During this period, meme coins represented by PEPE and WIF performed very strongly, even hitting record highs. In contrast, institutions performed weakly, and even BTC and ETH performed poorly. The current market is divided into three major modules: BTC and ETH, the two big brothers, and the altcoins and meme coins invested by institutional VCs. The market thought that after the Ethereum ETF was passed, it would finally be the turn of altcoins to rise. As a result, within a few days of rebound, funds returned to meme. In terms of capital flow, BTC and ETH are too large, and only large institutions can buy them. Small funds participating in the market will not cause any disturbances. They can only be driven by the macro-financial environment, and ETF funds currently only have BTC as a target to choose from; most of the altcoins are incubated by VC institutions. As the chips are continuously released, institutions will only take advantage of the rebound to sell; for the hot money in the market, there is indeed only one sector to choose from, meme. Although everyone knows that meme is air and has no actual value, capital always has to do something to make the market look hot.
Since mid-April, funds from ETFs and stablecoins have stopped flowing into the crypto market on a large scale. Currently, the liquidity of the market is provided by stock funds. The rise and fall are completely disturbances caused by the "exhaustion" of liquidity. There is no actual positive or negative news. At present, it is an emotional game. In the next few months, it will probably be this "more rises, more falls, more falls, more rises" pattern until the macro-financial environment changes, and the time node of this macro-environment is likely to be the US election. There is a very different thing about this US election. Cryptocurrency has become an important bargaining chip in the political and financial game between the two parties. It seems that if you don't support cryptocurrency, the votes of the younger generation will not support anyone. Trump praised cryptocurrency in his speech and even wanted to become the first Bitcoin president in the United States. The Biden team was not far behind and "suddenly" promoted the passage of the Ethereum ETF (the market speculated that the passage of the Ethereum ETF was political).
The US election will be held on November 5. Before the election is settled, it is estimated that there is little problem with the US stock market, and the Federal Reserve's monetary policy will not be adjusted significantly. Everything is based on stability. So in the past few months, the Federal Reserve has been sitting still, not saying when to cut interest rates, and is also worried about bringing about large fluctuations in the market.Under this general background, large funds will also be cautious. If ETF and stablecoin funds do not flow in significantly, Bitcoin and Ethereum will not rise sharply again. The stock funds will not patronize the institutional coins that continue to be unbanned, and continuing to hype memes is also a helpless choice.
The next big market will be brought about by the macro-financial environment or the emergence of a large ecosystem in the crypto industry itself. Among them, the Fed's large-scale release of money is more likely to drive the market. Trump asked the cryptocurrency consultant "Can Bitcoin help solve the US debt of 35 trillion US dollars?" What is he thinking? In the end, it can only be solved by large-scale release of money, but after the large-scale release of money, in addition to US stocks, there needs to be another reservoir-the crypto market to carry the flood of US dollar liquidity.
If you don't know how to screen strong coins, then I suggest you follow me. Whether it is spot or contract, a slight shot may be your limit. The opportunity is very short, so you must seize it! Success is not based on luck, choice is greater than hard work, and the circle determines destiny. In the currency circle, in addition to having a sharp eye for judging the situation, you must also keep up with a good team and a good leader. If you follow me, you are already halfway successful in the currency circle!
You can receive the latest free articles in the cryptocurrency circle every day. The articles are good and can be shared with everyone!
