Altcoins generally fell by about 10%, but AI and meme sectors are still very strong. So how will the market go next?

In the short term, the market is likely to have a wave of correction. Now the market sentiment has reached a staged high point. It is recommended that those who rush to the chain should be cautious, because no one may take over. In addition, I have observed that many value projects, such as ltc, iotx, and io, have begun to transform into MEME coins, and even institutions like animoca have begun to issue MEME coins. This shows that the market sentiment is a bit too FOMO, and sickles have begun to fall. There are too many people cutting leeks, and there are not enough leeks. From an emotional point of view, this rise is mainly due to the stimulation brought by Trump's coming to power, but it is still some time before Trump officially takes office. When there is no new event driving, FOMO sentiment will naturally decline, which is inevitable.

Next, from the perspective of liquidity, it is still in the stage of monetary tightening, liquidity is not very good, and the Federal Reserve is still shrinking its balance sheet. The current liquidity mainly comes from the stimulation of funds on the market, and everyone is looking forward to the next good news. To put it bluntly, it depends on faith! Although OTC funds are also pouring in, such as BlackRock has been buying Bitcoin spot ETFs, this part of the funds has begun to show signs of decline. According to ETF data, the US Bitcoin spot ETF had a net outflow of US$220 million yesterday.