Crypto market trend analysis and outlook
Recently, I had the opportunity to think deeply about market trends, and I would like to share some insights.
The overall trend of the crypto market is expected to become clearer only after September. Considering the macroeconomic headwinds, summer liquidity constraints, and quarterly position adjustments, the true market dynamics may only become apparent after the August holidays when participants return. Recent market activity shows that the rise of most altcoins is mainly driven by short squeezes. Traders are chasing the rally influenced by previous rebounds, but there is a lack of support from long-term holders. As expected, most tokens that surged sharply later experienced significant corrections.
Ethereum unexpectedly rebounded, with AI-related and popular cryptocurrencies leading this wave of market activity. In contrast, tokens with practical use, strong fundamentals, or buyback mechanisms performed exceptionally well, not only being more resilient during the downturn but also recovering faster. From this, a few insights can be summarized:
1. The demand for Bitcoin is real and lasting.
Traditional capital is passing through