The current dominant trend in the market revolves around Bitcoin and Dogecoin. The rise of Bitcoin is attributed to the frenzied buying from central banks and institutions, which has accelerated this increase and led to more institutional participation, creating a positive spiral: the more it rises, the more it attracts additional institutions, further enhancing Bitcoin's status as an international reserve asset. On the other hand, the rise of Dogecoin is boosted by support from Musk and the situation following Trump's election, combined with the involvement of mainstream funds and the enthusiasm of retail investors, creating strong market momentum. In the future, the expected benefits for Dogecoin include potential access to platform X, making it seem like breaking the $1 price barrier is merely a matter of time.
Additionally, the AI sector has recently shown strong performance, with projects like $WLD and $Render leading the charge. The DeFi sector has also performed robustly, with projects like $ENA, $UNI, and $AAVE showing good results. However, overall, significant funds have not yet flooded into the altcoin market, with price increases mainly concentrated in some strong currencies. If Bitcoin rises again or consolidates, it could trigger another wave of increases in altcoins, but at this time, taking profits remains key.
Future trading strategies will change, and market participants need to adjust their thinking in a timely manner, focusing on the flow of mainstream funds. Unlike the bull market in 2021 driven by DeFi, the 2024 bull market is driven by large-scale Bitcoin purchases from central banks and institutions. Therefore, the current market environment and logic differ from before; while there hasn't been a clear sector rotation, the overall market is in a state of collective increase, but meme coins (like $DOGE and $NEIRO) still dominate. Meanwhile, the strong performance of DeFi projects should not be overlooked; projects like $ENA are worthy of special attention.
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