The first rate cut of 50 dps will not be able to provide much liquidity to the market for the time being, but continuous rate cuts for 3 to 5 months will definitely provide liquidity to the market.
From a micro perspective, if we look at the timeline for the cryptocurrency industry, in the early stages of the bull market, at least the Mentougou incident and the negative news about Bitcoin in Germany were digested by the market, with prices rising first and then falling.
But from a macro perspective, there are two possible risks when the Federal Reserve cuts interest rates in history.
First: interest rates are being lowered and then raised. The problem here is that altcoins may soar, and then plummet when everyone thinks the bull market is coming.
Second: During the period of interest rate cuts, a major financial crash occurred. This has happened several times in the history of the Federal Reserve's interest rate cuts. This is even more of a cliff-like crash. The invisible hand is manipulating the market, but there is no need to worry, the time for short selling is limited.
In the current market environment, Bitcoin will not enter a bear market unless it effectively falls below $50,000. Considering the current macroeconomic environment, the probability of falling below $50,000 again is already very low. If Bitcoin can break through $70,000 again, then the real main uptrend is likely to start at any time. The market has been volatile for more than half a year and may usher in a breakthrough at any time.
But it is worth noting that the engine of the bull market cannot be seen only in Bitcoin. Ethereum and small coins must create a money-making effect together to allow the bull market to fully unfold. If only Bitcoin rises alone, this wave of market may seem a bit "lonely", making people doubt the sustainability of the market. Therefore, the Bitcoin bull market is almost certain, but the performance of small coins requires real spillover of liquidity to see their substantial rise.
In summary:
Bitcoin will be the core of this trend, but whether it can drive the entire market depends on the performance of Ethereum and other small coins.
The driving role of Ethereum cannot be ignored. Only when it leads more small coins to achieve profit effects can the bull market spread across the board.
While paying attention to Bitcoin, investors should also pay close attention to the developments of the Ethereum and small coin markets, and adjust their strategies in a timely manner to welcome possible major uptrends.
The key to this wave of market conditions lies in the flow and spillover of market funds. Only when liquidity spreads to small coins can the entire crypto market usher in real prosperity.
Potential altcoins worth watching
1. ETHFI
In the field of decentralized finance (DeFi), ether.fi is increasingly playing a key role as a leading non-custodial staking solution. Its innovative mechanism allows users to earn returns through staking while maintaining full control over their crypto assets. This non-custodial nature is very attractive to users who are seeking high returns in the current market environment but do not want to trust their assets to a third party.
Over the past month, ether.fi’s weETH/eETH has become the most talked-about liquid recollateralized token (LRT) on the market, attracting significant inflows, with net inflows reaching $252 million. Meanwhile, bridging protocols and user accounts such as EOAs and Safes also witnessed significant capital inflows, at $52 million and $39 million respectively, further demonstrating the market’s confidence in the platform.
Looking ahead, if ether.fi can maintain this strong inflow trend, the ETHFI token is likely to rebound from current levels. Once the price breaks through the key level of 1.67, the token is expected to start a strong upward trend, indicating a possible 3-6x increase. For users of the Ethereum staking market, the re-staking function provided by ether.fi will become a core tool to unlock liquidity and improve asset utilization.
As the DeFi market continues to develop, ether.fi may become a force that cannot be ignored in the Ethereum ecosystem in the future with its innovative staking solutions and strong market performance.
2. AWAY
Terra Classic (LUNC) is the earliest token of the Terra blockchain and has attracted much attention for its innovative stablecoin system. By pegging its stablecoin to real-world fiat currencies, Terra aims to reduce the volatility inherent in cryptocurrencies and provide a more stable global payment solution.
The split of the Terra blockchain in 2022 resulted in the creation of Terra (LUNA) and Terra Classic (LUNC). This split is similar to the split of Ethereum into Ethereum (ETH) and Ethereum Classic (ETC) in 2017. Despite the transformation, LUNC remains an important part of the Terra ecosystem, continuing to support efficient transactions and stable payment functions.
LUNC's stability and efficient transaction processing capabilities make it a strong choice for investors seeking long-term value and stability. With the expected further growth of the crypto market in 2024, LUNC is likely to attract more attention, especially in the field of global payment solutions. Its similar divisive background to Ethereum Classic and its innovative potential make Terra Classic likely to occupy an important position in the future altcoin market.
If Terra Classic can continue to advance its promise of stability and innovation, it is expected to play a key role in the next altcoin bull run and become a star project in the eyes of investors.
3.TON
Toncoin is a high-profile token in the cryptocurrency space. Its close integration with Telegram and its powerful ecosystem give Toncoin unique advantages. Especially after the Durov incident, Toncoin has attracted more investors' attention and has become the focus of market attention.
Currently trading at around $5.7, Toncoin is expected to continue its bullish run by the end of 2024. The market predicts that the coin may surge to $19.54 and stabilize around $15 thereafter. This means that Toncoin may present short-term profit opportunities for investors, especially if the market remains optimistic about its prospects.
As the Telegram community continues to grow and the application scenarios of Toncoin expand, the performance of this token may exceed expectations in the future. For investors, Toncoin is a project worthy of attention and evaluation, which has both short-term profit opportunities and may become a highlight of long-term investment.
