Last night, the U.S. stock market plummeted due to the market's disappointment over the failure to end the U.S. government shutdown, with the Nasdaq dropping by 2.5% at one point, and stocks like NVDA falling by 5%. During the decline of the U.S. stock market, cryptocurrencies did not follow suit but instead experienced a rebound, creating a double bottom pattern with the low on November 5.
The crypto market is more sensitive compared to the stock market, always declining before the U.S. stocks and rebounding before the U.S. stocks stop falling. This has happened multiple times last year, and this time it validates this viewpoint.
As the U.S. stock market made a V-shaped recovery late at night, almost regaining its losses, the crypto market also followed suit with a surge. Compared to BTC, altcoins showed even more impressive gains, especially older coins like storage tokens and inscriptions. Meanwhile, the recent explosive coins like ZEC and AIA have begun to retreat.
Here are some suggestions for the market in the coming days:
Whether the U.S. stock market's V-shaped recovery indicates a bottom is still unknown. If the government shutdown or interest rate cuts bring about unforeseen issues, further declines may occur. If the U.S. stock market drops again, the likelihood of the crypto market following suit is much greater than that of an independent market.
The aftereffects of the crash on October 10 are not over yet; there may still be hidden risks in DeFi projects, exchanges, and treasury holdings. Many people are shouting that the bull market has returned and that the altcoin season has arrived, but it’s best to view this with skepticism.
There will not be a comprehensive altcoin season like in 2020-2021; only a phased altcoin market is likely. When Bitcoin is sideways or slightly up, altcoins may soar, but once it ends and a correction begins, everything that rose will fall back to where it started.
If you have low-priced tokens that are stuck, or if you chased after a surge, you can be a bit more patient. Generally, these older coins will not only surge once; they will have a solid increase that may last several days to one or two weeks (specifics depend on market trends). Setting a satisfactory take-profit order to secure gains or using a staggered take-profit strategy is essential to safeguard your profits.
Being overly greedy will ultimately lead to losses.
The crypto market is more sensitive compared to the stock market, always declining before the U.S. stocks and rebounding before the U.S. stocks stop falling. This has happened multiple times last year, and this time it validates this viewpoint.
As the U.S. stock market made a V-shaped recovery late at night, almost regaining its losses, the crypto market also followed suit with a surge. Compared to BTC, altcoins showed even more impressive gains, especially older coins like storage tokens and inscriptions. Meanwhile, the recent explosive coins like ZEC and AIA have begun to retreat.
Here are some suggestions for the market in the coming days:
Whether the U.S. stock market's V-shaped recovery indicates a bottom is still unknown. If the government shutdown or interest rate cuts bring about unforeseen issues, further declines may occur. If the U.S. stock market drops again, the likelihood of the crypto market following suit is much greater than that of an independent market.
The aftereffects of the crash on October 10 are not over yet; there may still be hidden risks in DeFi projects, exchanges, and treasury holdings. Many people are shouting that the bull market has returned and that the altcoin season has arrived, but it’s best to view this with skepticism.
There will not be a comprehensive altcoin season like in 2020-2021; only a phased altcoin market is likely. When Bitcoin is sideways or slightly up, altcoins may soar, but once it ends and a correction begins, everything that rose will fall back to where it started.
If you have low-priced tokens that are stuck, or if you chased after a surge, you can be a bit more patient. Generally, these older coins will not only surge once; they will have a solid increase that may last several days to one or two weeks (specifics depend on market trends). Setting a satisfactory take-profit order to secure gains or using a staggered take-profit strategy is essential to safeguard your profits.
Being overly greedy will ultimately lead to losses.
