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The entire Bitcoin market has fallen sharply, and the three major U.S. stock indices, along with Nasdaq tech stocks, have also not been spared. The main reason for this widespread market decline is Israel's sudden airstrike on Iran, deploying hundreds of drones to attack Iranian nuclear facilities and scientists, resulting in dozens of deaths. Iran quickly issued a retaliation statement, and this sudden event triggered panic in financial markets. Iran also responded swiftly, stating it would retaliate, causing immediate turmoil. However, there is no need to panic too much; today's drop is a typical reaction to an unexpected negative event and is not related to the bull market trend itself. As long as a full-scale Third World War does not break out, local conflicts will only have a short-term impact on the financial market.
The intensity of liquidation funds for Bitcoin is too high; both bulls and bears are afraid to touch it. In the short term, it is estimated that there will be a rebound breaking 105,000 to liquidate some short positions, and then it may drop below 103,000 to liquidate some more short positions. The short-term upward expectations have been disrupted by the war, but this doesn't affect the overall trend; prices will come back. Looking at the long term, the war has no impact on coin prices. I believe this pullback is just giving you a second chance to get in.
I took a look at the market for altcoins!
In fact, the market has quietly shifted from speculation and hype to a more pragmatic route – value coins are slowly gaining the upper hand. In contrast, some newly launched PPT projects are getting worse, with hype coming and going, prices rising and falling, making it impossible to stabilize.
On the other hand, some projects with real income and clear use cases, such as Aave, Pendle, MKR, Hype, Syrup, Cake, etc., although they have not experienced dramatic ups and downs, have shown steady overall trends in recent months, some even slowly rising. They are like 'blue-chip stocks' in the crypto world, relying on solid value support instead of speculation.
I increasingly believe that these honest projects that are seriously working, have income, and have application scenarios will go further than those Layer 1 (L1) platform coins that are just being speculated. After all, L1 has been hot for several years, and valuations have been pushed too high; the bubble will eventually have to be squeezed. The upcoming market will likely reflect the sentiment of 'what are we still fantasizing about? It's time to return to reality.'
Next, where is the hot money for altcoins headed? Focus on a few key directions!
DEFI, stablecoins, RWA, ETFs, memes, public chains, plus AI and depin, so the next play for altcoins is just to find the leaders in each track to buy. Many friends are asking about which altcoins can be positioned during this drop affected by the war. In fact, this cycle, the Crab Boss told everyone early on that there aren’t many playable options in the secondary market right now. The two previously emphasized, Pepe and Sui, can be operated according to the points mentioned in previous articles; both long and short-term waves can be played. Once Pepe drops below 1, I will definitely notify in the banned chat group.
Finally, let's set aside the altcoin indicators from the article on May 31. From a broader cycle perspective, there are no expectations for interest rate cuts in the crypto space, and continuity has always been low. Therefore, if you can manage or understand the waves at this stage, such as strong altcoins gaining 30% and weaker ones following the market gaining 10%, those who understand can go for it. But if you are worried about the market suddenly dropping again, it's best not to operate for now. Just wait for the market to signal expectations of interest rate cuts to buy the dip, which will likely allow you to catch the main uptrend influenced by the rate cuts. How to operate now depends on your own choice, as trading is related to your personality; if you're impatient and can't stand still, just play the waves, but be strict in selecting strong indicators. Don’t be greedy; when it's time to exit, exit, otherwise profits will be given back, or worse, you’ll get stuck. Just wait patiently for the signal to buy the dip in a larger cycle.