The liquidity bull market is coming, how to play the market after it is added?
Recently, many altcoins have risen. In my opinion, it is just an oversold rebound. Many altcoins in this round basically cannot return to their historical highs, especially some old coins. Yesterday, I discussed uni, aave, bch, etc. with my friends. I have a special liking for these. I personally think that basically they can't return to their historical highs. There are two logics for speculating in altcoins at present:
1. The expected value of current business growth is realized.
This is the logic of old DeFi! In the last round of bull market, in the growth trend after they just went online and washed the market, they realized the expected value of business growth at that time, and had completed their life mission in advance. In the end, the value will be slowly diluted in the ocean of homogeneity.
2. The expected realization of future potential market value.
For speculating in public chains, all public chains will have a wave of high multiples after landing in the secondary market and washing the market sideways, but most of them are still unsustainable. Refer to the last round of AVAX, NEAR, FTM, MINA, etc.
The market is lacking two things now: liquidity + hot spots
Essentially, only one thing is lacking, which is liquidity, because hot spots are something that can be manipulated artificially. Once liquidity is up, hot spots will not be a problem.
The US election will be held in early November, which is the best time for liquidity, so we will take advantage of the situation to sell. It is expected that the US debt ceiling will be raised sometime in January or February, and then return to the market. Once the US debt ceiling farce is over, liquidity will flow from the Treasury and the Federal Reserve to get the market back on track. Then, the bull market will really begin, and $100,000 Bitcoin is still worth looking forward to.
