Metrics Ventures, a secondary fund in the crypto market, December market observation guide:
1/ The market performance this month can be described as turbulent, the grand momentum of Bitcoin has accelerated the pace of entry for many off-site hesitant funds, and the obvious money-making effect of the strong Altcoin with scarce chips has driven a large number of bottom Altcoins to scramble for the vacuum of chips, but the actual profitability in the on-site market seems to be scarce, the MEME that had accumulated a lot of popularity in the early stage has already started to consolidate.
2/ As of the time of writing this article, the marginal effect of external events stimulating crypto assets has been clearly weakening day by day, and both MSTR and BTC have shown top-level high turnover signals, all things will follow the rules of asset operation, the uninterrupted upward trend will inevitably have an end and a climax.
3/ The new purchasing power mainly comes from the increase of funds in the retail market, which is not compatible with the logic that has been played out in the circle, and we have also witnessed the transfer of pricing power in the market, which has important guiding significance for the subsequent investment work.
Review and comments on the overall market situation and market trend:
The recent market has been very hot, the new funds, especially the retail funds from the US, Korea and Europe, have brought a lively atmosphere to the market, and the DeFi under regulatory improvement has also shown endogenous push, but it is worth noting that apart from the aforementioned sectors, the coins that have performed well along the way are the old-brand strong Altcoins, and the meme coins driven by this have been surprisingly undivided.
An undivided rise is meaningless, like water without roots, especially in a 24-hour continuous trading market, the lack of division is another manifestation of market weakness, therefore, although Tether has been continuously issuing stablecoins, we still hold a pessimistic attitude towards the rebound of most Altcoins, we are more inclined to believe that this seemingly lively rebound actually proves the subversion of the old CEX trading system.
In addition, we want to particularly remind you that the concentrated volume increase of MSTR, BTC in the past two weeks and the inability of Bitcoin to continue to accelerate above $10,000 are quite pessimistic short-term signals, although we believe the trend still exists, but when we notice the concentrated on-chain cash-out signals and the concentrated off-site view of MSTR rising to $1,000 and Bitcoin's eternal trend, the risks here have accumulated to an alarming degree.
From historical experience, no one can time the market perfectly, but respecting common sense and trends is a better decision when facing the digital currency market at the moment, we believe that the previous 4-year cycle has already changed, and this round of the cycle will continue to extend its life cycle, because we respect the trend of the US dollar system's shift from reality to virtuality, but the storm is coming, we hope everyone can go through the remaining market safely.
