This round of the Bitcoin bull market has shown a strong upward momentum, which can be divided into three main stages, each with different driving forces and market reactions. Currently, we are in the middle of the second stage, but the market outlook is still worth watching.
First stage: Approval of Bitcoin ETF
The approval of Bitcoin's spot ETF has undoubtedly laid the foundation for this bull market. As an asset management tool, ETFs have greatly enhanced the institutional investment appeal of Bitcoin. During this stage, market confidence in Bitcoin reached a new high, pushing the Bitcoin price to temporarily break through the $74,000 mark. The driving force behind this surge was the influx of institutional capital and the gradual acceptance of cryptocurrencies by the traditional financial market. From a technical perspective, Bitcoin broke through several key resistance levels, attracting more capital to enter the market.
Second stage: Election season
With the approach of the US presidential election, the Bitcoin market entered a second wave of upward momentum. Changes in market sentiment during the election period had a significant impact on Bitcoin prices. During this stage, although we have not yet confirmed whether this wave of upward movement has reached its peak, Bitcoin's price has once again exceeded $93,000. Compared to the first stage, the price increase in the second stage began to show some narrowing, with the upside potential of the market being affected by sentiment and liquidity. In this context, the future trend of Bitcoin will depend more on changes in market sentiment, especially the inflow of off-chain capital.
Third stage: Trump's re-election and interest rate cuts
The expected third wave of upward movement will come with the possible re-election of Trump. If Trump is re-elected as the US president in 2024 and implements an interest rate cut policy, this will provide stronger momentum for the Bitcoin market. Trump's policies may become a catalyst for the cryptocurrency market, especially his proposal to increase the US Bitcoin reserve to 1 million, which will greatly enhance market demand for Bitcoin. In addition, US cryptocurrency policy is likely to attract a large influx of capital, and Bitcoin's price may rise to a high of $140,000 to $150,000.
Trump's policies and the future of cryptocurrencies
The potential impact of Trump's policies should not be underestimated. In addition to enhancing the US Bitcoin reserve, Trump has also stated that he hopes to turn the US into a global cryptocurrency hub, and if this strategy is implemented, it will attract a large amount of capital to flow into the cryptocurrency market. For example, the US investment company MicroStrategy has already started to buy a large amount of Bitcoin, and with the participation of large institutions, the liquidity and scale of the Bitcoin market will be further expanded.
Furthermore, some investment banks on Wall Street have also started to buy Bitcoin spot ETFs, further pushing Bitcoin towards the mainstream of financial assets. All of this indicates that the future prospects of cryptocurrencies are very bright, and the continuous influx of institutional capital will provide endless momentum for the market.
The rise of Altcoins and the AI track
With the continuous heating up of the Bitcoin market, Altcoins and other emerging tracks have also begun to usher in an explosive period. Especially driven by AI and MEME coins, a new cryptocurrency ecosystem is rapidly emerging. For example, AI coins and MEME coins had very impressive gains in early 2024, with some projects seeing 10-fold increases, attracting a lot of investor attention.
Nowadays, the tracks in the crypto market are becoming clearer, including DeFi, GameFi, the TRON ecosystem, the BTC ecosystem, and a series of other hot areas. Among these tracks, the combination of AI+MEME is seen as the main force of the future bull market. AI and MEME coins not only have huge market potential, but also have considerable upside space as more and more capital flows in. Just like MEME coins like PEPE, although the price has fluctuations, the decline has never returned to the starting point, so in this general upward trend, investors can reap 3-5 times the returns.
Current market operation strategy
Recently, the market has seen some strong currencies, which often perform well when the overall market pulls back. For example, XTZ, an established public chain project, has risen against the trend when the overall market has pulled back slightly, showing strong market performance. Based on this observation, investors can consider laying in wait for such promising currencies during market adjustments, and wait for their explosion in the next wave of upward movement.
In fact, many established public chain projects (such as HBAR, ALGO, SCRT) have shown strong upward momentum recently, which also provides a reference for future investment. In such a market adjustment, if you can layout potential currencies in advance, you can often gain considerable returns when the market rebounds.
In summary, the Bitcoin and Altcoin markets will face greater challenges and opportunities in the coming months. With the gradual implementation of Trump's policies and the entry of more institutional capital, the cryptocurrency market will enter a new stage of development. For investors, choosing the right track and currencies, as well as entering and exiting at the right time, will be the key to achieving a good return. In this general upward market environment, AI and MEME coins are undoubtedly an important track worth paying attention to.
Finally, there is actually a lot more that hasn't been written, such as specific opportunities and specific decisions, which are often not something that can be summarized in a single article.
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