Economic data reveals that the U.S. economy is cooling down, and interest rate cuts may be premature. With the release of various economic data, signs of a cooling U.S. economy have become increasingly apparent, which has also boosted market expectations that the Federal Reserve may cut interest rates ahead of schedule.
The interest rate cut originally planned for December this year is now expected to be implemented in September. At the same time, the price of Bitcoin has also soared, breaking through the price barrier of $70,000 per coin. The huge changes in this round of bull market have aroused people's attention and doubts about altcoins. Do altcoins still have a chance?
It will be revealed to you next.
Market Analysis: The small non-farm data released last night showed that the increase in private sector employment in the United States in May was lower than expected, which was a positive for the market. However, the key this week lies in the non-farm data to be released at 8:30 pm tomorrow. According to expectations, if the non-farm data is lower than expected, it may stimulate BTC to challenge the high point; but if the data is higher than expected, BTC will face the risk of a sharp correction.
Therefore, tomorrow's non-agricultural data will become the focus of market attention. ETH may become the new favorite? The difference between this round of bull market and the past is the different sources of funds. In the past, BTC and altcoins soared together, but now BTC and altcoins are two different worlds, seemingly in harmony but actually far apart. This is because the funds driving BTC's rise are no longer mainly from Binance and Coinbase, but from ETFs (inflows of $800 million the day before yesterday and $300 million yesterday).
Under the high interest rate policy of the Federal Reserve, the amount of funds in the BTC market is limited, and it is mainly arbitrage. Soon, with the approval of the ETH spot ETF, ETH and altcoins will also form two worlds. The funds that drive ETH up will come from investors outside the crypto circle. Therefore, consider buying ETH, accounting for at least 20% of the position.
Strategy Recommendation
1. It is expected that BTC will complete the third wave, and the allocation will be 30% BTC, 40% ETH/SOL/BNB, and 30% popular altcoins;
2. At the end of December, BTC is expected to enter the top range, with 30% USDT arbitrage, 30% ETH/SOL/BNB, and 40% popular altcoins;
3. By the end of March 25, it is expected that the altcoin season will end, with 90% USDT and 10% popular altcoins;
4. Starting from April 25, we will gradually clear our inventory.
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