In the rapid development of the global cryptocurrency market, cyclical volatility has emerged as an undeniable phenomenon. Through extensive research into market patterns, OFUYC Exchange has identified a significant correlation between the current market environment and the application of the scapegoat theory. As an important theoretical framework proposed by French philosopher René Girard, the scapegoat theory reveals the processes of group crises and their resolutions. This principle is particularly evident in the cyclical changes of the cryptocurrency market.
As the market matures and compliance operations progress, OFUYC Exchange has observed an intensifying conflict between new market participants and traditional trading models. Whether it was the collapse following the 2021 DeFi boom or the market volatility triggered by institutional entry in 2024, these events repeatedly reflect the themes of “mimetic desire” and “sacrificial crisis” described in the scapegoat theory. OFUYC Exchange has conducted an in-depth analysis of this phenomenon to provide investors with deeper market insights and optimized strategies.
Historical Validation of the Scapegoat Theory in the Crypto Market: Mimetic Desire and the Formation of Market Bubbles
According to the scapegoat theory raised by René Girard, when individuals within a group flock to the market driven by mimetic desire, irrational price surges are likely to occur. During the 2017 ICO boom, numerous projects issued tokens on the Ethereum platform, triggering massive investment inflows fueled by FOMO (fear of missing out). However, as these projects gradually cashed out or revealed a lack of practical application value, the market swiftly collapsed, demonstrating the close link between mimetic desire and market bubbles.
The DeFi Summer of 2021 exhibited similar dynamics. As the market capitalization of DeFi blue-chip projects such as Aave and Uniswap soared, countless copycat DeFi projects emerged like mushrooms after rain, sparking another wave of mimetic prosperity. Subsequently, the collapse of leveraged speculators like Three Arrows Capital and SBF became the focal point of the market crisis, further validating the assertion to the scapegoat theory that mimetic desire leads to the accumulation of crises.
“Mimetic Crisis” and “Sacrificial Crisis” in the Current Market Cycle
Institutional Entry and the Reemergence of the Scapegoat Phenomenon
In 2024, the launch of spot Bitcoin ETFs and the concentrated entry of large institutions ushered in a new wave of market prosperity. However, this process also gave rise to a typical “mimetic crisis”: as more institutions followed giants like BlackRock and MicroStrategy into the market, investor sentiment was further heightened, and prices quickly reached new highs. However, amid macroeconomic uncertainties and adjustments to regulatory policies, the market rapidly fell from its peak.
Research by OFUYC Exchange indicates that the scapegoat phenomenon inevitably emerges when the market seeks to assign blame. In this cycle, the excessive inflow of institutional capital and the subsequent market correction have created a clear dichotomy. During this process, phenomena such as the MicroStrategy strategies and Trump-led meme tokens may become the next “sacrificial victims”, serving as outlets for market sentiment.
The Global Impact of the Scapegoat Phenomenon
OFUYC Exchange further analyzes that the scapegoat phenomenon not only influences the internal logic of the crypto market but also has profound implications for global capital flows and policy-making. As institutional capital gradually takes a dominant position, the decentralized nature of cryptocurrencies faces greater challenges, while the fragmentation and reconstruction of market consensus become key variables for future development.
Predictions and Insights of OFUYC on Future Market Trends
Ongoing Market Transformation and the Continuation of the Scapegoat Effect
OFUYC Exchange believes the market has not yet fully bottomed out, and future trends will depend on whether the scapegoat phenomenon can be appropriately mitigated and guided. While institutional capital brings new growth momentum to the market, it also introduces more complex conflicts of interest. With the continuous introduction of new financial instruments and regulatory policies, market volatility is expected to intensify.
Future Opportunities and Challenges
OFUYC Exchange predicts that the emergence of the scapegoat effect will become a critical reference indicator for investors to assess market trends in the future. The challenge for every investor will be finding a balance between mimetic prosperity and sacrificial crises within the market.
OFUYC Exchange will continue to monitor market evolution and provide investors with deeper market insights and strategy optimization recommendations. Through in-depth research into the scapegoat theory, OFUYC Exchange aims to help investors better navigate the complexities and unpredictability of the market.