The recent market trend is not satisfactory, even more sluggish than in early May. Investors generally feel that no matter which asset they choose, it seems difficult to escape the fate of losses. Once strong assets now appear weak and powerless, and are declining all the way.
People can't help but ask, is the market lacking popularity or capital?
In fact, both seem to be lacking. We have observed that the same old faces are still participating in market activities around us, while the inflow of new funds has almost stagnated, and there is even a trend of capital outflow. Today, I heard that an investor tried to deposit funds, but was noticed by the Anti-Fraud Center, which undoubtedly added a bit of tension to the market.
In this context, it seems that there is no hope for new incremental funds in the mainland market. Affected by the restrictions on deposits and withdrawals, we may need to rely on the support of overseas investors. However, the main incremental funds and user groups in the market currently come from ETFs of US stocks, and they mainly focus on Bitcoin, which has no direct connection with the altcoins we care about.
So where does the money for altcoins come from? It may depend on which investors are willing to take higher risks.
Looking back, I once suggested that everyone pay attention to investment opportunities in altcoins because the prospects of Bitcoin were unclear at the time. However, it turns out that only Bitcoin can steadily maintain and increase its value, while other altcoins generally perform poorly.
Faced with the high dispersion of funds and the phenomenon of mutual non-acceptance in the market, we can't help but wonder whether this is just a form of self-entertainment in the market? When a new altcoin project is listed, everyone says they will not participate in the acquisition. However, once the market fluctuates, these investors begin to panic and even regret it when the price rebounds.
In fact, the core of the problem lies in whether the market has enough motivation to push up prices. As long as there is motivation to pull up the price, investors will follow suit; otherwise, there will be a phenomenon of no one taking over. This undoubtedly brings great challenges to investors.
Take a popular project as an example. When you hesitate when its market value is low, and then watch it soar to hundreds of times the market value, will you regret missing the opportunity? And when it falls back to a certain level, will you be tempted to enter the market again? This is actually a process that constantly tests the mentality and judgment of investors.
Whether it is an on-chain project or an exchange transaction, we can find a common point: hot spots are always highly concentrated and fleeting. Once the hot spots dissipate, the market will fall into silence. From the previous meme coin craze to the subsequent new concepts, the market is always chasing new hot spots, and investors need to remain vigilant and keenly observant at all times.
So, how should we deal with this challenging market? First of all, stop loss is an indispensable principle in trading. Many investors are often unwilling to accept reality when facing losses, and always want to get back their money before exiting. However, this approach often leads to greater losses. Therefore, learning to stop loss in time is a skill that investors must master.
In addition, we also need to learn to find the real value from the market. In this era of information explosion, investors need to have the ability to discern information and find projects with real potential for investment. At the same time, we must also recognize the complexity and uncertainty of the market and not blindly follow the trend or listen to rumors.
In general, the current market environment is indeed full of challenges and uncertainties. However, this does not mean that we should give up investing or lose confidence in the market. On the contrary, we should be more cautious in analyzing market dynamics, formulating reasonable investment strategies, and strictly implementing stop-loss principles to reduce risks and gain returns. At the same time, we should also maintain a calm mindset to face market fluctuations and changes, and not let emotions influence our judgment and behavior. Only in this way can we remain invincible in this challenging market.
This is the end of the article. I will do a more detailed analysis in qzi. If you want to join my qzi, please go directly to my personal profile.
