Changes in investor sentiment:
Recently, the market's attention to projects with high valuations and low circulation has significantly weakened. Due to the massive selling of tokens in the hands of VCs, the market experienced high selling pressure, causing the market to become depressed.
Investors' enthusiasm for participating in projects is gradually weakening, and they have begun to stop taking orders. Now they are looking for fully circulated or more stable underlying projects.
Differentiation of market structure:
The price of the pie and the performance of large-cap stocks are relatively outstanding compared to the altcoins, attracting a large amount of funds, while most altcoins failed to obtain sufficient financial support.
As the market matures, funds flow to more liquid and lower-risk assets, resulting in a significant differentiation in the market structure.
Macroeconomic factors:
The fluctuations in U.S. stock prices have had a significant impact on the crypto market. In particular, the performance of the big technology and chip sectors is directly related to the overall trend of US stocks. Once adjustments occur in these sectors, the risks will also be transmitted to the currency market, increasing market uncertainty.
Risk Management:
Investors and institutions are paying more attention to risk management and avoid making large investments in markets with high uncertainty. The risk of a correction that U.S. stocks may face has further increased the volatility of the currency market and prompted investors to be more cautious.
Choose investment targets carefully:
Avoid projects with high valuations and low liquidity:
Choose projects with reasonable valuations and sufficient circulation to reduce the risk of selling pressure caused by unlocking tokens.
Focus on promising areas:
Invest in projects with long-term development potential and practical application scenarios, such as DeFi, NFT and infrastructure projects.
Diversify investments and reduce risks:
Diversify your portfolio:
Don't invest all your money in a single asset or market. Diversification can effectively reduce risk. Investing across markets: Consider diversifying between traditional financial markets and crypto markets to balance the volatility of different markets.
Learn and improve yourself:
Continuously learn market knowledge: Learn market analysis, investment strategies, risk management and other knowledge through various channels to improve your investment capabilities. Participate in communities and discussions: Actively participate in cryptocurrency communities and discussions, exchange experiences and opinions with other investors, and jointly improve investment levels.
