Altcoin market: opportunities and risks coexist
Since the sharp drop on December 9, the altcoin market has quietly gone through a 10-day period of shock adjustment. At present, most altcoins are in the "second test" stage. From the perspective of trading volume, it has shrunk compared with the past, which to a certain extent reflects the reduction of market selling pressure.
Looking back at the small correction of Bitcoin on November 22, altcoins have ushered in a round of general rise since then. Today, Bitcoin is showing a correction trend again, which may become an opportunity for altcoins to rise again after completing the test.
However, we must be soberly aware that the current market environment is different from before. On the one hand, the supply growth rate of USDT has slowed down, which means that the abundance of market funds is not as good as before, liquidity is relatively limited, and the driving force of funds has weakened.
On the other hand, Ethereum quickly started a new round of rise after the adjustment, while the current trend of Ethereum is relatively flat and has failed to show strong upward momentum, which also affects the performance of the entire altcoin market to a certain extent.
Therefore, in the altcoin market, opportunities and challenges coexist. We can explore potential trading opportunities with a cautious attitude, but we must not be blindly optimistic or overly aggressive. We should fully weigh the risks and benefits and move forward steadily.
