Turnaround after the challenge of altcoins
Although the market has been under strong pressure, I think this is a good sign. Rapid rises are usually accompanied by the problem of insufficient momentum, and adjustments are prepared for a better take-off. There will be a bull market for altcoins in the future. The following is an analysis at three levels:
1. Attracting fresh blood to enter the market:
The decline in the market reflects the supply and demand relationship, indicating that the momentum for the rise has weakened, there are too many profitable plates, and new funds need to enter the market. This stage provides a buffer, giving more people the opportunity to enter the market and giving the new scenario some time to develop.
2. Adjust to prepare for a better rise:
One of the characteristics of a bull market is that there are at least two or three major adjustments in the middle, but the market will continue to rise after each adjustment. Reconsolidation or downward exploration can get some investors out, thereby redistributing wealth. In a bull market, attention should be paid to sentiment and historical data rather than short-term fluctuations.
3. The essence of finance is to transfer wealth:
The market falls in order to obtain more chips, attract more people to participate, and prepare for the next round of rise. The news and technical aspects sometimes contradict each other, and then the sentiment indicators become particularly important.
In this process, the market size has increased, and the overall increase may not be as good as before. For projects such as Meme and AI, there is greater room for hype, but there is also a greater risk of bubbles. For other projects, practicality and protocol revenue need to be considered, otherwise it is difficult to obtain long-term value.
Another important missing is the lack of entry of venture capital. In previous cycles, venture capital and token prices grew in tandem, while in the current cycle, although the price of Bitcoin has risen from $20,000 to $70,000, venture capital has hardly moved. Regulatory clarity and continued capital inflows are essential to maintaining market excitement and FOMO sentiment.
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After the US election, we may see more regulatory clarity, when venture capital may re-enter the field. Don't miss this opportunity to learn more about market trends!
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