The main players in the new narrative of the crypto circle are actually hot money. They come from the stock market, with keen instincts and decisive decision-making. Retail investors need to understand who their opponents are—how hot money operates and how to defend themselves in this game.

**What exactly is the new narrative in the crypto circle?**

In simple terms, it’s like a living organism. From birth, development, prosperity to eventual death, this process follows certain patterns.

**Generally, hype goes through five stages:**

**Initial Stage** — One or two leading coins start to surge and hit daily limits, with only a few people aware of this concept.

**Acceleration Stage** — Early-informed funds gradually enter, with leading coins showing reduced volume but hitting daily limits or one-word boards. At this point, participants are still few.

**Climax Stage** — The market begins to explore other coins under the same narrative, with multiple coins in the sector rising together, reaching a peak of enthusiasm.

**Weakening Stage** — The rally of the leading coins slows down, and there may be a phenomenon of switching leaders within the sector, signaling a downward trend.

**Decline Stage** — The market completely ends, major funds have already exited, and retail investors are left holding the bag.

**Remember these two points to avoid being cut:**

1. The new narrative in the crypto circle relies on "expectation" rather than actual results. Before expectations are fulfilled, prices can rise tenfold; after realization, they tend to fall.

2. Hot money fears a market without hotspots. Unlike value investors who hold a coin for months or even years waiting for the company to grow, hot money is restless. If there are no hotspots, they will create them. So next time you see certain coins inexplicably hitting daily limits, observe carefully—see if they share any common traits — this might be a signal for the next wave of momentum.