The cryptocurrency market continues to fall. Bitcoin fell below $54,500 today, down nearly 30% from its all-time high of nearly $74,000. Ethereum also fell below $2,850, and a number of altcoins hit new lows. This made Andrew Kang, co-founder and partner of Mechanism Capital, say today:
The most common mistake in the cryptocurrency market is buying too early when the trend turns from up to down.
The adjustments following the collapse of a large market structure are often deeper and longer than most people expect.
Don’t buy Bitcoin when it’s down 10% from its highs, buy it for the next cycle when the market is generally liquidating and most people are exiting the cryptocurrency market and questioning whether cryptocurrencies are dead forever.
Andrew Kang also said that he believes that more than 98% of altcoins have reached their peak in this cycle, and only a few may hit new highs in the fourth quarter of 2024 or the first quarter of 2025, but he believes that Bitcoin is in the transition stage to a super-cyclical asset, retaining the characteristics of previous cycles while becoming more and more of a mature macro asset.
In response to netizens' inquiries about his views on memecoins, Andrew Kang said that memecoins are likely to account for the majority of altcoins that have the opportunity to set new highs, but since there are thousands of memecoins, investment needs to be very selective.
How do you view the future trend of the cryptocurrency market?
Of course, while seizing opportunities, we must also be vigilant about market risks. The cryptocurrency market has always been volatile and the market is changing rapidly. Any negative news may trigger a panic sell-off in the market. Therefore, risk control is always the first priority of investment. As the famous investor Paul Tudor Jones said: "If a losing position makes you feel bad, it's simple: exit quickly, because you will always have the opportunity to enter the market again." When the market is not good, we must learn to stop losses decisively and wait patiently for the next opportunity, rather than blindly relying on luck.
Finally, for ordinary investors, grasping long-term value may be more important than pursuing short-term interests. We must learn to discover and judge those projects that truly have innovative value and application prospects, rather than blindly following the hype of so-called "hot spots". Only when we have sufficient understanding and confidence in a project can we make rational investment decisions.
In summary, the cryptocurrency market in the second half of 2024 will have both opportunities and challenges. Factors such as the macroeconomic situation, regulatory policy trends, and technological innovation progress will have a significant impact on the market. As investors, we must learn to make comprehensive analyses, make prudent decisions, and strictly control risks while seizing opportunities.
Finally, there are still many things that are not written down, such as specific opportunities and specific decisions. These things are often not something that can be summarized in one article.
