In recent days, the cryptocurrency market has experienced significant volatility, particularly in the price of Bitcoin, which has undergone dramatic fluctuations in a short period of time. The change in market sentiment has been mainly influenced by several key events, the most notable of which are the Microsoft shareholder vote and the negative comments from Bloomberg.
First, Microsoft recently held a closely watched shareholder vote to discuss whether to allocate 1% of its assets to Bitcoin. The result of this vote was surprisingly disappointing, as Microsoft did not pass the proposal. Although many industry insiders expected Bill Gates' consistent opposition to cryptocurrencies, the suspense of the shareholder vote still caused significant psychological fluctuations in the market. Microsoft's top two shareholders, Vanguard Group and BlackRock, both have an important presence in the cryptocurrency market, especially Vanguard Group, which is the largest shareholder of MicroStrategy, which has been promoting Bitcoin as a strategic reserve. The market generally believed that these two institutions would push Microsoft to adopt Bitcoin, but the voting result was a major disappointment, directly dampening market sentiment. Bitcoin prices briefly fell to $94,400 in the early morning, although they have since recovered, the $95,000 support level remains strong, indicating that the upward trend has not been completely reversed.
Another important market news is that Bloomberg has published an op-ed expressing strong negative views on Bitcoin. Bloomberg believes that if the US government were to include Bitcoin in its strategic reserves, it would lead to the "biggest crypto scam in history" because Bitcoin lacks industrial use and cash flow, and exists only as a speculative tool. This statement immediately triggered market unease, particularly among Bitcoin holders and supporters. In addition, Bitcoin's staunch critic Peter Schiff also took the opportunity to express his opinion, arguing that the Biden administration should sell the Bitcoin it already holds, which would not only reduce the budget deficit, but also eliminate the absurd idea of establishing a Bitcoin reserve. Although Peter Schiff's comments often provoke strong reactions in the crypto community, his critical voice has also influenced market sentiment.
In contrast, potential presidential candidate Donald Trump has also released positive news related to Bitcoin. According to sources, Trump is closely monitoring the Bitcoin price and hopes that it will break through the $150,000 level in the early days of his term. More interestingly, Trump's second son also stated during a Bitcoin conference in the Middle East that Trump believes in Bitcoin's future and predicts its price could soar to $1 million. These statements have undoubtedly brought more imagination to the market, and if Trump truly supports Bitcoin and hopes to incorporate it into the US economic system, the future of cryptocurrencies will be brighter.
In addition to the impact of macroeconomic and policy factors, the flow of funds in the cryptocurrency market has also undergone changes recently. Altcoins on CEX have experienced consecutive corrections, leading to a renewed influx of funds into on-chain projects. Cryptocurrency projects related to AI, especially MEME coins like $ai16z, have performed remarkably well recently, with their market capitalization exceeding $800 million, becoming a hot spot in the market. Particularly driven by the emergence of new AI large MC memecoin like $arc, the on-chain market has shown a strong upward momentum. The recently launched AI MEME coins, such as $ai16z and $arc, have both exceeded $100 million in daily trading volume, with their market capitalization increasing significantly, indicating that cryptocurrency projects in the AI field are attracting more and more investor attention.
On the other hand, some of the new projects recently launched by Binance have shown mixed performance. In particular, $move, although it attracted a large influx of funds upon its initial launch, its price has now fallen back from a high of $3 to $0.65, reflecting the high risk in the secondary market. Another star project, $me, although its price increase has been relatively stable, its market capitalization has reached $5 billion, indicating that it is still in a relatively high valuation range. In addition, the emerging MEME coin $koma on the Binance Chain has performed particularly outstanding, with this token derived from SHIB seeing a surge of over 20 times in the past five days, demonstrating its strong market appeal.
Overall, the flow of funds and investment hotspots in the current market have undergone changes, with more and more investors starting to turn their attention to small-cap, high-growth potential projects. In the current market environment, if investors can choose projects with a market capitalization between $20 million and $50 million and capture their breakout points, returns of 10 to 20 times are not impossible. However, for larger market cap projects, investors should be more cautious and view them as choices for stable investment, rather than opportunities for short-term surges.
In summary, although the market has experienced some negative factors recently, the overall market sentiment remains relatively positive. The upward trend of Bitcoin has not changed, and with the push of large capital, the cryptocurrency market still has many opportunities. In the coming months, as policies become clearer and more institutional investors join, the market may welcome a new round of upward cycle.
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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