Today I saw a question on Twitter asking why, during the pandemic when the market was already so difficult, it was not able to drop as much as it is now, and why there are still many altcoins continuously hitting new lows?
I think this is a question that everyone is curious about, especially those who are heavily invested in altcoins and entered the market to buy the dip after the big drop in September last year, probably currently facing losses of at least 30% to 70%. Many are worried that if the market indeed fully enters a bear market, will these altcoins drop another 90% like in the last bull market.
In fact, the American economy also went through a recession during the pandemic, but it was the shortest recession in U.S. history, lasting only two months. At that time, the unemployment rate soared to 14.7%, and the Federal Reserve initiated unprecedented monetary easing and promised that zero interest rates would remain until 2023. But as everyone knows, they started raising interest rates in 2022, and the market entered a bear phase. So, although it seemed very difficult during the pandemic, it wasn't that hard, but now the difficulty is rising sharply, and this is without any economic recession occurring. Once a recession or trading recession occurs, I estimate the operational difficulty will be even greater.
Even if there will be a rebound in the next 2-4 months, I personally believe that the performance of most altcoins will still not look good. At this time, we need to see which altcoins have the best chance of rebounding. This is also the main reason why Brother Feng has always emphasized the importance of timely portfolio adjustments.
Currently, I have also gradually adjusted my altcoin holdings, but I won't disclose which ones I switched to, as everyone's views are certainly different. Most of the ones I switched were those that had already dropped significantly and had the opportunity to rebound, including some higher market cap mainstream altcoins. For those unsure about which to adjust and which not to, today ACT plummeted directly, looking like it might go to zero, clearly indicating that the big players have already run away. For the altcoins with fundamentally weak cases, if one insists on not adjusting their portfolio, they must set a good stop-loss. Currently, second-tier altcoins with weak fundamentals have a risk of plummeting at any time, which is indeed a bit scary.
