There is a lot of bullish sentiment all over the place. Crypto prophets are prophesying, OGs are rubbing their hands looking for the next opportunity. Newbies are freaking out as they refresh coinmarketcap and coingecko looking for what to buy. Degens are already beginning to ape in looking for the next 1000X.
If you are like me, who have experienced two bull cycles (2017/2018 as well as 2020/2021) you know you cannot keep doing what you did in previous cycles that did not yield much results.
You need to approach things differently. More on this later.
Catalysts For The Bull Run
The first question you want to ask is, will there be a bull run? Is this all a hype or something? Why is almost everyone saying there is going to be a bull run?
Well, overtime there is always a catalyst which could be fundamental or social that causes a massive shift, creating a rapid inflow and onboarding of retail and new entrants to crypto.
It could also be technical such as the Bitcoin halving or ETH 2.0 upgrade.
The last Bitcoin halving came with a massive price rally, post halving.
In the past it has been mostly either a fundamental or technical catalyst, but this time around it is a combination of both.
ETF Approval
The Bitcoin Halving
This bull run will hit differently though, as there is a double catalyst.
The first question you want to ask is, will there be a bull run? Is this all a hype or something? Why is almost everyone saying there is going to be a bull run?
Well, overtime there is always a catalyst which could be fundamental or social that causes a massive shift, creating a rapid inflow and onboarding of retail and new entrants to crypto.
It could also be technical such as the Bitcoin halving or ETH 2.0 upgrade.
The last Bitcoin halving came with a massive price rally, post halving.
In the past it has been mostly either a fundamental or technical catalyst, but this time around it is a combination of both.
ETF Approval
The Bitcoin Halving
This bull run will hit differently though, as there is a double catalyst.
ETF APPROVAL
ETFs allow more retail investors to hold Bitcoin indirectly via a share traded on a stock exchange, which is expected to make Bitcoin more mainstream.
The approval, which happened a few days ago, is expected to create a bull run in the crypto market by diversifying the range of investors that can gain exposure to Bitcoin.
Several crypto investors believe that Bitcoin could surge to more than $100,000 this year after the U.S. Securities and Exchange Commission made a pivotal step to approve the first-ever U.S. spot Bitcoin ETF.
In the long run, the approval is also expected to shift the crypto market's price cycles and send money flows back towards Ethereum and Altcoins, which will be the ones to run up in price next.
The legitimization of Bitcoin through the approval of a Bitcoin ETF (even though the SEC will not agree to this) would be a signal of the asset's maturity and could potentially provide positive momentum for Bitcoin's price.
While there is no immediate short term benefit of the ETF approval, the gains of the approval will consolidate and create an upward momentum in the near future.
BITCOIN HALVING
The Bitcoin halving event reduces the number of new Bitcoins generated, which leads to a decrease in the overall supply of Bitcoin. This scarcity can drive up the price of the cryptocurrency, as demand increases for a limited supply. Historically, Bitcoin halving occurs every 4 years and is associated with a bullish market sentiment, as investors anticipate a potential increase in the value of Bitcoin. This optimism can fuel a rally in the crypto market, attracting more investors and driving up the prices of various cryptocurrencies.
WHAT HAPPENS EACH BULL CYCLE AND HOW TO PROFIT FROM IT USING TERM STRUCTURE.
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Lend stablecoins: During a bull run, demand for stablecoins will skyrocket as traders look for more fire power to hedge their positions. To profit from this, accumulate and gather stable coins so you can lend them in the bull run. By lending stablecoins on the Term Structure platform, you can earn a fixed interest rate on your investment while also benefiting from the price stability of the stablecoin.
- Trade tTokens in the Secondary Market: During a bull run, there will be increased demand for tTokens as investors look to diversify their portfolios and take advantage of yield opportunities. By trading tTokens in the secondary market, you can benefit from the increased liquidity and potentially earn higher returns on your investment.
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Take Advantage of the Repo Market: During a bull run, there may be opportunities to take advantage of, such as borrowing money in a low-interest-rate currency and investing it in a higher-yielding currency. By using your tTokens as collateral to borrow underlying tokens in the repo market, you can enhance your capital efficiency and potentially earn higher returns on your investment.
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Become A Primary Market Dealer: Primary Dealers are also known as market makers in Term Structure, they play a key role in facilitating trades in the secondary markets. By becoming a Primary Dealer, you can earn incentives for facilitating trades and benefit from the increased liquidity in the secondary markets. Market makers receive a 100% rebate of the fee paid to Term Structure plus up to 50% of the market takers’ fees paid to Term Structure for those trades dealt with them for that calendar month. Similarly, in the Repo Markets, Primary Dealers can receive a 100% rebate of the fee paid to Term Structure plus up to 50% of the market takers’ fees paid to Term Structure for those trades dealt with them for that calendar month.
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Take advantage of liquidity mining programs on Term Structure: Like most DeFi platforms, Term Structure will have liquidity mining programs from time to time with huge and unique rewards. Position yourself by participating in the secondary market to mine these rewards.
The rewards obtained from here can be used to pursue other opportunities that the bull run presents.
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HODL- COLLATERAL STRATEGY: A major “alpha” I can give to you for free is that Term Structure will be adding other tokens as collateral. Several are in the works and talks are going on and they will be announced on Twitter and Discord.
HODL is a typical strategy to maximize returns in a bull run. If you sell too early you miss out on potential 10x, 100x or more, hence people tend to Hold_On_For_Dear_Life. And if you do not sell at the right time you might have to HODL for longer. It makes sense to earn interest while you are HODLing and if for any reason you have to HODL longer, you earn rewards and interests because you didn’t just HODL any token, but tokens that are interest bearing on Term Structure and instead of allowing them to lie idle, you used them as collateral.
The HOLD-COLLATERAL strategy entails that you only hold tokens you can loan or use as collateral on Term Structure.
CONCLUSION
Term Structure is a decentralized fixed-income protocol that enables peer-to-peer lending and borrowing with fixed interest rates. Term Structure operates via three main markets: primary markets, secondary markets, and repo markets. See official links below
These are some of the strategies you can adopt in this bull run to maximize your earnings. Do not overwhelm yourself trying to adopt all the strategies at the same time, you can pick 1 or 2 and stick to them or tweak them to suit your peculiar needs and expectations.
Remember that this is not financial advice, the article is solely for informational purposes.
At the moment, term structure is currently in its testnet, mainnet is scheduled for Q1 2024. You can get started by interacting with any of the following links:
Website: https://ts.finance/ Testnet: https://app.testnet.ts.finance/ Tutorial: https://tutorials.ts.finance Academy https://academy.ts.finance/ Docs: https://docs.ts.finance/ Twitter: https://twitter.com/termstructlabs LinkedIn: https://www.linkedin.com/company/term-structure YouTube: https://www.youtube.com/@termstructurelabs Telegram: https://t.me/termstructure
