Yesterday's CPI data of 3.4 was released. As expected, this data ignited the enthusiasm of the market. Bitcoin jumped directly from $62,500 to $66,500, an increase of more than 4,000 points! Ethereum was not to be outdone, rebounding strongly from around $2,860 to around $3,040. The overall market trend was strong, and the daily line closed with a long positive, indicating that there may be more room for growth in the future.
In addition to the positive CPI data, the news that the US pension fund disclosed that it held bitcoin ETFs also added momentum to this round of market rebound. After a long period of adjustment, the market seems to have accumulated enough energy and is waiting for the rebound to come.
The strong rise of Bitcoin once again highlights the weak position of Ethereum, and the current exchange rate is in the oversold range. However, from a long-term perspective, the rising trend line since the beginning of 2020 provides strong support. Therefore, even if the exchange rate fluctuates in the short term, the room for decline is limited.
Now, buying at low prices has become a key strategy. The AI sector, the Ethereum L2 sector, and the SOL sector are all worthy of attention. With the release of CPI data, the expectation of interest rate cuts has been mentioned again. Coupled with the impact of the US election at the end of the year, the possibility of interest rate cuts has increased, and early layout will be more profitable.
It is worth noting that more and more institutions or companies have disclosed their holdings of Bitcoin ETFs. This trend indicates that global financial giants will gradually join the digital currency market. This will inject more vitality into the market and lay the foundation for a big bull market. However, while enjoying the market rise, we also need to be wary of risks.
Adjust your holding strategy to grasp the future of altcoins
At present, we need to carefully consider the logic of clearing certain currencies. If your holdings have the following characteristics, you may need to consider adjustments:
For VC coins, if the cost of their chips is much lower than the current market price and there are problems with the way they are obtained, then they should be held with caution.
The volume to be unlocked in the future will be too large, and the unlocking method will be complicated, such as multi-dimensional linear unlocking rather than step-by-step unlocking. Such currencies will have higher risks.
There are too many new VC coins in the current market. It may not be wise to buy a basket of altcoins. You should choose coins with potential for investment.
For VC new coins, my purchase principle is to choose new coins that have not been unlocked in the next year or so, or new coins that have just been unlocked and are unlocked in a step-by-step manner, with each step unlocked at a time interval of about half a year. This can reduce risks and seize opportunities.
Finally, examine the altcoins you hold to see if they have a clear narrative and prospects. If not, or if there is a large amount of unlocking in the future, then you may want to consider selling; if there is a narrative and prospects, and there is an unlocking plan, then you can consider holding for a while and wait for the narrative to land before making a decision.
Analysis of several cases of liquidating altcoins
IMX: Its popularity is obviously insufficient in this cycle, and its main large-scale games are not highly compatible with the cryptocurrency ecosystem. From a speculative perspective, there are more attractive options on the market.
ENA: As a high-quality VC coin, its project has the potential for positive returns, especially in the context of a bull market, the returns may be even more substantial. However, based on my personal strategy, I think there are other options with greater potential, and I may refocus on it in the future.
In-depth analysis of the logic of buying altcoins
Full circulation is preferred: Choose fully circulated altcoins such as meme coins and inscription coins, whose market chip costs are more transparent and help reduce investment risks.
Liquidity is king: Only altcoins listed on mainstream exchanges such as Binance are considered to ensure the liquidity and security of funds.
Leading currencies: Keep up with the hottest tracks in the market, such as the Solana series, and choose the leading currencies, which can often bring greater returns.
Market capitalization range: Prefer coins with a market capitalization between 100-200, which tend to have greater growth potential.
Project profitability: Ensure that the project you invest in has the potential for positive returns, which is an important consideration for long-term holding of altcoins.
Comparison of daily trading volume and market value: For example, a currency that ranks 100th in market value and 50th in trading volume may have higher market activity and investment value.
Everyone needs his own investment logic: only by having an investment logic that you firmly believe in can you remain calm in market fluctuations and obtain excess returns.
Market analysis
ETFs have returned to the market, and the scale of inflows increased significantly yesterday, releasing a positive bullish signal. The overall market sentiment is positive and it is expected that the market outlook will continue to rise. After adjustments, Bitcoin rebounded strongly under the favorable macro data, and the vicinity of 60,500 has become a solid support level. The rebound of altcoins last night was equally strong, and the market opportunities in May are particularly valuable for investors who are not yet on board.
However, ETH's trend is still weak, and the delay in ETF approval may have a certain impact on its market. But the market is always full of variables, and new hot spots may emerge at any time, driving ETH's market rebound. Investors should pay close attention to market dynamics and seize opportunities.
From the perspective of the market value performance of altcoins, although the overall market value has grown rapidly, the problem of dispersed funds and divergent trends still exists. In particular, the MEME sector has attracted a large amount of funds, which has had a certain impact on the trends of other altcoins. However, the overall market value of altcoins has shown a trend of triangular consolidation. Once it breaks through the upper edge of the triangle, it may usher in an overall upward trend.
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