The market had a slight correction yesterday, but judging from the price trend, it was actually okay and did not fall much.
There is not much BTC flowing into the exchange + stablecoins have strong bottom-fishing power, so this is not the beginning of a bear market. If a bear market is coming, stablecoins will gradually flow out of the exchange and will not show such a strong bottom-fishing power. So I am still optimistic about the bull market after the interest rate cut.
The current general trend is bullish, but there may be a pullback due to negative news in the middle.
If you buy it and go all in, then forget it, hold on firmly and hold on even if there is a pullback.
If you haven't bought much and still have plenty of money, then buy in batches. Look for an opportunity to buy a portion of it during the weekend pullback, for example, 30% of the position. Wait for bad news to buy another 30% of the position. If you have already bought more than 70% of the position, don't chase the rise, brother. At least you still have money, and you can buy in in case of a pullback.
Market trends and favorable factors
The current market has clearly sent out a bottom signal. Bitcoin has bottomed out near $49,000, indicating that the low point of this round of bull market has been established once. In the future, we may not see Bitcoin prices below $50,000 again. The long lower shadow on the weekly chart, accompanied by the increase in trading volume, further confirms the strong reversal trend of the market.
At the same time, two major positive events are poised to take place:
First, Binance founder CZ is about to be released from prison. This news will undoubtedly stimulate heated discussions and speculation in the market, injecting new vitality into the market.
Second, the expectation of interest rate cuts is approaching, which will further drive capital flows into the crypto market and add momentum to the bull market.
In addition, Grayscale recently supported the two major projects TAO and SUI and announced the establishment of two new single-asset crypto investment funds. This move not only demonstrates Grayscale's confidence in these two projects, but also provides investors with a new focus. In the future, the trends of these two funds will be worth our close attention.
Looking ahead, the bull market is expected to really start between the end of September and the beginning of October. Before that, the market may experience a period of ups and downs, which is a great opportunity for bankers to absorb funds. The real bull market will start after the implementation of the interest rate cut policy to release more liquidity and provide strong support for the market.
Which copycats will have the wealth-creating effect in the future market?
First, the application scenarios are particularly clear, and people outside the circle can understand them at once, whether it is the distributed storage that broke the circle back then, or games, or NFT digital collections.
Second, traditional industries have already seen pain points or bottlenecks, and are in urgent need of projects that truly break the circle. For example, distributed storage is a false pain point, so it is a false breakthrough. Distributed AI is also a false pain point, because AI development has just begun, and it is unknown whether blockchain is needed. DEFI is a true breakthrough, because the threshold and fees of traditional finance are indeed very high, and the procedures are complicated. RWA has the potential to truly break the circle, because the financialization of physical assets is the best way to solve the current slow asset turnover and low sense of value.
Third, the track or project itself already has the ability to solve pain points, rather than just talking about it on paper, which is far from meeting the actual application needs. Therefore, FIL does not have the ability to solve pain points at all. The biggest problem of RWA is that it cannot be widely implemented in terms of legal policies. Not only FIL, but most of DEPIN are false concepts. It will take a long time for the capabilities of distributed physical devices to achieve the same performance as centralized physical devices.
Fourth, the money-making effect must be considerable, whether it is using stable returns to attract traditional funds or allowing a large number of low-threshold users to obtain minimum living security with a very low investment.
Fifth, the spending scenario is particularly strong, which is the easiest to generate consumers, and it is best to have such a scenario in WEB2. Don't let the so-called wool comes from the pig, and the dog pays for it.
Sixth, there are natural traffic ports. Either traditional self-contained traffic or the massive traffic on TON can be used for direct conversion.
If the above characteristics are met, then from the first perspective, there is a natural and rigid demand to break the circle, the technical ability to break the circle, and the momentum to attract and retain traffic.
