Bitcoin surged this morning, with prices hovering around $65,600 at the time of writing
It is worth mentioning that although Bitcoin and the stock market are somewhat decoupled, we should also pay attention to the trend before and after the opening of the U.S. stock market in the evening. If Bitcoin can follow the U.S. stock market in the future, there will be a chance to see further growth. At present, the general trend direction remains unchanged, and small-cycle corrections should be cautious not to sell at a loss.
Is this bull market not as explosive as the last one?
In 2020, in response to the impact of the epidemic, the Federal Reserve cut interest rates by 150 basis points within a month, and countries around the world quickly followed suit. This led to an explosive rise in Bitcoin, which rose to $65,000 in half a year, a 20-fold increase. However, due to the cessation of monetary easing, Bitcoin only rose slightly to $69,000 at the end of the year, basically the same as the high point in April.
This round of the cycle is a slow release of liquidity, and the interest rate is expected to be cut by 200 basis points in the next six months, rather than a rapid reduction to the bottom like in 2020. Therefore, this round of bull market is more like 2017, which will be a continuous rise process, and it rose for a full year and a half. The currency circle did not rise from March to September this year because the Federal Reserve has not cut interest rates, and the market lacks incremental funds, resulting in sideways trading. But now major economies such as the United States, China, and Europe, except Japan, are gradually moving towards quantitative easing, and with the approval of Bitcoin ETF, a bull market is brewing. All you need to do is hold your coins and wait patiently. There may be a 3 to 10 times return next year.
It is expected that in the next six months, the Federal Reserve will gradually cut interest rates by 200 basis points, rather than quickly lowering them to the bottom as in 2020. The gradual advancement of monetary easing means that the rhythm of this bull market is more like that of 2017, and the market will continue to rise for a long time, rather than a rapid surge in a short period of time.
From March to September this year, the performance of the Bitcoin market was relatively flat. This was mainly because the Federal Reserve had not taken any actual action and the market lacked incremental capital support, causing the Bitcoin price to remain sideways during this period.
The interest rate cut cycle has begun and a big market trend is on the way. What is the best investment strategy at present?
The short-term strategy can be more conservative. There are no catalysts in the market before the election. The overall market may have a clear direction after the interest rate cut in November and the election. Assets still depend mainly on the election. There is currently no obvious improvement trend in the liquidity of the altcoin market, and the structural problems of the altcoin have not been solved. The core promoters of the meme sector are also facing some problems. There may be fewer high-quality opportunities than before, and subsequent economic data and elections will be needed to bring some breakthroughs.
If BTC cannot achieve a breakthrough, the outlook will be even less optimistic. Therefore, despite the continued rise of BTC.D, the BTC-based strategy still has investment significance. On this basis, investing small-scale funds in some hot tracks (such as Meme) is a better combination.
PEPE, the zero-crazy demon, is undoubtedly one of the most eye-catching new stars this year. This meme coin with the image of the internet celebrity Pepe the frog has become the new boss in the Meme coin field with its unique charm and unlimited potential since its emergence in April 2023.
PEPE was very popular earlier this year, with its price soaring to a record high of $0.00001718. But unfortunately, the good times didn’t last long, and it fell 37%, causing many early investors to cash out. However, I still think the future of PEPE is worth looking forward to!
Pepe Coin is up 4.4% in the last 24 hours after recovering from its previous decline. Analysts expect higher profits; despite market volatility, Pepe Coin remains above important support levels, as evidenced by a strong RSI indicator of 65.65. If market conditions stabilize, analysts predict that Pepe will break through resistance and move higher.
2. The effect of interest rate cuts has not yet emerged
The interest rate cuts started by the US Federal Reserve last month are likely to bring more capital inflows to the cryptocurrency market. Analysts at JPMorgan Chase pointed out that the potential impact of the Fed's interest rate cuts has not yet been shown, and the correlation between the overall market value of the cryptocurrency market and the US federal benchmark interest rate is still weak, at 0.46.
Talking about the copycat market, the weekend trend is still meme. This track has gone through countless cycles. This wave is the turn of bome and slerf period projects. New memes are also emerging frequently. The previous AI meme turbo was also listed on Binance. The third and fourth leaders of the AI meme track will definitely come out one after another.
