Two important global economic events have recently occurred, which have had a positive impact on the cryptocurrency market. First, the Federal Reserve and the Bank of England have both cut interest rates by 25 basis points, and this loose monetary policy has increased liquidity in the market. Second, if Trump is successfully re-elected, he may continue to push for rate cuts, accelerating the flow of funds in the market, which is undoubtedly good news for cryptocurrencies.
This low-interest environment will gradually lead investors to turn to risky assets, and cryptocurrencies are one of them. Initially, funds will be concentrated in relatively "stable" cryptocurrencies such as Bitcoin, and then slowly flow into Ethereum and other altcoins, ultimately driving the entire market.
2. Bitcoin market: Bullish signs, market "blood-sucking" phenomenon
Bitcoin has recently seen a sharp rise, attracting a lot of institutional capital. Especially after the approval of the Bitcoin ETF, Wall Street institutions have treated Bitcoin as a low-risk asset, even like government bonds, becoming a "value preservation" choice. This has led to a large amount of capital flowing into Bitcoin, resulting in relatively concentrated market liquidity, making it difficult for other altcoins to see significant gains.
However, this "blood-sucking" phenomenon is not a bad thing. The entry of institutional capital has increased the certainty of Bitcoin, which is good for the long-term development of the entire market. Once liquidity is further released, Ethereum and other altcoins will also gradually see stronger upward momentum.
3. The prospects of altcoins: Welcoming the upward cycle
What many investors are most concerned about is actually altcoins, especially whether they will experience a surge during the bull market. The current low-interest environment is helpful in guiding more funds to flow into the cryptocurrency market, especially to the riskier altcoins. When funds flow into altcoins, their prices may see significant growth.
If Ethereum's price stands above $3,000 and stabilizes at this level, it is expected that many altcoins will follow suit, with potential gains of over 30%. Once the market fully enters a bull market, the altcoin market will not only start earlier, but the coverage will also be wider, potentially affecting multiple hot tracks.
4. Recommended hot altcoin tracks
Based on the current market environment, there are some quality tracks and representative coins worth paying attention to:
L1 public chain track: Representative coins such as SUI, FTM, SEI, NEAR, etc.
AI track: Including TAO, FET, ARKM, these coins related to artificial intelligence have good potential.
Modular track: TIA, ALT, DYM are currently the coins receiving more attention.
DeFi track: Such as AAVE, PENDLE, these are the key projects in decentralized finance.
Game infrastructure track: Such as RONIN, IMX, SAGA, which are infrastructure coins supporting blockchain games.
Meme track: SATS is one of the currently hot meme coins.
The coins in these tracks may perform well in the next bull market, and they cover a wide range of application areas with a good user base.
5. Analysis of high-potential altcoins
SUI: SUI's long-term potential looks good, and its recent rise has benefited from the Federal Reserve's rate cut and market sentiment fluctuations. Its collaboration with APT has also driven its price, but investors need to be aware that SUI has a high turnover rate and there is a risk of market makers unloading at high prices.
PEPE: Although PEPE has a huge issuance, it has adopted a token burning mechanism, which is expected to reduce the supply and drive up the price. Meme coins like PEPE often see rapid appreciation due to market sentiment during bull markets.
RAY: RAY has benefited from the high volatility of Solana, and its price has risen significantly recently. The popularity of meme coins in this cycle has also attracted attention to RAY's performance, and as long as on-chain activity remains active, RAY's price is expected to continue to rise.
DOGE: Musk continues to support DOGE as always, and as long as DOGE breaks through the key $0.50 level, it is likely to launch an attack on $1, or even $2. The market reacts strongly to Musk's support signals, and the outlook for the next few years is still optimistic.
MKR: As one of the veteran coins in the RWA track, MKR is currently in a transformation period, which is both a challenge and potentially an opportunity. With the improvement of market sentiment, its transformation is expected to bring new growth points.
Finally, there are many other things that haven't been written in, such as specific opportunities and specific decisions, which are often not something a single article can encompass.
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