Not only Bitcoin has been experiencing a decline recently, but the Nasdaq and S&P 500 have also suffered a decline. The US stock market has performed poorly, and the global economic situation is indeed worrying. The Ethan Manufacturing Purchasing Managers Index showed a sharp decline in economic activity. The release of this data exacerbated the panic in the market, causing the US stock market to fall sharply that day. The non-farm payrolls data also showed signs of a cooling labor market, with the unemployment rate rising from the previous 4.1% to 4.3%, increasing the possibility of a hard landing of the US economy, which triggered a large-scale risk aversion.
Now is not the time to discuss whether to cut interest rates in September. It is clear that the Fed has no choice but to cut interest rates, and the probability of a 50 basis point cut has increased significantly. Although the non-farm payrolls data was far below expectations, and the unemployment rate rose, these have increased the possibility of the Fed cutting interest rates as soon as possible, which does look good for Bitcoin, but the problem is complicated. The U.S. stock market has continued to plummet recently, and the performance of large technology giants has been lower than expected, including Nvidia, Amazon and Intel, which have all been lower than market expectations, and the market value and stock price have also been hit hard, further proving the market's concerns about the current macroeconomic conditions.
The future of BTC and ETH is undoubtedly worth looking forward to (BTC target is $100,000, ETH target is $10,000), so what are the opportunities for altcoins and the overall market?
There is no doubt that the L1 and MEME tracks will have prospects.
The fields of gaming and AI are also worth paying attention to. After all, in 2021, the hype in the gaming industry is still very high.
On the AI front, Nvidia’s strong performance will undoubtedly bring this positive sentiment to AI tokens related to the crypto market.
As for other tracks, Defi is an area worth paying attention to. Personally, I think Defi needs new narratives and innovative integrations to attract new liquidity and attention.
If you have limited funds, whether you are an aggressive or conservative investor, you should allocate some BTC and ETH to ensure a reasonable position allocation.
Aggressive investors can focus on the following tracks (especially projects launched on Binance in the past one or two years):
L1、MEME、AI、GAMEFI
For investors seeking conservative and stable returns, the following projects can be considered:
SOL、BNB
Tracks with weak narratives, insufficient liquidity, and low trading volumes should be avoided.
Personally recommended projects:
L1 (stable, conservative): BNB, SOL, TON, INJ (INJ is listed for comprehensive consideration, but in fact BNB, SOL and TON are all good).
In the upcoming main uptrend, I believe that the potential and growth rate of BOME, ORDI and SATS will be higher than those of WIF, PEPE and FLOKI.
Historical experience shows that whenever BTC surges and the market is extremely FOMO, new strong stocks tend to emerge.
The MEME token.
For the AI track, it is currently difficult to find projects that excel in all aspects. Although some people have mentioned WLD, issues such as its unlocking mechanism also need to be considered.
Summarize:
The ups and downs of Bitcoin caught investors off guard.
From the perspective of interest rate cuts, after the release of non-agricultural data, the probability of a rate cut in September has reached 100%, which is generally good news. But why did the market suddenly pull back?
After reading a lot of information, I personally think the biggest possibility is that the non-farm data was almost halved, the economy is close to collapse, and the market believes that the Fed’s September rate cut is too late and should have started in August. So the US stock market began to plummet.
This plunge has brought down the cryptocurrency market. Of course, a 6% drop in Bitcoin cannot be considered a collapse. Shi Yuan believes that there is limited room for decline. It depends on whether 60,000 can hold up. It is not ruled out that it will reach around 57,000.
If the price goes down, it may just be a quick withdrawal. I suggest you buy the dip while the price is falling. For example, buy the dip every time the price drops by $2,000. Don't panic. The general trend is not bad. The expectation of Bitcoin reaching $100,000 during the Spring Festival remains unchanged.
Not only Bitcoin has been experiencing a decline recently, but the Nasdaq and S&P 500 have also suffered a decline. The US stock market has performed poorly, and the global economic situation is indeed worrying. The Ethan Manufacturing Purchasing Managers Index showed a sharp decline in economic activity. The release of this data exacerbated the panic in the market, causing the US stock market to fall sharply that day. The non-farm payrolls data also showed signs of a cooling labor market, with the unemployment rate rising from the previous 4.1% to 4.3%, increasing the possibility of a hard landing of the US economy, which triggered a large-scale risk aversion.
Now is not the time to discuss whether to cut interest rates in September. It is clear that the Fed has no choice but to cut interest rates, and the probability of a 50 basis point cut has increased significantly. Although the non-farm payrolls data was far below expectations, and the unemployment rate rose, these have increased the possibility of the Fed cutting interest rates as soon as possible, which does look good for Bitcoin, but the problem is complicated. The U.S. stock market has continued to plummet recently, and the performance of large technology giants has been lower than expected, including Nvidia, Amazon and Intel, which have all been lower than market expectations, and the market value and stock price have also been hit hard, further proving the market's concerns about the current macroeconomic conditions.
The future of BTC and ETH is undoubtedly worth looking forward to (BTC target is $100,000, ETH target is $10,000), so what are the opportunities for altcoins and the overall market?
There is no doubt that the L1 and MEME tracks will have prospects.
The fields of gaming and AI are also worth paying attention to. After all, in 2021, the hype in the gaming industry is still very high.
On the AI front, Nvidia’s strong performance will undoubtedly bring this positive sentiment to AI tokens related to the crypto market.
As for other tracks, Defi is an area worth paying attention to. Personally, I think Defi needs new narratives and innovative integrations to attract new liquidity and attention.
If you have limited funds, whether you are an aggressive or conservative investor, you should allocate some BTC and ETH to ensure a reasonable position allocation.
Aggressive investors can focus on the following tracks (especially projects launched on Binance in the past one or two years):
L1、MEME、AI、GAMEFI
For investors seeking conservative and stable returns, the following projects can be considered:
SOL、BNB
Tracks with weak narratives, insufficient liquidity, and low trading volumes should be avoided.
Personally recommended projects:
L1 (stable, conservative): BNB, SOL, TON, INJ (INJ is listed for comprehensive consideration, but in fact BNB, SOL and TON are all good).
In the upcoming main uptrend, I believe that the potential and growth rate of BOME, ORDI and SATS will be higher than those of WIF, PEPE and FLOKI.
Historical experience shows that whenever BTC surges and the market is extremely FOMO, new strong stocks tend to emerge.
The MEME token.
For the AI track, it is currently difficult to find projects that excel in all aspects. Although some people have mentioned WLD, issues such as its unlocking mechanism also need to be considered.
Summarize:
The ups and downs of Bitcoin caught investors off guard.
From the perspective of interest rate cuts, after the release of non-agricultural data, the probability of a rate cut in September has reached 100%, which is generally good news. But why did the market suddenly pull back?
After reading a lot of information, I personally think the biggest possibility is that the non-farm data was almost halved, the economy is close to collapse, and the market believes that the Fed’s September rate cut is too late and should have started in August. So the US stock market began to plummet.
This plunge has brought down the cryptocurrency market. Of course, a 6% drop in Bitcoin cannot be considered a collapse. Shi Yuan believes that there is limited room for decline. It depends on whether 60,000 can hold up. It is not ruled out that it will reach around 57,000.
If the price goes down, it may just be a quick withdrawal. I suggest you buy the dip while the price is falling. For example, buy the dip every time the price drops by $2,000. Don't panic. The general trend is not bad. The expectation of Bitcoin reaching $100,000 during the Spring Festival remains unchanged.
