August 24, 2024
Today is a good day. Not only did the big cake surge to the pressure level of 65,000, but some of the copycats I bought at the bottom also made it to today's gain list, such as LQTY, XVS, OSMO, etc. The fundamental reason for the rise of the market is what I have been saying recently, "sideways instead of falling". After fully digesting the low-priced chips, the resistance of the main force to pull the market is small. The direct reason for the rise of the market is Powell's statement in Jackson Hole: the right time has come, and the United States is ready to start lowering interest rates. The last rate cut dates back to 2020.
There is no doubt that once the interest rate cut cycle begins and the quantitative easing policy is increased, the liquidity of the market will become very abundant, and the cryptocurrency circle, as a mainstream emerging investment market, will definitely take on this wave of capital overflow. Therefore, in the long run, the market will eventually rise back, and I am very confident in the bull market next year. Of course, I have to pour some cold water first, because the current economic market is running smoothly, and the Fed's interest rate cut policy will not be too fast or too drastic, and it will definitely not cut interest rates sharply in the short term. Therefore, I estimate that it will take more than 3 months for the real flood of money to flood the market.
From a short-term perspective, if the bargain hunting chips around the 8th to 5th are profitable, especially if some of them are more than 50% or even doubled, then my suggestion is to stop the profit first. This wave of rise is mainly driven by emotions, so it is completely possible to sell out the capital first, or exchange the profit of the copycat into the big pie ether. Data shows that spot ETFs yesterday had a monthly net inflow of US$250 million. It can be seen that those over-the-counter funds have basically never stopped buying the big pie, and ETF is the most important channel for capital inflows. In the long run, the big pie will benefit from more liquidity. obvious.
Another noteworthy news is that the Ethereum Foundation transferred 35,000 ETH to Kraken, worth about 94 million US dollars. According to previous operations, this is a transfer for sale. Generally speaking, this selling operation will not be a direct smash, but seek a better price. Therefore, there will be some resistance to the rise of Ethereum in the short term. In addition, Bitcoin is also at the pressure level of 65,000. Combining various situations, it is not a problem to stop profit in the short term. In addition, we have a large position in hand, which does not affect the judgment of the general bullish direction.
There are only a few days left, please go to my homepage and cast your precious vote!
