The price of Bitcoin has stabilized relatively well. Last night's Federal Reserve meeting and the Iran-Israel conflict had little impact on it. Price fluctuations are much smaller than in previous days, and institutions are continuing to buy Bitcoin. Last night alone, nearly $400 million flowed into ETFs, and many listed companies are also buying. Therefore, the price of Bitcoin actually has support and is not likely to drop significantly.
In contrast, Ethereum seems a bit weaker. Although it also saw money flowing into its ETF last night, the ETH/BTC exchange rate has always been very low, and the market's attention is not on Ethereum right now.
The current hotspot is in the stablecoin sector, as the U.S. has passed the stablecoin bill. Funds looking to enter the market see stablecoins as a good opportunity. For instance, Circle has seen a tremendous rise, and various dollar-pegged stablecoins are also rising, indicating that the hotspot is here in stablecoins. I've heard many institutions are looking to buy one-click issuance services from Paxos, another stablecoin company.
So how can ordinary retail investors participate in the hotspot of stablecoins? There are mainly two paths:
Directly buying Bitcoin (BTC): Because if the amount of stablecoins flowing on the chain becomes super huge, Bitcoin, which has a fixed total supply and will not have a deflationary connection, could become as valuable as gold.
Buy leading projects in the infrastructure and Real World Asset (RWA) tokenization sectors. These are the most directly needed items for stablecoins to be effectively utilized and run. With an increase in stablecoins, projects that use them for platform and tokenization of real-world assets like bonds and real estate will benefit.
Regarding yesterday's meeting, maintaining the interest rate unchanged in June is basically in line with market expectations. However, the dot plot shows only one rate cut this year and another next year, totaling 50 basis points. The probability of a rate cut in September has already reached over 70%. However, since Trump took office, no news can be confirmed in advance. It is very likely that there will be changes later.
Regarding altcoins, many mainstream altcoins have already fallen into a bear market stage, and it can be said that they are neglected and very quiet. Funds are not attracted, and project teams lack good innovations, forming a dead cycle.
Although Bitcoin has always been the consensus, those institutions have launched ETFs, and some altcoins are also planning to launch ETFs. From the current situation, it's just a matter of time. However, the problem is that time is unknown, and can many altcoins survive to that stage? Will they be drained of most traffic and funds by new hotspots?
Regardless of how the secondary market develops, the premise is that the entire crypto market's secondary market needs to have a "lively atmosphere" and "profit-making effect", otherwise a big new hotspot will directly take its place.
Let me mention a few altcoins that can be held long-term.
The first is still Pepe, as the Pepe community and consensus are still strong. Now, as long as there is a project on the Solana chain that has Pepe, it will basically launch and reach a market cap of hundreds of thousands without much issue. Although a market cap of hundreds of thousands is hardly worth mentioning, for small investors, easily getting a tenfold return is not a problem, which is the consensus power that Pepe brings.
Returning to Pepe, as the current leading coin in the meme sector on exchanges, it's completely feasible to enter below 1, and both short-term and long-term positions are fine. For long-term, it needs to be bought in batches; don't put all your money in one position. After buying below 1, you can take a few dozen points profit. Since the expectation of a rate cut is in September, there are still 3 months left in June, and the market will certainly continue to consolidate.
The second is Sui. I remember mentioning in the last article that Sui is currently one of the stronger public chains. At that time, when Cetus was hacked, Sui came in to rescue funds. Sui's price also fell as a result. I previously mentioned that entering below 3 would be good, and it has since risen by about 20%. The previous strategy was clear; if you can play the swings, take the 30% profit.
This time, Sui also fell due to war factors along with the market, and it hasn't recovered yet, which can also be considered an entry opportunity.
Previously, I mentioned Aave, and here I want to introduce a new token. Uni has a strong fundamental basis in the DeFi sector. The U.S. recently supported the compliance of DeFi, so Uni has good cost performance and is also a leader in decentralization.
Once the market improves, the leading coins will definitely have value behind them, truly attracting funds. It's not scary to decline; what's scary is not daring to accumulate some valuable coins during a downtrend. Lightly position to target levels should be entered. Although this year is tough for the crypto market, it has always been a place of high returns and high risks. Learn to stay out of the market during high-risk phases and look for opportunities to buy spot, and then you will also have a share of the subsequent high returns.
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