In the "618" promotion of the currency circle, is there any hope for altcoins? Insist on being a diamond hand, and the light is just around the corner.

Yesterday, the market situation became extremely bad, and altcoins plummeted.

I just scanned the market and found that many currencies have returned to the prices in April this year. Some currencies even fell directly back to the prices before the pull-up in October last year. The current market has entered a deep wash-out stage.

The reasons for this bull market that have nothing to do with altcoins are as follows:

First, the approval of ETFs has led to changes in the liquidity transmission mode of the market. In the past, the incremental funds entering the market were generally "stable coins - BTC, ETH - altcoins", but now the incremental funds from the traditional market will be more inclined to directly invest in BTC in the form of ETFs, which also leads to the inability of funds to continue to transmit, resulting in a lack of liquidity in the altcoin market.

Second, the continuous unlocking of "VC tokens" has brought continuous selling pressure, resulting in a market pattern of "supply exceeding demand" - if you look closely at the circulation changes of some altcoins, you will find that although the prices of some tokens continue to fall, the circulating market value continues to hit new highs.

Third, popular projects are queuing up to go online, and FDV generally reaches the level of billions of dollars, which further exacerbates the lack of liquidity in the altcoin market.

The most important of these three points is also the main reason for the decline of altcoins

It is the first point

Because the current capital flow is through ETFs

So the liquidity of altcoins is insufficient

But don’t panic too much

Just wait for the Fed to cut interest rates and release liquidity

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