Why is the big altcoin craze still not coming?

Murad Mahmudov, a well-known financial analyst, is convinced that the big altcoin season will not come due to the decline in the accumulated excess savings of American households.

According to recent data from the Federal Reserve Bank of San Francisco, Americans have now spent their savings. The sharp increase in savings between March 2020 and August 2021 was driven by a huge drop in consumer spending.

Economists at the Federal Reserve Bank of San Francisco said that excess savings peaked in August 2021, exceeding a staggering $2.1 trillion.

Although these savings are now largely exhausted, reports suggest that the strong labor market may make it possible to maintain spending. That said, recent earnings reports from large companies such as Amazon show that consumers are becoming more budget-conscious.

Considering that Americans are now more cautious about spending compared to 2021, Mahmudov suggests that they are less likely to waste their cash on riskier altcoins.

"The best you can hope for is an occasional, well-timed spike driven by a particular crypto-native PvP hot moneyball that performed well that month," he said.

The analyst also pointed out the fact that altcoins are in oversupply. "With every new token released, the number of altcoins and the total fully diluted market capitalization are growing," Mahmudov added.

Comparing the current market cycle to 2017, the analyst pointed out that the market size was much smaller at the time, which meant that less capital was required to achieve significant growth. In addition, it was much more difficult to create new tokens at the time.

This is also one aspect that I have always emphasized that this bull market is different from the previous one.

If you want to dig deep into the currency circle, but can't find a clue, you can read my homepage introduction if you want to get started quickly. I hope our encounter is friendly.

#CRV #美联储何时降息？ #美联储连续第七次维持基准利率不变