Crypto Markets Are in Desperate Need of New Narratives To Push Prices Higher (Kinda)
TL;DR
Crypto markets are in need of new narratives to feed price action, but really — narrative or not — if Bitcoin starts moving, the rest of the market will likely move with it.
Full Story
Another childhood analogy? Sure why not.
Remember those deals your parents used to cut with you? “If you maintain a B average, we’ll take you to a waterpark this summer.”
The moment that narrative was set — you were studying harder, paying greater attention in class, and even going as far as asking for water park-related gifts for your birthday (swim trunks, rash vests, goggles, etc.).
The crypto market follows a similar path — it finds narratives, and works towards them.
Whether or not these narratives are ever actually realized is a whole other question…
The point is: once set, the market starts builds towards the conclusion of these narratives — and in the case of crypto markets: “building” = “investing”
For example:
The Bitcoin ‘Runes’ narrative saw a pump in activity on the chain.
Solana saw a pump thanks to the “holy sh*t we didn’t die after the FTX collapse!? This is awesome!” narrative.
And Ethereum had its own ETF narrative (ever so briefly).
But now everything has quietened down, the market is in desperate need of a new narrative to invest towards.
…kinda.
See, the thing with crypto markets is: if Bitcoin pumps, the rest of the market tends to pump. And when that happens, certain narratives can add extra momentum to particular projects.
But when it all comes down to it — clear narrative or not — if Bitcoin is moving, the rest of the market will likely move with it.
So yeah, right now, crypto is a total snooze fest.
The good news is: we’re still in an up trend!
Which means after Bitcoin finishes taking its well earned breather (after seven months of ‘up only’ between Sep ‘23 and Mar ‘24) there’s a good chance we’ll continue moving upwards.
And when that happens, narratives like:
Gaming
AI x crypto
Web3 social
Tokenization on Bitcoin
Decentralized physical infrastructure (DePIN)
They’ll all start to feed the flames of positive price momentum again!