Market Dynamics and Crypto Landscape: The Future of the U.S. and Bitcoin
Globally, the wave of cryptocurrencies is intensifying, particularly in the United States, where multiple waves are being stirred up. Recently, Trump appeared on the cover of (Time) magazine, becoming a global focus. He not only rang the market’s bell but also publicly expressed support for cryptocurrencies. He believes that if the U.S. does not strongly support the crypto space, other countries will quickly surpass it. This open and inclusive pattern is an unstoppable trend for the future.
Meanwhile, Republican representatives from Texas have submitted a bill to establish a strategic reserve for Bitcoin. This initiative has quickly resonated with other states, as Pennsylvania, Michigan, and Wisconsin have joined the trend by purchasing Bitcoin ETFs or trusts. Alabama has even proposed Bitcoin as the best asset against inflation, suggested personally by the presiding officer.
This trend is not limited to state governments; major institutions and sovereign funds have also joined the fray. Ray Dalio of Bridgewater Fund pointed out that major economies are facing a debt crisis, and Bitcoin and gold are the real hard currencies. In light of this situation, institutions' frenzied reserves have driven related stocks to soar. For individual investors, it is crucial to operate cautiously with Bitcoin; unless the market surges significantly in the short term, do not sell easily.
Market Review
From the market perspective, the overall market is fluctuating around $100,000. As BTC price gradually breaks through, the overall market capitalization is on the rise. ETH and other altcoins are performing actively, with their proportion increasing, indicating a rise in market risk appetite. The decrease in selling pressure for ETH and altcoins may signal that they are about to start.
Additionally, the increase in risk appetite is also reflected in trading volumes. BTC trading volume has slightly increased, and selling pressure still exists during breakouts. Meanwhile, altcoins continue to rise with lower volumes, indicating that bullish sentiment in the altcoin sector is stronger.
Market Predictions and Operational Recommendations
An important upcoming milestone is the interest rate cut on the 18th. If the Federal Reserve cuts rates by 25 basis points, market sentiment may be reignited, potentially driving a rally. We need to strictly adhere to our trading rhythm, as every pullback presents a good opportunity to enter.
Recent recommendations are:
Control positions and take profits in batches;
Buy in time when strong coins pull back;
Focus on the main storyline and look for the future bull market engine.
Evolution of Main Narrative
Currently, the altcoin market is in a consolidation phase, lacking a strong main narrative. The market's first phase of filling the gaps has been completed, and the overall holding costs have increased. Next, the market will enter the second phase of searching for the main narrative and the bull market engine, where leading coins like UNI and DOT may emerge, similar to the last bull market.
The third phase will be a comprehensive explosion of altcoins, and market sentiment will enter a frenzy. All we need is to remain patient, seize opportunities, and wait for the market to kickstart further.
Strong Sectors and Investment Directions
Currently, the DEFI sector holds the most application value and is the most mature track in the market. The Trump family recently purchased ETH, LINK, and AAVE, further validating the market potential of DEFI. Additionally, strong Meme, strong AI, and strong RWA are also directions worth paying attention to.
Hold spot positions, and if the increase by the end of the month is too large, consider a strategy of withdrawing principal while continuing to hold profits. Align actions with knowledge, and strictly follow the trading plan to go further in a bull market!