Hey, I'm Consolidation! Don't be fooled by Bitcoin's recent surge; guess what? The spot trading volume in the entire crypto circle actually plummeted by 22% in the second quarter! This is no small matter; there's something big behind it.
Institutional big shots are buying like crazy, filling their wallets to the brim!
Recently, those Bitcoin ETFs in the U.S. (simply understood as a legal channel for large institutions to buy Bitcoin) have gone absolutely wild! Buying nonstop, with positions hitting new highs. The few Bitcoin spot ETFs recently approved in Hong Kong are also doing great, with trading volumes skyrocketing. What does this indicate? Big money is frantically building positions! They are playing the long game, not the quick in-and-out strategy we retail investors use.
Where has all the money gone? The on-chain world is bustling!
The trading volume has declined, but the on-chain activity hasn't stopped at all! The activity of Ethereum's Layer 2 networks is off the charts, with various new projects and new ways emerging constantly, and transaction fees are rising along with it. The money isn't being tossed around on exchanges; it's all going on-chain to build and participate in the new ecosystem! This is the real gold mine of the future.
What about retail investors? Don't panic, keep up with the rhythm!
Dollar-cost averaging is king: Don't worry about short-term volatility, especially keep an eye on leaders like Bitcoin and Ethereum. Buy regularly to average out costs, and hold on tight without letting go.
Gold mining on-chain: Don't just watch the prices bouncing around on exchanges. Go to Layer 2, check out the newly emerging quality ecosystems, and participate in early projects for greater opportunities.
Maintain a stable mindset: Institutional investors are entering the market in droves, and the on-chain activity is heating up, indicating that big money is confident about the future. We retail investors shouldn't be scared off by the short-term drop in trading volume; holding quality assets is the way to go!
Pointing out consolidation: The decline in trading volume doesn't mean it's over; on the contrary, the market is shifting and upgrading! Institutions are building positions en masse, and the on-chain ecosystem is exploding, all gearing up for the next wave of market action.
What we need to do is to see the direction clearly and focus on consolidation! I'll help you get the right chips, don't get left behind before the launch!