Why is it said that the currency circle should speculate on the new rather than the old? How to correctly choose the currency to start with?
The new high after halving has arrived early. What is the difference from before? This cycle differs in 3 main ways.
Fewer pullbacks: Historically, cycles have seen sharp 30-40% pullbacks on the way to all-time highs, but this time, the decline has been smaller, with no more than 25% so far. Due to this continued “all up, no down” behavior, many believe these corrections indicate that BTC is accelerating this cycle.
Traditional institutional participation: The revolution brought by Bitcoin ETF: the capital flow of this cycle has been completely subverted. ETFs allow traditional retail and institutional investors to easily get involved in Bitcoin, but the concern that comes with it is: Will these products push up the price of Bitcoin too quickly? Will the influx of institutional funds and the expectation of widespread acceptance of Bitcoin trigger the peak of the Bitcoin market in advance?
Macroeconomic environment: The highest interest rate in 23 years: the economic outlook is cast into a shadow, is the world likely to face a recession? Bitcoin faces a real challenge! In this special macro environment, people may be inclined to liquidate risky assets. However, it’s worth noting that Bitcoin has yet to survive a true global economic downturn!
To sum up the possibility of this bull market, why is it said that the currency circle must speculate on the new rather than the old?
Advantages and Disadvantages of New Coin VS Old Coin vs. Advantages of Old Coin
1. There are many dead chips, and a large number of chips are at serious losses.
2. There are many believers and sufficient potential buying power.
3. Bull markets are sensitive to news
Disadvantages of old coins
1. Every upward price has a lockup plate
2. Insufficient attraction to newcomers
3. The chip structure is dispersed and there are many game factors
Advantages of new coins
1. There is no hold-up, and the selling pressure can be predicted.
2. New narratives that have never been heard before are more imaginative.
3. The chip structure is concentrated and there are few gaming factors.
4. The circulating market capitalization is low and only a small amount of capital is needed to achieve a substantial increase.
Disadvantages of new currency
1. The institution is unlocked and enters circulation to consume buying orders.
2. After the circulation market value increases, there will be more floating chips.
3. If there is too much profit from liquid chips, the rise will be weak.
How to correctly choose the bull market 100 times coin:
1. The hotspot section is extremely popular! AI, WEB3, decentralized derivatives exchanges, Metaverse, game Gamifi, NFT, new public chains, etc., are all the focus of market attention.These areas have excellent fundamentals and unlimited potential!
2. Rich in narrative power, committed to ecologically sustainable development, with unlimited growth potential, and the magical ability to make money! These currencies are not just digital assets, but also treasures that can tell stories.
3. Look for projects with a market value of less than US$200 million, or even preferably less than US$100 million. Even if the project is excellent but the market value exceeds the standard, you can still wait for a price correction before entering the market.
4. Combined with market rules, we know that holding digital assets during the bull market and holding them for a long time can reap huge value in the future. Especially for those new projects born between October 2021 and 2023, they have not yet experienced a bull market, so they are not troubled by hold-ups and will not be pressured by pull-ups. This means they have unlimited growth potential, so your investment is only limited by time. (LDO 2.5 billion, SSV 600 million, ethfi re-pledge section)
5. High-profile and well-known institutional investors such as A16z, DCG, CoinList, Coinbase Ventures, Red Circle Foundation, Grayscale, etc., including institutions that have invested in Binance IEO projects. Their involvement not only increases the credibility of the project, but also provides a strong endorsement for your investment.
6. It should not be more than 5 times the cost price of the institution. The closer it is to the cost price of the institution or banker, the better. It is best to break the currency, which has the participation of a large institution. (The harder the price falls, the larger the space behind it. Horizontal The longer it is, the higher it stands. For example, metis went horizontally from April to December last year, and it didn’t move much for 8 or 9 months.)
7. Have a strong moat, no strong competitors, the best monopoly position, strong capital, and no competitors.
Note on the market outlook:
After the passage of the big-pie ETF, the market still needs to continue to observe the inflow and outflow of funds, and the same is true for Wall Street. However, there may be liquidity challenges in the future: daily output is difficult to meet purchasing and trading needs. If long-term investors persist, exchange liquidity may be extremely scarce. This may cause even a small amount to quickly drive up the price of the pie, from 300,000 US dollars to a million dollars or even more exaggerated. But this may also evolve into a harvest feast of global liquidity!
