Forget the charts, the technical analysis and the breathless predictions of a moon shot. You think you know what a crypto bull market is like? It’s not all about green candles and Lambo dreams. It can be a pressure cooker of emotions, anxieties, and big life-changing decisions. I'm here to tell you, from the trenches, the stories they won't tell you on CNBC.

FOMO Is A Powerful Drug

Let's be honest, you've felt it. That tension that comes from knowing your friends are getting wealthy while you’re sitting on the sideline. FOMO – Fear Of Missing Out – is the invisible hand that’s pushing a lot of the current crypto bull market hysteria. I talked to "Sarah," a single mom who put her entire savings into Dogecoin in early 2021 after seeing her friends brag about their gains on Instagram.

I was just like, what am I doing? I felt dumb as hell,” she admitted, the sting still evident in her voice. Everyone was raving about it and I thought to myself, ‘This is it, this is my opportunity. I didn't understand anything about crypto, but I didn't want to be left behind.

Sarah's story isn't unique. The siren song of fast fortunes that promises almost instant profits seduces so many others into the swamp market with tragic results. Welcome to the new gold rush, folks, where instead of the pickaxes and shovels of yore we’ve got our smartphones and trading apps. And like the gold rush, nobody strikes it rich except a lucky few. In fact, most don't. Remember that. This isn't about the tech or the innovation (although those are important), it's about human psychology. It is about the deep-rooted impulse to gather riches, the anxiety of deprivation, and the hunger for social acceptance. If you can make sense of that, you’re already well on your way.

Lessons From The Last Cycle?

The 2021 bull run was insane. Bitcoin went parabolic, altcoins mooned, NFTs took over the world and every community became a 10x NFT DAO. Beyond the facade of bliss, warnings were starting to spread. These warnings were frequently lost in the cacophony of the throngs. Did you listen?

I still vividly recall lunch with “Mark,” a brilliant investor who got rich during the dot-com boom. He saw the amazing similarities of the two periods. What he couldn’t miss were the irrational exuberance, inflated valuations, and overwhelming flow of money into untested projects.

"I sold everything," he told me bluntly. "I knew it couldn't last. The fundamentals just weren't there."

Mark's experience highlights a crucial point: history doesn't repeat itself, but it often rhymes. Though the crypto market is nascent, the themes that drive scam artists have always existed. Greed, fear and herd mentality are indeed what still moves these cycles. And those who don’t understand history aren’t just eternally doomed, they’re destined to repeat it. So think about it, what were some of those smart lessons you’re now bringing into the new cycle? Were you too greedy? Too fearful? Were you super smart and had a strategy all along, or did you happen to just catch this wave?

Who Really Benefits From This?

Here's a question that keeps me up at night: who really benefits from a crypto bull market? We know that there are tales of average Americans winning the lottery and life-changing sums of money. For every diamond in the rough, there are millions of stories of broken dreams and bankruptcy.

Think about it: who's profiting the most? The early adopters who stacked Bitcoin when it was a few pennies each? Or the venture capitalists who funded the current shining new objects? The same influencers who shill the newest, most scammy-looking coins to their followers? Or the exchanges that make a killing in fees every time you trade? As much as crypto can offer unique pathways to financial independence, it has the power to concentrate wealth among a small group of people. It's a double-edged sword.

Let's not forget the environmental impact. Bitcoin mining uses more energy than entire countries and exacerbates our climate crisis. Though climate devastation looms, the potential for profit trumps the cost to the planet. These are the questions we should all be asking ourselves as we make the right moves to get ready for the next bull run. It's not enough to just chase gains. We need to be more conscious of the ethical and social ramifications of the products we’re investing in.

Don’t forget the trenches are a deadly environment. Stay alert, stay careful, and above all else stay human. Stop opportunism from opening your eyes to potential dangers. One way to avoid making dangerous decisions out of FOMO. Keep in mind that each chart has a narrative. Behind every data point, under each transaction, lie the hopes and fears of real, vulnerable people. Invest better, and hopefully, just hopefully, you too will come out of the trench a winner. But even if you don’t, take inspiration from your mistakes and live to fight another day. That's all any of us can do.

  • Extreme volatility
  • Unexpected pumps and dumps
  • Endless shilling
  • And, yes, the potential for life-changing gains.

But remember, the trenches are a dangerous place. Be informed, be cautious, and most importantly, be human. Don't let greed blind you to the risks. Don't let FOMO drive you to make reckless decisions. And never forget that behind every chart and every transaction, there are real people with real hopes and real fears. Invest wisely, and maybe, just maybe, you'll emerge from the trenches victorious. But even if you don't, learn from your mistakes and live to fight another day. That's all any of us can do.