About this round of bull market
1. Reasons for early start: The launch of Bitcoin ETF has made this round of bull market start earlier than before. During the last round of bull market, altcoins were still hovering at the bottom at this time, and did not start to explode until July and August. Currently, Bitcoin is experiencing a normal correction after halving, and perhaps July will usher in the spring of altcoins.
2. Liquidity of the financial market: The overall financial market is not lacking in liquidity, and the US stock market has performed well. However, the currency circle has not been able to attract new funds due to the lack of innovation. If the Bitcoin ETF had not been passed, the situation might have been worse. Where there is innovation, the wealth effect is still obvious, such as the Bitcoin ecosystem.
3. Bitcoin and Ethereum ETF: Bitcoin ETF has created a new ecology and is a brand new starting point. In contrast, Ethereum ETF is more about launching coins for projects that raised a lot of funds in the previous round, and at the same time sorting out the shipment of old wallets. The passage of Ethereum ETF can bring some new funds, but we need to be cautious and optimistic.
4. The impact of the interest rate cut cycle: Even if Q4 begins to enter the interest rate cut cycle, the scale of new water release is much lower than the previous round. However, the speed of new projects issuing coins and listing market value far exceeds the previous round. Don't expect altcoins to rise across the board, and the overall expectations need to be lowered. These large-cap projects have no benefits for ordinary investors except for sucking blood in the secondary market.
5. Look for opportunities in niche tracks: Although the overall market expectations have been lowered, there are still opportunities in niche tracks with active innovation. The Bitcoin ecosystem is still the field with the strongest wealth effect, because the opponents are mainly ordinary investors, who are easier to play than institutional plates. We should focus on small and medium-cap projects that are actively built, have strong fundamentals, reasonable token models, and active communities.
6. Benefits of the callback: The previous bull market was too fast, and many altcoins were not ready. If the bull market continues to grow rapidly, it may end early. The current callback brings several benefits: the bull market can last longer, altcoins have enough time to prepare, and good projects can regain the opportunity to get on board. The more ruthless the wash, the more violent the rebound will be.
