It took five years for the gold ETF to break through the $50 billion asset management scale, while the Bitcoin ETF took only 57 days. Gold has been rising for 20 consecutive years since the ETF was approved in 2004. The Bitcoin ETF was just approved this year. Coupled with the three major positive factors of the Fed's interest rate cut in the second half of the year, the upcoming launch of the Ethereum ETF, and the US presidential election, the price of BTC is expected to reach an unprecedented height in this round of bull market, even exceeding everyone's expectations.
Behind the approval of the Ethereum ETF is the balance between the U.S. Securities and Exchange Commission (SEC) and Wall Street. The achievement of this balance is largely attributed to the shift in U.S. policy, especially the passage of the FIT21 Act. Although the bill is mainly promoted by the Democratic Party, it reflects the overall shift in U.S. national policy.
At the same time, the continued leadership of companies such as OpenAI, Google and Nvidia in the field of AI has kept the U.S. economy resilient. Although this has made the Federal Reserve not eager to cut interest rates, it has also prompted U.S. policymakers to become more open, inclusive and encouraging innovation in high-tech (especially the blockchain industry closely related to AI). This change in attitude will undoubtedly accelerate the development of the blockchain industry, and the prosperity of the crypto industry may be coming soon.
Every project that goes from zero to billions of dollars in market value needs whales (large investors) at some point to drive the price up. For Meme coins, it is common that the early community forms a core of support, and then as the Meme coin succeeds in terms of attention and virality, its market value quickly exceeds $100 million.
Once the market value "stands firm" or exceeds $100 million, it will attract larger whales to enter the market because there is enough liquidity to establish large positions at this time. In addition, players who own these Meme coins early must have the characteristics of "diamond hands", that is, holding a large number of tokens at a low cost in the early stage and not selling them easily. These enthusiastic holders are crucial to the continued success of the project. Their firm holding not only supports the market price, but also builds confidence for new investors.
Therefore, the formation of the early community and the existence of tenacious holders are key factors in Meme coins being able to attract large investors, drive up market value, and achieve long-term success.
In the current market environment, the rise of Meme tokens is not just short-term speculation, but also reflects the public's demand for fairness and decentralized finance. Although Memecoins like PEPE have attracted a lot of attention with their humor and cultural phenomena, the trends behind them are more worthy of attention:
1. Decentralization and community power: Memecoins usually rely on the support of decentralized communities rather than traditional financial institutions. This decentralized nature gives ordinary investors more participation and voice, which is in line with the general public's expectations of fairness.
2. The integration of culture and finance: Memecoin attracts a younger generation of investors through the combination of Internet culture (such as Meme) and financial instruments. These investors are more inclined to support financial products that fit their cultural background.
3. Representation of capital flow: As more and more funds flow into the Memecoin market, this not only indicates speculative enthusiasm, but also reflects the market's distrust of the traditional financial system and recognition of innovative financial products.
4. The prosperity of technology platforms: Blockchain platforms such as Solana and Base have become important venues for active trading of Memecoin due to their efficient and low-cost trading characteristics. The success of these platforms further proves the market's demand for high-performance blockchain technology.
In short, the rise of Memecoin is not only a financial phenomenon, but also a manifestation of social, cultural and technological change. In this process, the general public expressed their support for a fair and decentralized financial system through investment behavior, which is also an important trend that cannot be ignored in the future financial market.
Continued from the previous article The logic of Ethereum's rise leading to the explosion of altcoins
1. The foundation of the Ethereum ecosystem: - Ethereum is not only a cryptocurrency, but also a decentralized application platform (DApp) and smart contract platform. Many new blockchain projects and tokens are built on the Ethereum blockchain, using its smart contract function to implement decentralized applications.
2. Price increases drive confidence and capital inflows: - When the price of Ethereum rises, it usually attracts more investors and funds into the entire cryptocurrency market. Investors' increased confidence in Ethereum will drive capital inflows into other projects and tokens in the Ethereum ecosystem.
3. Ecosystem prosperity: - The rise in Ethereum prices is often accompanied by increased use of the Ethereum network, such as more transactions, more decentralized applications (DApps) and increased activity. The increase in these activities will further enhance the market's confidence in the Ethereum ecosystem and attract more developers and projects to join.
4. Benefits of altcoins: - Since many altcoins are built on Ethereum, when the price of Ethereum rises and its network activity increases, these Ethereum-based altcoins will also be positively affected. Investors will see the potential of these altcoins, and funds will begin to flow from Ethereum to these altcoins, driving up their prices.
5. Capital spillover effect: - In a bull market, as the market is full of funds, investors will look for new investment opportunities after making profits. These funds will flow from Bitcoin to Ethereum, and then further to other Ethereum-based altcoins, leading to the prosperity of the entire market.
6. Verification of historical laws: - This trend has been verified many times in the past few rounds of bull markets. Bitcoin is usually the leader of the market. When the price of Bitcoin rises, it first drives Ethereum, and then the rise of Ethereum will drive other projects and tokens within its ecosystem, and finally drive the rise of the entire cryptocurrency market.
The rule of the last two rounds of market conditions is that Bitcoin rises first, then Ethereum rises, and the rise of Ethereum brings about the explosion of altcoins. In the last bull market, most altcoins also rose tenfold. When there is sufficient capital in the market, it will overflow and flow from mainstream coins to altcoins.
The logic of the rise of Ethereum bringing about the explosion of altcoins is that most projects were built on Ethereum before, and the surge in Ethereum prices will indeed bring prosperity to the entire chain ecosystem.
Although Bitcoin mining has driven the development of the GPU market, the research and development of AI hardware (such as A100) is mainly driven by AI demand. The success of AI applications such as ChatGPT relies on high-performance computing hardware, but the development of AI does not entirely rely on the hardware progress brought about by Bitcoin mining.
The improvement of productivity and the change of production relations are complex processes involving the combined effects of multiple factors. The future of Web3 depends not only on the development of AI technology, but also on factors such as blockchain technology, regulatory policies, and market demand.
In short, although there is a certain connection between Bitcoin, mining, AI hardware, AI applications, and Web3, each link has its own independent development momentum and logic, and cannot be simply regarded as a single causal chain. The future of Web3 still depends on the joint promotion of multiple technical and social factors.
If you cannot predict the market trend but still want to invest, you can adopt the following strategies:
1. Build a position on dips: gradually buy when the market falls to spread the cost.
- Buy more when the market falls sharply, buy less when the market falls slightly: adjust the purchase quantity according to the size of the decline. Buy more when the market falls sharply, and buy less when the market falls slightly.
2. Build a base position: first establish a basic position to ensure that you have a position when the market recovers.
- Sell when the momentum is good: when the market trend is good, choose the right time to sell to make a profit.
3. Three elements of investment:
- Know how to buy: find the right time and strategy to buy, and ensure that the purchase is appropriate.
- Know how to hold: be patient during the holding period and not be affected by short-term fluctuations.
- Know how to sell: grasp the right time to sell and ensure maximum profit.
Summary: adopt a step-by-step position building strategy, adjust the purchase amount according to the market decline, first establish a base position, and then sell when the market is good. Buying, holding and selling all require strategy and patience, and all three are indispensable.
The US House of Representatives passed the FIT21 Act
The FIT21 Act provides a clearer regulatory framework for cryptocurrencies and fintech. This clarity may make it easier for regulators (such as the SEC) to approve Ethereum ETFs.
The conclusion is simple: The global economy will be built on the chain The United States will be at the forefront of creation Everyone can access it anywhere
Trump accepts cryptocurrency donations This move has several important trends and possible impacts
1. Increased acceptance of technological and financial innovations: Accepting cryptocurrency donations shows that the Trump team is open to emerging technologies and financial innovations. This shows that the use of cryptocurrency in political fundraising is gradually becoming mainstream.
2. Expanding donation channels: Cryptocurrency donations provide political candidates with a new fundraising channel that may attract more young and technologically advanced voter groups.
3. Regulatory and compliance challenges: The anonymity and decentralized nature of cryptocurrencies may raise regulatory and compliance issues. For example, how to ensure the legality and transparency of these donations and prevent illegal capital inflows.
4. Security and stability: The volatility of the cryptocurrency market may bring certain risks, and appropriate measures need to be taken to ensure the security and stability of funds.
5. Political impact: This move may trigger different reactions among supporters and opponents. Supporters may see this as a manifestation of keeping up with the times, while opponents may worry about the risks and uncertainties associated with cryptocurrencies.
Overall, Trump's acceptance of cryptocurrency donations reflects the diversification and modernization of political fundraising methods, while also bringing new opportunities and challenges.
Trump issues NFT, supports cryptocurrency fundraising, and criticizes Biden for his lack of knowledge of cryptocurrency... If Trump wins in the end and overlapping interest rate cuts begin, then the cryptocurrency world may usher in a long-awaited violent bull market, as if everything is converging at the same time. #btc#Trump
The cryptocurrency holding strategy of office workers should be simplified in order to manage risks and ensure a stable quality of life. The following is a simplified holding strategy:
1. Small proportion investment: - Cryptocurrency holdings account for 5% to 10% of total assets. This proportion is controllable and reassuring.
2. Choose mainstream currencies: - Mainly invest in Bitcoin and Ethereum because they are relatively safe and have a smaller drop. - Although Altcoins may have a larger increase, they are also more risky.
3. Dealing with market fluctuations: - When the price of Ethereum falls, increase your position appropriately because it has long-term value. - Avoid high risks and do not bet all on altcoins to avoid major impacts on your life and future plans.
4. Diversified investment: - Diversify your investment to avoid investing all your funds in one asset to prevent large-scale sell-offs caused by black swan events and extreme pessimism in the market.
5. Research before investment: - Do your homework before investing, understand the potential and risks of the project, and avoid blindly following the trend.
6. Know when to stop: - Be rational about memecoin investment and know when to quit.
In short, office workers should formulate a suitable asset allocation ratio according to their own situation to ensure that the investment is stable and does not affect the quality of life. #BTC#ETH #memecoin🚀🚀🚀
Expectations of U.S. interest rate cuts, rumors of Ethereum spot ETFs, and policy changes have jointly promoted significant gains in the Bitcoin and cryptocurrency markets.
1. U.S. interest rate cut expectations: As inflationary pressure weakens, market expectations for the Federal Reserve to cut interest rates have increased, which may cause a large amount of U.S. dollars to flow into the market and push up the price of high-quality assets such as Bitcoin. Bitcoin price is back above $70,000.
2. Rumors about Ethereum spot ETF: The U.S. Securities and Exchange Commission (SEC) may be about to approve a spot Ethereum ETF. The SEC requires exchanges to speed up the update of 19b-4 application documents, which is interpreted as a signal of approval. Analysts raised the chance of spot Ethereum ETF approval from 25% to 75%.
In addition, the potential repeal of SAB 121 may also promote more institutional investors to enter the cryptocurrency market. SAB 121 requires digital asset custodians to treat these assets as liabilities, limiting the ability of financial firms to custody cryptocurrencies. If this regulation is repealed, it could further boost the crypto market.
The SEC asked exchanges to expedite updates to 19b-4 applications, three people familiar with the matter told CoinDesk, suggesting they may approve them before a key deadline this Thursday. But that doesn't mean the ETF will be approved. Potential issuers also need their S-1 applications approved before the product can begin trading. Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart raised the odds of spot ether ETF approval from 25% to 75% after hearing rumors that the SEC might take a more favorable stance on the application, with the probability tied to 19b-4 approval. The SEC is expected to make a decision on the VanEck spot ether ETF on May 23. ETH has now risen to $3,600, up more than 18% in 24 hours.
These are all memes (i.e. meme coins), which are a huge and unignorable existence among the currencies, and the wealth stories are astonishing;
Meme coins are simply understood as having no applications, "ownerless currency", with large circulation and low unit price (basically several zeros after the decimal point). Its birth is basically a symbol of culture, such as dog is a mockery of the absurdity of cryptocurrency, and pepe is an emoticon widely circulated around the world. This kind of coin has no core application and is purely a product of hype and speculation.
pepe.com web3.o projects are also keen on domain names.