The main reasons are:

1. The number of new coins listed on exchanges has increased recently, and the review mechanism is not strict enough. This has led to a large number of altcoins of varying quality on the market, such as ZK and ZRO. These new coins often have too high market capitalizations, are subject to false advertising, and have a huge number of token unlocks, which has brought great uncertainty to the market.

2. Market liquidity problem Due to the excessive number of altcoins, market liquidity has been severely squeezed. The altcoins in the primary and secondary markets compete with each other, resulting in the dispersion of funds and difficulty in forming effective market support. At the same time, institutional investors such as ETFs are more inclined to flow funds into mainstream cryptocurrencies such as BTC and ETH, further exacerbating the liquidity problem of altcoins.

3. Project owners behave improperly. Many project owners quickly sell off new coins after launching them, lacking the willingness to operate and maintain them in the long term. This behavior not only harms the interests of investors, but also undermines the healthy development of the market. In addition, some project owners directly launch new coins to continue harvesting after the old coins lose market attention, exacerbating the chaos in the market.

4. Market hype weakens As investors' understanding of altcoins deepens, market hype gradually weakens. Investors pay more attention to the actual value and long-term potential of projects rather than short-term price fluctuations. Therefore, once there is a slight disturbance in the market, the price of altcoins tends to fall sharply. At the same time, the mutual non-acquisition between value coins and fans has also exacerbated the downward trend of the market.

5. Macroeconomic and policy factors In addition to the above factors, macroeconomic and policy factors also have an important impact on the altcoin market. For example, the instability of the global economic situation and the tightening of cryptocurrency regulatory policies may have an impact on the altcoin market. In addition, the attitudes and actions of institutional investors also have an important impact on market trends.

6. Lack of innovation and practical application Many altcoins lack innovation and practical application scenarios and are launched only for short-term benefits. Such projects that lack practical value are unlikely to gain market recognition and support in the long run.

This pullback and consolidation may be the last chance for retail investors to get on board!

Why do I say so? You can look at the price of Bitcoin. The highest price of Bitcoin started with 7. Now, because of the repeated market manipulation by the dealer, the price of Bitcoin is only around 62,000. According to the current situation, Bitcoin is expected to fall to 60,000, or even around 58,000.

1. If you are currently fully invested, you can reduce your position appropriately, and then buy the bottom again after the market has adjusted back to the right level.

2. For those who have reserved positions, add positions in batches every 5% drop. After the wash, Bitcoin still has the ability to double, and other altcoins will also start to surge again!

As for those who are still doubting whether the bull market is still there, I can only say that every time Bitcoin is halved, it will be washed for two or three months. This is a historical fact. In addition, the ETH spot ETF was released on July 2. There are two major benefits in front of us. If the dealer does not wash the market, will retail investors pick up money everywhere? What the dealer is doing now is to wash the market repeatedly, wash out all those who are not firm, and when the dealer thinks that the washing is almost done, it will give the market a signal, and then quickly pull up the market, leaving those who did not get on the car and were washed out far behind.

The only hope for the market is that institutions work together to pull up the market, the Ethereum ETF passes trading, liquidity increases, the war ends, interest rates are cut, and a presidential election begins!

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