The current market is suddenly facing multiple negative factors:
The U.S. Bitcoin spot ETF has seen outflows of more than $1.2 billion for two consecutive weeks.
The scale of stablecoins has stopped growing and failed to bring in net capital inflows.
Miners face continued capital pressure after the halving, leading to a massive sell-off.
Compensation for the 140,000 BTC involved in the Mentougou incident has begun, creating additional pressure on the market.
After a round of hype, AI concepts and meme coins are now in a correction state.
The continued lifting of bans on altcoins has led to a large outflow of funds.
Large new coins continue to be listed at high valuations (FDV), further exacerbating the market's liquidity problems.
These factors have caused institutional traders to shift from arbitrage strategies to caution, with whale trading volume falling by more than 40% and whale traders on derivatives exchanges in a risk-averse mode.
At present, market sentiment is hit by the continuous lifting of the ban on altcoins and the listing of new coins at high valuations. The influence of ETFs has been greatly weakened, the effect of stablecoins is not obvious, and market liquidity is weak. In this context, the lifting of the ban on altcoins and the blood-sucking of new coins have caused great market pressure.
In addition, the ecological activities in the cryptocurrency market are currently at a freezing point. The gas fees on the Ethereum chain continue to be sluggish, showing that the market has low expectations for the implementation of large-scale ecological projects, and is still dominated by hype and news speculation.
In the first half of 2024, the meme coin sector performed outstandingly, with an average increase of about 18 times, while the L2 projects with the best technology and ecology suffered a drop of more than 40%, indicating abnormal market behavior. The reason behind this phenomenon is that meme coins have a small circulation and low market value, which makes them easy to speculate; while institutionally supported projects have a high market value and a large circulation, and the lifting of the ban is ongoing, so funds lack the motivation to speculate.
The current market operation difficulty has reached an all-time high and is no longer operating as usual. In the bull market, projects with excellent technology and ecology have fallen against the trend, while pure meme coins have risen sharply, which is not common in the past market. Since the copycat projects incubated by institutions are generally overvalued, the continued lifting of restrictions in the next few years may limit the development of the market trend bull market, causing the market to fall into a cycle of "more declines and rebounds, more rises and further declines".
In short, the current market is more like the U.S. stock market for Bitcoin and the A-share market for altcoins. For industry participants, holding on to Bitcoin and investing regularly is the simplest strategy. Investments in other currencies will be more speculative, and it is necessary to follow up on market hotspots in a timely manner and be ready to withdraw at any time. In terms of the external environment, the Federal Reserve's monetary policy will continue to be the biggest uncertainty in the market. Investors should not expect interest rate cuts to change the current market landscape, but need to pay attention to whether a larger-scale quantitative easing policy will drive the entire market up again.
#以太坊ETF批准预期 #美联储何时降息？ #MegadropLista #ETH🔥🔥🔥🔥 #BTC☀
If you want to get more knowledge and the latest information about the cryptocurrency circle, check out the introduction and get the position allocation strategy, which will teach you how to make money in a bull market and earn coins in a bear market.