Recently, while observing market dynamics, I noticed several phenomena that are quite worth being cautious about; these are actually typical signs of a bear market.

First is the sudden emergence of a large number of capital pool projects. You’ll find that those small projects that nobody paid attention to before suddenly start to explode, with all kinds of financing news flying everywhere. This situation usually indicates that the market is becoming restless, with everyone chasing quick riches rather than investing rationally.

Second are the wealth effects suddenly created by obscure meme coins. They can double or even tenfold in just a few days. Such rapid price fluctuations can trigger a frenzy of retail investors rushing in. But this is precisely when the market bubble is most inflated and also the most dangerous signal.

The most critical point is that the exchanges themselves are starting to show problems. You’ll see some platforms being pressured by regulatory authorities, beginning large-scale layoffs, or even directly shutting down and fleeing. When the market infrastructure starts to falter, you really need to be cautious.

My personal view is that if these three phenomena occur simultaneously, it’s already a very clear sign of a bear market. Instead of waiting to be caught in a trap, it’s better to cut losses while there’s still a chance, preserving strength to wait for the next real opportunity. The market will always have new cycles, but if the principal is gone, there’s no way to participate in the next wave of opportunities.