Dear ones, Little K has been overwhelmed by the market these past few days! BTC has returned to the $100,000 mark after 3 months, and ETH has surged 20% in a single day! Is this a return of the bull market or a case of 'don't run, fellow countrymen'? Little K will quickly help you uncover the truth behind it and see if altcoins can continue to soar~
🔥Three fires of explosive growth: Who ignited the market, meow?
1. Easing of U.S.-China tariffs
The Chinese Vice Premier visits the U.S. for talks, and the market expects 'tax pause'; risk assets are collectively dancing! Even gold is partying with BTC.
2. The Federal Reserve is taking a dovish approach and distributing sweeteners!
The probability of interest rate cuts in July has soared to 75%, and liquidity expectations have instantly rebounded! Institutions hurriedly grab shares, fearing they might miss the last train.
3. ETH Pectra upgrade is a bombshell good news!
Layer 2 performance improvements + account abstraction advancement may reduce gas fees by another 30%! Little K calculates that the DEX ecosystem is about to take off~
Little K's sharp commentary:
This market is reminiscent of 'the hungry wolf pouncing on its prey'! Bears were liquidated for $819 million overnight, the severity is comparable to March 12…
The ETH/BTC exchange rate surged 13% in a single day, finally shedding its 'stablecoin' label, and Vitalik is beaming with pride!
🌟 Why has ETH become the leader? Two major bombshell analyses
1. Pectra upgrade: Layer 2 goes directly into overdrive!
- Block throughput increases by 50%, EVM optimization makes smart contracts smoother~
- Gas fees cut by another 30%, the on-chain ecosystem is about to reach new heights! Little K is already waiting for ARB and OP, sitting tight for takeoff!
2. ETF staking expectations: Institutions are racing to allocate!
- Grayscale has been increasing its ETH holdings for 3 consecutive weeks; the approval window opens in early June~
- If approved, ETH's annualized return could soar above 5%, definitely a 'lying down profit machine'!
Little K's bold statement:
This wave for ETH feels like 'the top student who has been holding back for years suddenly explodes', but the key is whether DEX trading volume can double after the upgrade! Otherwise, it’s still just speculation~
⚠️ Little K's risk alert: Avoid these pitfalls!
1. Interest rate cuts may be postponed until September!
Dahua Bank predicts that the Federal Reserve's delay tactics could reverse liquidity expectations at any time, and BTC might drop 10% in a flash!
2. Warning for altcoin traps!
DOGE and SOL are rising but trading volume hasn’t increased, be careful of profit-taking selling! Little K suggests: Quick in and out, don’t fall in love~
3. Be cautious with highly leveraged contracts!
The leverage rate across the network has broken a new high for the year; a single pin can cause liquidation!
CZ's divine rebuttal:
‘The opportunity to buy BTC before the government does is disappearing!’ (Arizona has legislated to include BTC in reserves, shivering.jpg)
💼 Institutional movements: What are they secretly buying?
- Grayscale: Has been aggressively buying ETH for 3 consecutive weeks, suspected to pave the way for ETF staking~
- MicroStrategy: Added another $150 million in BTC, total holdings exceed $20 billion!
- Retail reaction: The fear and greed index jumped from 'extreme fear' to 'greed', FOMO sentiment is emerging!
Little K's insights:
This round of increase is clearly led by institutions, while retail investors are still hesitating~ Once everyone rushes in, it may be the peak of this phase!
🚨 Little K's operational strategy: Stability with a bit of risk is the way to go!
- BTC: Don't chase highs above $100,000! Wait for a pullback to $96,000 to buy in batches; biscuit holders remain calm~
- ETH: Keep a close eye on the $2500 resistance level in the short term; in the medium and long term, the approval of staking ETFs will be a positive!
- Altcoins:
- SOL can try long positions lightly if it stabilizes around $160
- Meme coins (DOGE, PEPE) should be quick in and out, don’t be a 'simp'!
- Lightning avoidance guide:
- Low market cap altcoins should beware of 'one-day rise followed by a week of decline'
- Stay away from high leverage, cherish life~
🤔 The ultimate soul-searching question: Has the bull market really arrived?
Optimists:
- BTC breaks through previous highs; a new cycle begins in technical analysis!
- Interest rate cuts + ETF capital inflows, liquidity is double-stabilized~
Pessimists:
- The overall leverage rate is at a critical level, and a double explosion could happen at any time!
- Altcoins lack new narratives; they may be a fleeting phenomenon…
Little K's judgment:
The characteristics of an early bull market are evident, but it is most likely a 'slow bull'! Don't expect the insane rise of 2021; focus on two key things in May:
1. The direction of the Federal Reserve's June interest rate meeting
2. Progress on the approval of ETH staking ETFs
🌈 Interaction in the comments section: Little K is online, meow meow meow!
➠ How far do you think this wave can go? $120,000 or $150,000?
➠ After ETH upgrades, will Layer 2 tokens (ARB, OP) take off?
➠ If you are fully invested now, would you bet on BTC or ETH?
✨ Little K's warm reminder: Bull markets often have sharp drops, don't go All in! Stock up on some small biscuits and wait for a pullback; patience is the key to wealth~