I tried to write something yesterday, but I can't seem to conclude anything other than that waiting is the most important thing. With Chairman Warsh's election, uncertainty about the new Fed chairman has disappeared, and confidence in the Fed seems to have increased. While hawkish, the market seems to be more positive about the credibility that Chairman Warsh will bring. The US stock market appears to have reached a short-term peak and is undergoing a correction. The correction can be divided into two types: 1. Price correction 2. Time correction Neither of these corrections is over yet, so you should still trade conservatively. Cryptocurrencies will likely correct more immediately when the US stock market falls. On the other hand, if there are many corrections first, a bottom may form first. So, I think we should continue to pay attention to this. The frenzy in raw materials like gold and copper appears to be over, and similar price and time corrections are expected. The original scenario was that the Clarity Act would end very positively, quickly gaining market acceptance, and a gold price correction would lead to a buying spree in cryptocurrencies. However, that wasn't the case. As I mentioned at the end of the last video, staying a bit further away from the cryptocurrency market until the Clarity Act is clearly passed could be a good option. However, the positive aspect is that both UNI and ZRO have directly purchased their tokens, rather than shares of their companies, in traditional finance. This is significant. Of course, after subtracting the gains, we concluded that the market is still underperforming and lacks liquidity. However, from a medium-term perspective, this could also be proof that traditional financial institutions haven't completely abandoned tokens. I believe this demonstrates the potential for selective infrastructure stocks to only increase in the medium to long term. From here, there's a high probability that we'll see another bottoming movement over the next few months. Ultimately, this is also a significant move, like the Clarity Act. Unless there's an extreme positive factor, like the launch of a BTC ETF at $30,000, trying to predict a bottom and trading seems pointless. It's safer to enter once a movement has occurred. Most market participants can't make money in a bear market. Even if they do, they don't make as much money as in a bull market. Therefore, I think it's best to protect your capital by investing in products that offer interest or farming. However, as always, stocks that are showing strong market movements, like MON, HYPE, and ZRO, are worth tracking and trading, or even accumulating spot assets.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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