of building a truly decentralized Crypto society. In this society, legal identity is no longer a necessity, everyone can maintain anonymity, governance, currency, communication, interaction and collaboration are all driven by Crypto technology, without any authority restrictions.
In such a world, people can freely create markets, trade without constraints, and wealth truly belongs to individuals, with the tax system losing control. The power institutions and banking system have long controlled the economy, already deeply mired in corruption, and the carefully constructed illusion makes it difficult for people to perceive that they are already in a cage.
The Awakening Voice of Bitcoin
The emergence of Bitcoin points the way for the development of the Crypto anarchist society. It provides an alternative to the traditional financial system, allowing individuals to independently control their wealth, no longer relying on banks or governments. Money has achieved true decentralization for the first time, with censorship resistance, transparency, and no permission required.
In 2008, Satoshi Nakamoto released the Bitcoin whitepaper, which was not only a technological breakthrough, but also an ideological revolution. It shook the foundations of the centralized monetary system, revealing the flaws of governments and financial elites manipulating fiat currencies, marking an important step in breaking the long-term economic oppression.
Subsequently, Ethereum built a complete development infrastructure, fully exploring the application scenarios of blockchain technology, driving the first wave of the Crypto anarchist era.
Tokenization of Everything
The Crypto anarchist society requires infrastructure to support tokenization, allowing everything that can be expressed in words or images to be tokenized, and building liquidity markets around them.
This vision was proposed as early as 1988 by the legendary Cypherpunk figure Timothy May in the "Crypto Anarchist Manifesto". He envisioned a world empowered by cryptographic tools, where privacy, freedom and individual sovereignty are realized, no longer under the control of governments and centralized powers. May described how Crypto communications, anonymous transactions, and decentralized systems can make oppressive institutions irrelevant. This manifesto became the ideological foundation of Bitcoin and the broader Crypto movement, inspiring developers and thinkers to view cryptography as the ultimate tool for human liberation.
Putting aside price fluctuations and focusing on the essence of market development, it can be found that a key liquidity-driving mechanism - Bonding Curve - was unlocked last year. This mechanism can create liquidity markets for various text-based concepts. In the field of images, NFTs have already explored this in the previous cycle. The current experimental direction is to create as many liquidity markets as possible to meet needs at different levels.
Meme Coins as the Market
On the surface, creating Meme coins means creating seemingly meaningless liquidity markets, but the core is to create markets, assuming that some people like to speculate on "X" and providing them with the opportunity to enter the on-chain to profit from it.
In this speculative process, people will form beliefs around certain things, which come from the theories or data they adopt. So, in fact, we are building liquidity markets for various tokenized beliefs.
The Wild West of Crypto Anarchy
In the state of Crypto anarchy, people can trade opinions, trends, stories, articles, songs, memes, research papers, reputations, gossip, comments, recipes, and many other things that are currently unimaginable, all of which are crazy.
As written in the "Crypto Anarchist Manifesto", this stage will eventually be reached, and now we have the infrastructure to support various wild liquidity markets, but the current problem is that most markets are exploited by powerful participants who want to consolidate their existing profits.
Solving the problem of fair incentive distribution in liquidity markets is to create a reputation layer for the Crypto anarchist state. At this level, participants can verify the reputation of creators before participating in the market, and creators can also verify the reputation of users before accepting them.
Two Paths for the Future
The Crypto market is currently at a critical stage, with two paths to choose from, each with its own pros and cons. The first path leads to more speculation and freedom, bringing an ever-evolving Crypto anarchist state. In this state, new markets will constantly emerge, with wealth being made and lost in speculative cycles, and those who can adapt and act quickly will thrive.
The second path means stronger regulation and control, leading to a regulated Crypto economy. This provides stable, compliant and structured investment opportunities, led by institutions and traditional financial players, offering a more predictable but controlled environment. As the US introduces Crypto regulations, the distinction between these two paths will become increasingly clear. The regulated market will focus on "cash cow" projects and revenue-generating Web3 businesses, which will also be the starting point of the first bull cycle under authoritarian control.
The Crypto anarchist state, on the other hand, will continue to change rapidly at the edges, where 99 out of 100 markets may decline, while one market will absorb the liquidity of all the others. The value of attention will rise, and those who can navigate this landscape will continue to win. In some corner of the Crypto anarchist state, there will always be bull market cycles, the key is to identify and capture the maximum benefit from them.
