Bloomberg: Crypto market 'shanzhai season' starts poorly

According to BlockBeats, on July 25th, Bloomberg reported that for most experienced cryptocurrency traders, the "shanzhai season" is almost a regular cycle. Firstly, the rise of Bitcoin has triggered a new round of market attention towards digital assets. Funds flow into this dominant cryptocurrency, while interest in 'altcoins' gradually decreases. Traders began to search for higher returns elsewhere, and new stories and narratives emerged as a result. Subsequently, funds rotated to underperforming currencies, bringing in excess returns, which is also the reason why speculators coined the term 'knockoff season' during the bull market in 2017-2018. On July 14th, driven by the enthusiasm of "Crypto Week", Bitcoin reached a new historical high and entered a narrow trading range. Influential figures and investors in digital assets have called Ethereum's breakthrough and the rebound of the long sluggish NFT sector a turning point. However, this cycle is more characterized by intermittent rather than comprehensive prosperity of altcoins. XRP has surged over 60% since early July, but fell another 11% on Wednesday. Many of the most popular altcoins belong to a token category known as' low flux, high fully diluted valuation (FDV) '. These types of tokens typically have high fully diluted valuations of billions of dollars, but upon closer observation of their token allocation, only a small portion of the tokens can be freely traded. This often makes these tokens more susceptible to market manipulation. These factors typically come into play in the later stages of a typical knockoff season - when speculation reaches its peak, market fatigue intensifies, and prices often experience reversals. Although most crypto traders can easily recognize this pattern now, the hope remains.