Abstract: This article focuses on the phenomenon of Wall Street's involvement in the altcoin market, deeply analyzes the reasons behind it, the price trends and influencing factors of related cryptocurrencies (such as Bitcoin, Ethereum, etc.), and elaborates on the strategies of how to accurately buy and efficiently lock in profits in altcoin investment, providing investors with a comprehensive interpretation of the current dynamics and investment points of the cryptocurrency market.
1. Introduction
Amid the ever-changing cryptocurrency market, a new and eye-catching trend has recently emerged: Wall Street veterans have begun to turn their attention to the altcoin sector. At the same time, Bitcoin has experienced a correction, while altcoin ETFs have soared. Ethereum prices have changed their previous trend and continued to rise, and many sectors have also seen a general rise. What kind of logic is hidden behind this series of changes? How can investors seize opportunities in this wave of enthusiasm to achieve accurate purchases and efficiently lock in profits?
2. New changes in the altcoin market
1. From bleakness to new vitality
Not long ago, the altcoin market was bleak. At that time, the price of Bitcoin was close to $100,000, but altcoins were wailing everywhere. Most market participants’ altcoins were constantly sucked by Bitcoin, showing a downward trend. However, the situation has changed dramatically recently. The average daily trading volume of $Solana’s DEX has exceeded $6 billion.$XRP It surged to $1.63, and Ethereum rose strongly to break through $3,600. The altcoin sector saw a general rise, and the Defi sector rose by 8.47% in 24 hours.
2. Wall Street’s involvement and altcoin ETFs
Wall Street has played an important role in this transformation. Under the unprecedented regulatory benefits, Wall Street has set its sights on altcoin ETFs, injecting vitality into the long-dormant altcoin market. Looking back at the beginning of this round of bull market, the approval of the Bitcoin spot ETF triggered a boom, and then the market had different opinions on the next token that could make Wall Street excited. Solana was once the most popular currency, and related ETF applications continued. Although the SEC's tough attitude in the middle led to a cooling of altcoin ETFs, the market situation is now very different. ETF applications for various altcoins have emerged, such as the Cboe BZX exchange proposed to list a variety of Solana-related ETFs, and the crypto investment company Canary Capital also submitted spot ETF applications for XRP, Litecoin, HBAR and other currencies.
3. Impact of the regulatory environment
The change in the regulatory environment is one of the key factors for Wall Street to get involved in the altcoin market. On the one hand, the resignation of the current SEC Chairman Gary Gensler has put the SEC's strict supervision in recent years on hold, and there are rumors that the Trump administration hopes to expand the power of the CFTC, which may weaken the securities attribute of crypto assets. On the other hand, most of the Trump administration's cabinet members are crypto supporters, and its companies are also making frequent moves, such as Trump Media Technology's proposed acquisition of the cryptocurrency exchange Bakkt and the submission of applications for cryptocurrency payment services. These have rekindled the market's hope for altcoin ETFs and made institutional investors more confident in in-depth research and product development on crypto assets.
3. Price trends and influencing factors of Bitcoin and Ethereum
1. Bitcoin’s pullback and related signs
Bitcoin$BTC After hitting a record high of $98,800 on November 25, there was a significant correction, falling to $90,800 on Wednesday (27th), and then rebounded. There are many signs of its market conditions, such as the Coinbase Bitcoin premium has risen again, indicating an increase in demand for Bitcoin in the US market; Bitcoin spot ETFs have turned from net outflows to net inflows; Bitcoin balances on centralized exchanges have hit a record low, which means that investors are more willing to hold Bitcoin for the long term, etc. These all reflect the market sentiment and potential trends of Bitcoin to a certain extent.
2. Reasons and trends for Ethereum price increase
Ethereum$ETH The continued rise in prices is driven by a variety of factors. First, Bitwise's recent ETF application to the U.S. Securities and Exchange Commission has triggered a high level of market optimism about Ethereum. Ethereum accounts for 16.42% of its proposed ETF based on the existing 10 cryptocurrency index funds. Secondly, Ethereum's own technical indicators are strong, such as rebounding from the 50-period exponential moving average on the four-hour chart and entering the breakout phase of the cup-handle pattern, which all indicate that its price may continue to rise, and it is expected to rise by more than 10% in December. At the same time, open interest in the Ethereum futures market has reached a record high, and the financing rate has continued to be positive, forming a feedback loop that drives price increases.
4. Strategies for accurate buying and efficient profit locking
1. Finding the target token
First, open the https://dexscreener.com website, select a chain (such as Solana), and use the "New Pairs" tab to browse the latest tokens. Pay attention to the tokens that have fallen the most in the past hour, and skip the tokens with a market value of $30K-$40K. The core goal is to find tokens that still have potential after a strong decline. Tokens that initially plunged 70-90% may bring 50-100 times returns if they rebound again.
2. In-depth analysis of tokens
Check the coin holding structure: Use the https://t.me/rickbotsol tool to query token information and ensure that the total share of the top ten coin holding addresses should not exceed 15-20%, and the liquidity should have been locked or destroyed.
Check social media: Check the token’s Twitter and Telegram groups to see how active and supportive the token is. You can also contact the project directly to ask about future plans.
Be wary of initial skyrocketing tokens: Some tokens skyrocketed in the short term after being listed on Raydium but then plummeted. Such tokens need to be treated with special caution.
(III) Entry strategy
Accurate entry requires the help of order blocks. You can use 1-hour, 4-hour, 12-hour or even longer candlestick charts, and choose the entry point when the candlestick chart touches the top, middle or bottom of the order block. It is recommended to use the trading platform provided by http://gmgn.ai to identify and execute trading strategies more quickly.
4. Locking in profits
Early stage: lock in some profits immediately when the price reaches 2x profit.
Later stage: continue to hold part of the position, or adopt batch profit locking (DCA strategy).
V. Market Outlook and Investment Recommendations
Although it is still difficult to realize the current trend of copycat ETFs under the current regulatory background, from a long-term perspective, with the relaxation of regulations and the increase in investor interest, in-depth research by institutions on crypto assets will become an objective reality, the productization and standardization of crypto assets will be further strengthened, and derivatives may usher in a blowout. For investors, whether it is the timing of entry or profit strategy, the core of trading lies in rationality and precise analysis. It is necessary to effectively reduce risks and improve profitability through reasonable tools and methods. At the same time, it is necessary to pay attention to the price trends of major cryptocurrencies such as Bitcoin and Ethereum and related policy changes, grasp market dynamics, and choose potential currencies for investment in different sectors.
VI. Conclusion
The current cryptocurrency market is in a dynamic state of change. Wall Street's involvement in the altcoin market, the price trends of Bitcoin and Ethereum, and the grasp of investment strategies are all crucial to investors. Investors should pay close attention to market changes and flexibly use investment strategies to achieve their investment goals in this cryptocurrency market full of opportunities and challenges.
In short, in this ever-evolving field of cryptocurrency, only by deeply understanding the market mechanism, mastering scientific investment strategies, and paying close attention to changes in various influencing factors, can investors gain profits from market fluctuations and realize the preservation and appreciation of assets.