The recent performance of the cryptocurrency market has sparked considerable controversy. Although Bitcoin (BTC) has risen from last year's $60,000 to $110,000, and Ethereum (ETH) has climbed from $2,600 to $4,200, there seem to be some underlying issues behind this surge.

The market structure has undergone significant changes. In the past bull market, retail investors would chase small cryptocurrencies, turning to Bitcoin and Ethereum after making profits, driving mainstream coins up and creating a virtuous cycle. However, the current market sees low retail participation, with institutional investors dominating market trends.

Whether this situation can be called a true bull market is debatable. The rise of Bitcoin and Ethereum mainly relies on the support of institutional investors, while the application ecology and on-chain activities are relatively lukewarm. Funds are overly concentrated in mainstream coins, leading to the neglect of other cryptocurrencies and public chain projects. The market no longer discusses which coin might achieve a hundredfold increase; a threefold rise is already regarded as a rare opportunity. This situation may affect the willingness of new funds to enter the market.

It is also worth noting that when Bitcoin reached $120,000 and Ethereum hit a new high of $4,800, the market response was unusually tepid. The reason for this phenomenon may be that investors realize the current surge is primarily driven by institutional investors rather than spontaneous enthusiasm from the market. The circulating supply of Bitcoin is decreasing, and institutional control over the market is increasing, raising the question of whether this imbalanced prosperity can be sustained.

Without the active participation of the small cryptocurrency market to drive the overall market, relying solely on institutional investors may make it difficult for the market to maintain long-term healthy development. Retail investors are not actively participating, and institutions are unwilling to bear the risk of losses, which seems to put the market in a dilemma. If the cryptocurrency market loses its allure of getting rich quickly, it may affect the entry of new investors.

The current market conditions have sparked thoughts on the long-term sustainability of the encryption currency ecosystem. The market needs to find a balance that can attract new investors while also maintaining healthy and stable development. This will be an important challenge facing the encryption currency market in the future.