Author: Finish

Compiled by: TechFlow

 

Some experts say copycat season is still a ways off. Others say it’s about to begin.

But what is the truth? I spent 30 hours analyzing all the data, and what I found will surprise you.

First, let's talk about the mood of the average person. Most are bearish, with 60% being vilified, and some even thinking that crypto is about to lose all retail interest. But what if we look at the $BTC chart?

Since February, $BTC started to grow continuously and people thought a super bull run was coming. Now $BTC is falling and everyone is saying crypto is bullshit.

But the chart shows that we are in a 15-week consolidation zone and pullbacks are common. So people are not losing interest in cryptocurrencies, but what about altcoins?

Altcoins are doing badly, leaving holders with 80% losses. But why? $BTC is breaking new all-time highs, why are altcoins doing so badly?

Let me walk you through the expert opinions.

Crypto OG Miles Deutscher shared an interesting insight: 1 million new crypto tokens were created in May (excluding Solana), double the total number of tokens created between 2015 and 2023

But why can’t the market push all of these tokens higher?

(See tweet for details)

The market has gotten smarter since the last bull run.

Why should people buy a copy-paste layer 2 solution (L2) like $ZK, $STRK, and $ZRO that cost $5 million to develop instead of $260 million?

So, what will happen to altcoins in this super cycle?

Here we can remember the main rules of cryptocurrency:

  • New cycle, new altcoin

  • There is no need to buy boring L2 solutions, the key is to anticipate the next narrative and invest carefully in potential leaders

Now, let me walk you through my thoughts on the future of narrative

RWA (Real World Assets) and DePin (Decentralized Infrastructure Network):

These sectors have received the most funding this year and last and are obvious investment choices.

GameFI (Game Finance):

There are some really good games, but they don't have enough players. I expect this space to explode in a year.

gamble:

Cryptocurrencies are a great fit for this space, but aside from memecoins, there’s nothing that appeals to WEB2 folks.

Artificial Intelligence (AI):

It may seem late, but who knows what OpenAI will create in a year, so following this narrative is crucial.

Now, let’s understand when the next rally will occur.

One such indicator is the Global Liquidity Index.

If we compare the chart below with the cryptocurrency chart, we can see a similar trend.

According to the chart, a massive correction is imminent within 6-18 months.

There is another way to indicate altcoin seasons: simply track the Federal Reserve’s total balance sheet.

When the Fed starts buying assets, it means a huge inflow of liquidity, which also affects cryptocurrencies.

Right now, the Fed is simply selling assets, but a reversal is coming.

Once you have reviewed the first two charts, we can utilize the Rainbow Bitcoin chart to get a clearer picture.

As you can see, we are in the “big sell zone” which means it is worth looking for an entry point now.

But don't put all your money in it, put only 10-15% of the entire portfolio and if we fall further, buy more.

If you still have doubts about cryptocurrencies, here’s the ultimate proof: the U.S. government is ready to support the growth of cryptocurrencies.

Are you still bearish after the US President endorsed cryptocurrencies?

(See tweet for details)

Summarize

  • Retail investors will not lose interest in cryptocurrencies.

  • The market is tired of copy-pasting projects and waiting for new altcoins to emerge.

  • Investors are losing interest in duplicate second-layer solutions and are looking forward to the emergence of new, promising altcoins.

  • GameFi, Gambling, RWA, DePin, and AI are worth watching.

  • Global liquidity and Federal Reserve reserves are key to crypto growth.