Bitcoin's plunge: the calm before the storm? Which sectors are the most resilient?
Bitcoin, the once glorious digital currency giant, is now in an unprecedented predicament. Five consecutive days of plunges have pushed its price to the brink of $60,000, as if it would fall into the abyss at any time. Strategists at JPMorgan Chase even directly warned that Bitcoin's decline in the short term seems unstoppable.
Behind this plunge is the ruthlessness and cruelty of the market. The 10 Bitcoin spot ETFs in the US stock market have seen large-scale capital outflows, which undoubtedly worsens the price of Bitcoin. The total market value of the cryptocurrency market has also fallen by more than 17% in the past two months, and the market value has evaporated by more than $500 billion, which is undoubtedly an astonishing figure.
The market generally believes that the slowdown in the inflow of funds into the US Bitcoin spot ETF and the profit-taking of investors after the "halving" have jointly led to the decline in Bitcoin prices. These negative news are like heavy bombs, constantly bombarding the confidence of the Bitcoin market.
Investing in Bitcoin is like playing a high-risk game. In this game, only those investors who can accurately judge the market trend and bear huge risks can become the final winners. Therefore, before making an investment decision, it is necessary to conduct sufficient personal research and risk assessment.
Finally, I want to say that the plunge of Bitcoin is not the end, but a new beginning. Only those investors who can persist in adversity, continue to learn and grow, can be invincible in the future market.
Which sectors are most resistant to declines? First of all, each round of bull market outbreak is accompanied by the outbreak of the main narrative to drive market heat. The last round of bull market was led by the outbreak of Defi of major public chains.
In this market, which coins should we layout and which sectors are easier to pull the market?
(1) AI sector
There is no doubt that AI has set off a wave of sector rises in this round. At the same time, the AI wave in the external global market has created the strength of this sector. This round of AI must be a main narrative sector. The characteristics of this sector currency are that the rise is continuous, funds are actively flowing in, and each decline and rebound performance is relatively good. This is also one of the key points that need to be paid attention to in the future.
Google will also hold a developer conference on May 14, and AI is the top priority of this conference, so this is the second positive news for the AI sector this month. That is, Nvidia's financial report will be released on May 22, and the market is expected to grow by 400% year-on-year. In addition, Nvidia's stock price has also started to soar recently, taking various AI projects with it.
(2) MEME
The meme sector adheres to the characteristics of fair launch and full circulation without unlocking. The meme model is fairer, so this round of performance is extremely eye-catching. The fully circulated meme coins give the dealers the ability to buy and accumulate real money if they want to control the market. At the same time, the subsequent pull-up will be more intense than other coins, and retail investors are more willing to follow the purchase, making the liquidity extremely good and providing more convenient conditions for the final shipment. Therefore, this situation is what everyone wants to see. This is also one of the main narratives of this round.
(3) Sol Ecosystem
Sol's trading and issuance are extremely smooth and the cost is relatively low. In particular, Sol's price was seriously underestimated in the last round of bear market due to FTX reasons, and there are still investment institutions from Wall Street in the United States standing behind it. In other words, in order to clamp down on the monopoly of Ethereum, qun scab wei: zy50871 This round, it has become the top 3 of the cryptocurrency ecosystem by issuing meme coins. However, the overall ecological valuation is actually low, which also means that there is greater room for development in the future, which is worth paying attention to!
Finally, I want to say that the plunge of cryptocurrency is not the end, but a new beginning. Only those investors who can persist in adversity, continue to learn and grow, can be invincible in the future market.
