In recent days, the crypto market has been quite volatile, especially as Bitcoin's price has experienced drastic fluctuations in a short period. The changes in market sentiment are mainly influenced by several key events, the most notable of which are Microsoft's shareholder vote and Bloomberg's negative comments.
First, Microsoft recently held a much-anticipated shareholder vote to discuss whether to allocate 1% of its assets to Bitcoin. The outcome of this vote was surprisingly disappointing, as Microsoft did not pass the proposal. While many industry insiders had expected Bill Gates' consistent opposition to cryptocurrencies, the suspense surrounding this shareholder vote still caused significant psychological fluctuations in the market. Microsoft's top two shareholders, Vanguard Group and BlackRock, both hold significant positions in the crypto market, especially Vanguard, which is the largest shareholder of MicroStrategy, a company that has been advocating for Bitcoin as a strategic reserve. The market generally believed that these two institutions would push Microsoft to adopt Bitcoin, but the voting result was a letdown, directly depressing market sentiment. Bitcoin's price briefly fell to $94,400 in the early morning, and although it later rebounded, the support level at $95,000 remained strong, indicating that the upward trend has not fundamentally changed.
Another important market news is that Bloomberg published a public editorial expressing a strong negative view on Bitcoin. Bloomberg believes that if the U.S. government includes Bitcoin in its strategic reserves, it would lead to 'the largest crypto scam in history,' as Bitcoin lacks industrial use and cash flow, existing merely as a speculative tool. This statement immediately triggered market unease, sparking widespread discussion, especially among Bitcoin holders and supporters. Additionally, Bitcoin's staunch critic Peter Schiff took this opportunity to express his opinion, arguing that the Biden administration should sell existing Bitcoin holdings, which would not only reduce the budget deficit but also eliminate the absurd idea of establishing a Bitcoin reserve. Although Peter Schiff's comments often provoke strong reactions from the crypto community, it cannot be ignored that his critical voice also influences market sentiment.
In stark contrast, potential candidate Donald Trump for the U.S. presidential election has also shared positive news related to Bitcoin. Sources reveal that Trump is very attentive to Bitcoin prices and hopes that Bitcoin can break through the $150,000 level early in his term. Interestingly, Trump’s second son expressed at a Bitcoin conference in the Middle East that Trump believes in the future of Bitcoin and predicts that its price could soar to $1 million. These statements undoubtedly create more room for imagination in the market; if Trump truly supports Bitcoin and wishes to incorporate it into the U.S. economic system, the future of cryptocurrencies will be even brighter.
In addition to the macroeconomic and policy impacts, the recent flow of funds in the crypto market has also changed. Recently, altcoins on CEX experienced a series of retracements, leading to funds flowing back into on-chain projects. AI-related crypto projects, especially AI meme coins like $ai16z, have performed remarkably well recently, with a market capitalization exceeding $800 million, becoming a hot topic in the market. Driven by emerging AI projects like $arc, the on-chain market has shown a strong upward momentum. Recently launched AI meme coins, such as $ai16z and $arc, have seen daily trading volumes surpassing hundreds of millions, and their market capitalizations have significantly increased, indicating that crypto projects in the AI field are attracting more and more investor attention.
On the other hand, several new projects recently launched by Binance have shown mixed results. Particularly for $move, although it attracted significant capital inflow at launch, its price has now dropped from a peak of $3 to $0.65, reflecting the high risks of the secondary market. Meanwhile, another star project, $me, has shown relatively stable growth, with a market capitalization reaching $5 billion, indicating that it remains in a high valuation range. Additionally, the emerging meme coin $koma on the Binance chain has performed exceptionally well; this token, which is derived from $shib, has seen its value increase more than 20 times over the past five days, demonstrating strong market appeal.
Overall, the current flow of funds and investment hotspots in the market have changed, with more and more investors beginning to shift their attention to small-cap projects with high growth potential. In the current market environment, if investors can select projects with market capitalizations between $20 million and $50 million and seize their breakout points, returns of 10 to 20 times are not impossible. However, for larger market cap projects, investors should be more cautious, viewing them as stable investment choices rather than opportunities for short-term surges.
Overall, although the market has recently experienced some negative factors, the overall market sentiment remains relatively positive. The upward trend of Bitcoin has not changed, especially with the support of large funds; the crypto market is still full of opportunities. In the coming months, as policies become clearer and more institutional investors join, the market may welcome a new round of upward cycles.
Today's article ends here, feel free to come to the homepage and play together~
Investing involves risks, and the above content is personal sharing and does not constitute investment advice!