The current ecological activities are very deserted, the on-chain activities have fallen into a bear market state, and the market fluctuations are relatively small. Call it a bear market, the price of Bitcoin is still at a high level, and everyone is still imagining the crazy stage of halving; call it a bull market, various ecological data are at freezing point, and altcoins have even fallen back to the bottom range of the bear market. It is indeed very Tangled.
In the absence of clear good or bad news, the price may fluctuate widely around the current support level. After all, market liquidity is low, prices have not broken out, and investor sentiment remains subdued.
The overall trend is still mainly dominated by the Federal Reserve, and the U.S. macro monetary policy has a more significant impact on the market.
Differentiation is still the main theme now. The fundamental reason for the rise and fall of the market is driven by funds. According to a report by JP Morgan, the net inflow of funds into the crypto market this year is about 12 billion US dollars, of which Bitcoin ETF attracts 16 billion US dollars. Does that mean that in addition to Bitcoin? Outside of currencies, what about the $4 billion outflow of other crypto assets in this “bull market”?
Bitcoin has seen capital inflows driven by ETFs, but many altcoins have been launched with high market capitalizations and are now being lifted. Institutions are cashing out, so how can they rise? The concept of speculation in most altcoins is very enthusiastic, but there is no substantive ecological activity at all. Once the enthusiasm is over, they will naturally continue to fall.
Next, if there are no major events to drive it, the market will most likely show the following state: Bitcoin will continue to fluctuate, and the price fluctuations will not be particularly violent, unless there is a black swan to break this pattern; altcoins will continue to be lifted, institutional funds will flow out, and the market will continue to be weak; From time to time, some hot spots come out to stir-fry.
The best strategy at this time is to enter the market every time the panic decline stabilizes, and withdraw every time you make a small band. Don't be reluctant and have no faith until the new trend of the market arrives.
