What is the next trend in the cryptocurrency market?

quangviet94

Member
The Macro Money Flow Law in the cryptocurrency field typically goes through the following stages:

Stage 1: Money flows primarily into the first cryptocurrency, Bitcoin (BTC). Media coverage highlights the price increase of Bitcoin, creating attention and attracting new participants to the market, thus generating new money flow.

Stage 2: When the price of Bitcoin rises significantly and reaches a considerable high level, a portion of the money flow shifts to major altcoins such as Ethereum (ETH), Binance Smart Chain (BNB), Avalanche (AVAX), Cardano (ADA), Polkadot (DOT), Solana (SOL), Tron (TRX), Cosmos (ATOM), Polygon (MATIC), and others. These are usually high-cap coins recognized in the market. In the crypto market, money flow into a specific ecosystem often goes through these platform coins.

Stage 3: Smart money gradually moves towards mid-cap coins, typically those ranked from 50 to 100 in terms of market capitalization. Not all coins in this group experience price increases; only projects with solid foundations or positive upcoming news tend to see growth. Positive news may include the launch of new applications, attracting new investors/partners, collaborations with industry influencers, and more.

Stage 4: Money flow starts shifting towards low-cap coins. During this stage, many junk coins or meme coins may experience significant price surges, even multiplying their value by hundreds. This stage carries higher risks as rapid price increases can also lead to quick price declines. Therefore, caution is advised, and it is not recommended to allocate all assets into such coins, as significant risks and losses may occur.

Currently, BTC and altcoins have not escaped their downtrend. Pushing the prices of large-cap coins back up at this time is nearly impossible due to the following reasons:

  1. It takes a long time for whales to accumulate holdings and manipulate the prices to sell when there are many investors holding these coins.
  2. It requires a substantial amount of capital to drive the prices up due to the large number of tokens circulating in the market. Moreover, the challenging downtrend period has impacted major investment funds and exchanges, as evidenced by the collapse of FTX exchange and the struggles of Tier 1 investment fund Three Arrows Capital (3AC). Even in the current period, it is a difficult time for the economy with increasing inflation and continuous interest rate hikes by banks.
This is an opportunity for memecoins that have emerged in the market, experiencing rapid price surges in a short period. They do not require significant resources or human effort to create. The majority of tokens are held by their creators. This serves as motivation for Market Makers to create and drive up the value of these coins quickly before selling them on the market. It is indeed an opportunity, but it also carries risks if we do not invest properly in memecoins at this time.

From my personal perspective, I believe that the memecoin trend will continue at least until the end of the third quarter of this year. For newcomers in the market, it is crucial to exercise caution when dealing with memecoins because if you are not lucky, you may end up losing your entire investment in memecoins.

Fiat -> BTC -> Top Caps -> Mid caps -> Low caps -> Memecoins

This is only my personal experience, and I would greatly appreciate receiving insights and experiences from everyone! :love::love:
 

vanturhan82

New member
Your articles are very good and useful for newbies. Thank Bro!
 

trucbieu18hf

New member
I disagree with the author's viewpoint on memecoins. Memecoins are just a temporary trend and lack real substance. Investing in memecoins carries significant risks and is not recommended. Focus should be on projects with solid foundations and genuine potential in the cryptocurrency field.
 

kamtrunf8h

New member
I believe that focusing on memecoins is a good idea. Memecoins can create opportunities for quick profits in the current market. Despite the risks involved, if risk management and realistic target setting are employed, significant profits can be achieved.
 

quachcuong192

New member
I agree with the author's viewpoint on the difficulty of pushing up the prices of major coins in the current market environment. The cryptocurrency market is experiencing a downtrend, and generating strong price signals requires a significant amount of capital.
 

namturan8hg

New member
I agree with the author's perspective on the money flow division in the cryptocurrency field. Through the stages mentioned, money always moves from fiat to Bitcoin, then to larger coins, and finally to memecoins. This observation is commonly seen in the cryptocurrency market.
 

dain28hf8

New member
I don't believe in the memecoin trend and consider it to be a temporary fad. Investing in memecoins may be a quick way to make money, but it can also lead to significant losses if one lacks the knowledge and investment skills required to assess the risks.
 

haioi29fjhgu

New member
What are the potential risks one may face if they don't invest properly in memecoins?
 

taunt28hg

New member
I agree with the author's viewpoint on exercising caution when investing in memecoins. With their volatile nature and high risks, newcomers to the market should carefully consider before investing in memecoins to avoid losing their entire investment.
 

quangviet94

Member
Do you invest in memecoin, don't share it with everyone, it's all a loss:sleep:
In fact, it only earns money from newbies, does not know how to manage capital, investing all of its money in meme coin is a big mistake.
 

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