At 10 pm last night, the US announced that the one-year inflation rate in May was 3.5%, which was higher than market expectations. Immediately afterwards, the Fed's Bostic said that the Fed is expected to cut interest rates only once later this year. Due to the release of inflation data, market expectations for rate hikes were postponed, and the original expectation of two rate cuts was reduced to one.

The news caused the price of Bitcoin to fall by 3,000 points. It tried to rebound to the 63,800 level we were concerned about during the day, but failed. The overall bearish sentiment in the market dominated. From the daily trend, yesterday's big negative line closed. The market is currently in a state of intraday volatility, and the technical side needs to be repaired. The possible rebound positions of 61,800 and 62,200 should be focused on during the day. According to previous analysis, the key focus area in the short term is 53,000-54,000.

The decline of Bitcoin has also led to a general decline in altcoins. Currently, the technical outlook of most altcoins is obviously bearish. In the short term, investors should do a good job of risk control and wait for Bitcoin to rebound after the third wave of decline. At that time, altcoins are also expected to rebound. Each round of rebound is a good opportunity to increase the number of coins in hand.

In the current market environment, which currencies and sectors are easier to pull up? First of all, the outbreak of each round of bull market is accompanied by the leadership of the main narrative sector. In the last round of bull market, the outbreak of major public chains and Defi led the market heat.

AI sector: At present, the rise of AI technology has undoubtedly become one of the dominant narratives in the market. The strength of the AI ​​sector is due to the enthusiastic attention paid to AI technology worldwide. The currencies in this sector have the potential for continued growth, with active capital inflows and good rebound performance after declines. Therefore, the AI ​​sector deserves our subsequent focus. Google's upcoming developer conference on May 14 will focus on AI technology, which is another good news for the AI ​​sector this month. In addition, Nvidia's financial report will be released on May 22, and the market expects its revenue to increase by 400% year-on-year. The surge in Nvidia's stock price has also driven the rise of AI-related projects.

MEME sector: The MEME sector is favored by the market for its fair issuance and full circulation. The fully circulated MEME coins require the dealer to invest real money to accumulate in order to control the market, which also makes the coins in this sector more dynamic in the subsequent pull-up. Retail investors are also more willing to follow the purchase, providing good liquidity for the market. Therefore, the MEME sector is also a major narrative in the current market.

Sol Ecosystem: Sol's trading and issuance mechanism is smooth and low-cost. Although the price of Sol was underestimated due to the FTX incident in the last round, it was later supported by Wall Street investment institutions in the United States. Sol Ecosystem successfully ranked among the top cryptocurrency ecosystems by issuing MEME coins. However, its overall valuation is still low, which means there is more room for development in the future. Therefore, Sol Ecosystem is also worthy of our attention.

In addition to the three main narrative sectors mentioned above, there are some special sectors with potential money-making effects. These sectors include fan sports tokens, altcoins with a market value of less than 100-200 million and outside the top 200, and the currencies in the bankruptcy sector. Among them, altcoins with lower market value may show strength in certain specific periods. When these low-market-cap and low-circulation currencies appear on the Binance gainer list, we can classify them and observe the strength of the sector to which they belong. Once a sector performs strongly in the short term, we can further look for high-quality currencies in the sector for operation. It should be noted that these currencies are in a state of shock in most cases, and investors should be prepared for short-term operations, seize money-making opportunities and withdraw in time.

Finally, I have listed some currencies and sectors that may have potential: vib, ooki, cvp, spell, ast, gft, pols, pros, fida, ark, akro, pond, vtho, for, loom, amb, perl, arpa, sptp, stmx, etc.

It should be noted that this type of coin generally oscillates without fluctuations for most of the time 90% of the time, and only starts to explode at a specific time point. Therefore, when investing in coins in these sectors, do not have faith in the short-term approach and run away after making a profit.