How can the cryptocurrency investment market follow the trend?
Yesterday, I shared with you my views on silver and A-shares. Some general laws in these two markets also apply to the digital currency market.
As far as the current volume is concerned, the overall digital currency is still a small market; as far as the investment attributes of digital currencies are concerned, the positioning of real big funds (such as traditional financial institutions) is still in the groping stage, and only a few dare The crab-eating institution is on the scene. These two characteristics are destined to be more affected by the outside world and higher risks than the silver and A-share markets I shared yesterday. This is what ordinary investors should always be vigilant about.
The current global environment is the release of global currencies. Under this premise, all investment markets will be flooded by floods. As long as this premise remains unchanged, all investment markets will continue to bubble.
Therefore, the digital currency investment market does not lack external funds, so besides this, are there any other important factors in the digital currency market that will affect its next trend? Yes, that is the engine of this bull market-institutional investors.
If one-day institutional investors start to change their attitudes and believe that Bitcoin is no longer attractive, then they will sell collectively and suppress the market. I think this is probably the biggest risk in this bull market, and we should pay close attention to it.
Judging from the current situation of institutions entering the market, whether it is Grayscale or MicroStrategy, their current investment is still very small compared to traditional institutional investors. Therefore, a large number of institutional investors are still on the sidelines, even if some have already entered the market, they are still testing the waters with small funds and have not made major moves.
On the other hand, under the current market conditions, if institutional investors who already hold coins want to sell, judging from the average price of bitcoin they bought (about 20,000 US dollars), most of the profits are not even doubled. Now, they are unlikely to play at this point.
Therefore, based on this judgment, I believe that the current market risks are still under control, and the general trend is still upward. We, ordinary investors, should not act rashly and just ride the windmill.
This is the way we take advantage of the trend at this stage.
This is why I have always emphasized that at this stage, do not sell the high-quality chips in your hands, whether it is Bitcoin, Ethereum or DeFi head projects that I am optimistic about, it is not the time to sell for profit. Selling at this time is equivalent to getting off in the early or mid-term of the bull market, and the chips sold at this time are often difficult to pick up in the future, because even if it pulls back, the price of the callback may be higher than the selling price. This causes investors to completely miss the larger market later.
In the past few days, some readers have left a message asking why there is a risk of $1,500 on Ethereum? In fact, I don’t mean that there will be risks if Ethereum is more than $1,500, but that after Ethereum has stabilized at $1,500, there will be no resistance to continuing to rise. In this case, risks can easily accumulate. At this time, any one of Bitcoin and Ethereum’s rapid rise may lead to the early end of the bull market. Only a slow rise and multiple deep corrections can make the bull market healthy and long-term development.
This is the key issue that runs through the current round of the market, and it is also the focus of our attention from time to time.
For investors who have already thrown away their chips, I suggest that you calm down first and don’t rush to recover the sold chips. You may wish to change your mindset and completely put aside the idea of making money in this round of market conditions. A bystander mentality observes the next development of this market and tries to analyze and judge the next trend of the market according to their own understanding, turning this market into an opportunity to exercise mentality, learn knowledge, and accumulate experience.
There is never a shortage of opportunities in the investment market. What is lacking is the correct attitude and rational thinking. If this round of market does not make money but has exercised a calm mind and trained advanced thinking, this will be a more valuable asset than profit.