BTC recovers, ETH and altcoins are not doing well
Bitcoin has recovered today, but Ethereum and other altcoins have not performed so well. A good news can stabilize Bitcoin sentiment, and then we have to wait until tomorrow to see how the situation changes. Maybe Trump will say something about cryptocurrencies after taking office.
Market Outlook: Will it fall below 90,000?
You asked me whether Bitcoin will fall below 90,000 again? It is hard to say, because there are two factors in the market. On the one hand, the Washington Post reported this morning that Trump may issue an executive order related to cryptocurrency on his first day in office, which gave the market some positive expectations. On the other hand, the rise in CPI data may make market sentiment more nervous. However, the impact of this CPI increase may have been reflected in the price in advance. In general, people should pay more attention to Trump's policies, especially the impact on cryptocurrency.
At present, although the price of Bitcoin has dropped to 94,800, there is not much room for further decline. Don't expect the price to drop to 80,000 or 70,000 quickly, this situation is not realistic. Even if tomorrow's CPI data is not good, the market may have digested these negative effects. If the data is good, market sentiment will pick up.
The Prospects of Altcoins
Many friends say that even in a bull market, it is a Bitcoin bull market, and altcoins are out of the game. In fact, the market is not completely without opportunities, such as PEPE. In January 2024, it was still fluctuating at a low level with extremely low trading volume, but with the rise of ETH in February, the market of PEPE also began to explode.
The market is like this. When there is a panic, liquidity withdrawal makes everyone panic, and the price drops to the point that you are afraid; but under the FOMO mood, everyone buys crazily again, and the price rises to the point that you doubt your life. For the market of altcoins, the rise of Bitcoin and Ethereum is necessary. Even if the AI concept MEME coin takes off, it has to wait for Bitcoin to rise first.
Don’t compare the altcoin season with 2021. Although the market was flooded at that time, not all currencies rose sharply, and only the strong became stronger. In the 2017 surge, although interest rates were raised, the total market value was small, and funds could drive prices skyrocketing. Now, the market value of the entire crypto market has increased a lot, and with the changes in the US macroeconomic policies, it is more difficult to choose a currency.
How to choose altcoin?
When choosing altcoins, it is best to focus on mainstream public chains and some leading projects, such as: $BTC, $ETH, $LINK, $AAVE, $SOL, etc. There are not many AI-related projects at present, but "AI + Crypto" may be a new trend in the future.
Remember, I said before that the low point of Bitcoin is the low point of altcoins. When FOMO appears in the market, don't be greedy, just make money and leave. The real big market usually only lasts 3-5 weeks, like the period from November 6 to December 6 last year, the biggest increase occurred in these weeks. So, friends, seize the opportunity.
Summarize
The projects on the chain have high risks but high returns, while the secondary market has low risks but limited gains. If you miss the opportunity, you may be stuck for a long time. Therefore, grasping the trend of Bitcoin, keeping up with the market rhythm, and doing a good job of risk control are the keys to making money.
Come on, let’s seize this wave of market together!
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Investing involves risks. The above content is personal sharing and does not constitute investment advice!