Last night, the CPI inflation data was all lower than expected, which should have boosted the market, and it indeed started off that way. But then sudden news about the Middle East situation rapidly deteriorating dragged the market down. It is reported that US-Iran nuclear talks are close to collapse, Israel has notified the US of plans to strike Iranian nuclear facilities, and the US expects Iran may retaliate against US military bases in Iraq. The Middle East conflict 2.0 seems to be escalating... It looks like the Middle East war 2.0 is coming again, which is also the main reason for the market pullback.
Today's PPI data is within expectations, and its impact on the market is not significant. The recent focus should still be on geopolitical conflicts and US-China trade negotiations!
From last night to today, the market generally fell, but Ethereum (ETH) performed outstandingly. In terms of ETFs, the inflow of funds for ETH reached 240 million USD, setting a record and surpassing Bitcoin ETF's 160 million USD inflow. This is also one of the important reasons for the recent strong performance of the ETH/BTC exchange rate. It seems that institutional enthusiasm for ETH is rising; have the Americans finally remembered Bitcoin and Ethereum?
From the daily chart perspective, Ethereum has recently made a new high in the short-term K-line, showing a top divergence. The K-line has pulled back after reaching a high, but the entire trend is still in a bullish arrangement, with short-term moving averages providing support below. Therefore, the pullback space is limited. Watch the 2700 support level; after adjusting and building momentum, ETH can continue to challenge the 3000 mark at any time!
Many people ask what to do with altcoins. Altcoins are very sensitive right now; as soon as the market slightly retraces, they follow and drop. This round of altcoins may be like your ex-girlfriend, never able to return to the past. Those once beautiful memories can only be deeply buried in your heart. Currently, the market is rising with Bitcoin, news is filled with Bitcoin reserves, ETFs, and institutional investors. Altcoin news has lost its waves.
This is like resources and money flowing to the upper class that does not lack money, while the liquidity of cryptocurrencies continues to flow toward Bitcoin, and it is a continuous influx. Regardless of news, funding, almost all resources are flowing to Bitcoin, while altcoins are constantly being drained!
So regarding altcoins, I have always said: in the current overall market environment, if you want to continue to seize potential altcoin opportunities, it is best to focus on short-term trading, ensure stop-loss and take-profit measures, and definitely control your position ratio well. Don’t let yourself fall into a new quagmire with altcoins again!
Especially when the market rebounds, remember to reduce your positions. Money can’t be earned infinitely, but losses can be!
Now let's talk about the alpha airdrop.
How much longer can we play?
As the alpha project has been online longer, with more participants, costs increase, and profits decrease. From initially earning 15 points a day, with a 15-day cycle yielding 225 points to meet most airdrop requirements, to now having thresholds of over 230 points. It’s very hard to earn returns with less than 17 points per day now. The only way is to increase trading volume and costs. For new players entering the market, this increases the breakeven cycle and reduces the enthusiasm for continued participation.
The alpha project offers low returns and is not particularly complicated. Alpha airdrops have transitioned from early yields of over 100 USD+ to 80 USD+, and recently 800 SKATE for 236 points, worth 46 USD. Returns are decreasing, costs are increasing, and the wealth effect is weakening!
Any playstyle has its cyclical nature. Despite Binance upgrading its risk control system, the issue of bots manipulating scores has not been completely resolved. This not only undermines fairness but also increases the platform's operating costs. Additionally, market saturation is also a negative factor; the supply of quality projects in the Alpha project may tend to deplete. In the long term, the platform may struggle to maintain high-frequency, high-value airdrop activities.
That's all for today. I am July, and you can follow my daily article updates!
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