The world is bustling, all for profit; the world is bustling, all for profit to go! Hello everyone, I am your friend Lao Cui, focusing on digital currency market analysis, striving to convey the most valuable market information to the vast number of coin friends. I welcome everyone's attention and likes, and reject any market smoke screens!
Today, I will explain the impact of this round of bull market on small coins; many users are all-in waiting for the arrival of the small coin bull market. This mindset is basically still stuck in before 2021. With the emergence of domestic regulations and the push from the U.S., the financial landscape of the coin circle has long changed, but many friends are unwilling to face this fact. You can also compare it with previous bull markets; the launch and increase of small coins always happened before Bitcoin. As long as Bitcoin continues to grow, small coins will also multiply in value. The reason behind this is simple: many gray industries are waiting for the bull market in the coin circle to achieve stable money laundering. Due to Trump's interference, the gray industry can legally cash out, which is even less friendly to small coins. More and more gray industries prefer to cash out through stablecoins. Once this channel is resolved, small coins can only rely on retail investors for support. Everyone should also be clear that the U.S. is pushing for spot ETFs to drive out inferior coins; only the coins that pass will have sustainable investment value in the future. The eliminated coins are likely to complete the final wave of harvesting while Trump is in office.
Previously, I talked about the mechanisms of POW and POS, and many friends also mentioned the destruction mechanism in the coin circle, thinking that as long as there is a destruction mechanism, POS has the upper hand. Recently, the coins that have become popular almost all implement this mechanism, giving small coin holders strong confidence. Let me briefly explain that the so-called destruction mechanism is merely putting what you consider excess coins into a cold wallet and then physically destroying them, making the hard drive forever inaccessible. However, as long as it is human-controlled, it cannot escape the essence of human nature. There are many opportunities for manipulation in between, and whether the destruction is real, neither you nor I can know. But looking at history, even under the traditional feudal system, Ru kiln porcelain could still circulate out of the palace, which was still under a death penalty mechanism; when interests are at stake, mistakes are inevitable. I hope everyone does not blindly believe in the so-called destruction mechanism. Moreover, the biggest problem is the unlimited issuance, which also tests human nature. The U.S. dollar was initially like this, but now, after such a long period of fluctuation, its devaluation is very obvious. This is still considered the slowest depreciating currency among traditional currencies. Even if inflation is artificially controlled, it cannot be avoided. As long as the coins using the POS mechanism are concerned, the upper limit is completely controllable, and the lower limit can also be manipulated, which is essentially no different from traditional currencies; it excels in stability. As long as you do not think about doubling your investment, you can invest in such coins, and the returns will definitely exceed those of traditional financial markets. This type of coin is suitable for traditional stock investors who have previously invested in U.S. stocks and old A shares and have idle funds to try Ethereum!
After discussing DOGE yesterday, many small coin users asked Lao Cui how to view their coins. I would like to clarify that what I said about DOGE is that it is not strong compared to previous trends, but that does not mean DOGE has not increased. I still hope everyone can view the statements objectively. Regarding investment value, everyone has their own measurement standards. Investing in small coins is merely because you believe they still have investment value. However, under the current financial environment, the previous increases will not occur, whether it is DOGE, FIL, or SHIB. These coins are ones you have witnessed or experienced their increases, where doubling or even tripling in a day is a common occurrence. But everyone should measure these coins with the previous perspective. I can directly give you the answer: it is impossible! If small coins want to double, there are currently only two possibilities: one is to pass the current review and meet the U.S. ETF listing standards; the other is to issue new coins, temporarily raising their height in a way that represents harvesting retail investors, like Trump coin. Currently, there are only four coins that have been submitted and have the highest probability of passing: SOL, Litecoin, XRP, and Dogecoin, with the special coin being Trump coin. Most other coins have not even made the submission for review, so you need to be cautious with these types of coins!
As long as the probability of listing doubles, the impact will definitely not be greater than that of Bitcoin and Ethereum. At least once listed, it will not cause losses in the short term. However, you also need to consider the risks of listing; the current listing is different from last year. The current listing coincides with the birth of stablecoins, which means the lack of funding from the gray industry. The benefit is that the interest rate cut happens to coincide with their listing, which may also lead to some funds flowing into the trend of these four coins. There are also previous reference cases; the fluctuations of Bitcoin and Ethereum are almost the same as their listing. We cannot expect too much; the push from stablecoins and the capital from interest rate cuts mostly enter the Bitcoin market. The higher the price of Bitcoin, the greater the impact on small coins. This can be seen as a siphoning effect; after all, the pie of the coin circle is so small compared to U.S. stocks and old A shares. Moreover, after the issuance of stablecoins, large enterprises and companies are more likely to attract foreign capital to invest in their stablecoins, which will not let too much capital flow out. This is Trump's ultimate goal: to let the gray industry return to U.S. capital through stablecoins attached to large enterprises, strengthening enterprises and enriching the national treasury. It can be said to be a threefold achievement, and this is still a bright strategy; the gray industry has only this path to choose!
At the same time, I need to clarify a point with everyone. Many friends, after listening to my discussion on the issuance of stablecoins, do not understand why it gives confidence to small coin holders. I will repeat: the introduction of stablecoins is a positive message for Bitcoin, but for small coins, it is not a positive message but more of a competitive relationship. The holding groups of small coins and stablecoins have commonalities; many gray industry personnel will use small coins in the coin circle for money laundering, including the teams that issue small coins, many of whose purposes are not pure. This type of personnel will exit the small coin circle after the appearance of stablecoins. How much impact this will have, I cannot predict at the moment; there is no historical data for reference, and speaking without basis is not my style. However, you can see clues from the recent trends of small coins. Bitcoin has not even dropped below 100,000, yet many small coins have already fallen to the positions before the bull market started. I hope everyone does not have faith in small coins. The aforementioned coins that are about to be listed can be considered for investment, while for other coins, try to reduce your positions.
Lao Cui summarizes: Regarding the trend of Bitcoin, I almost finished predicting the trend for June at the end of May, and the overall trend remains the same as we discussed earlier. As long as there is no strong strategic interference, it will basically revolve around the bearish trend. Therefore, I will not explain the trend in the recent period. If you want to see it, you can refer to my article from the end of May. Unless the recent situation can break the range I mentioned earlier, I will not discuss the trend. I have already reminded everyone about the layout of short positions; spot users do not need to be anxious. Enduring these two months is the season for your harvest. This year's prediction for bullish gains coincides with autumn, after the golden September and silver October. For small coin users, if you want to stop losses or break even, you definitely need to have enough courage to find the right moment to exit. If you cannot grasp the timing, you can directly message me, and I will give you some advice on how to choose. Ultimately, it is still a question you need to think about. For those doing short positions, quickly take advantage of this trend to clear your positions. First, do not think about making a profit; being able to break even is already a blessing. After exiting, control your hands and desires, and wait for the bull market to start before discussing. Try to view contracts from the perspective of spot trading! For users who have followed me into short positions, wait for my signal. Prepare in the next few days, and I will notify everyone when to exit!
Original creation by WeChat public account: Lao Cui Talks About Coins. For assistance, you can contact directly.
Lao Cui's message: Investing is like playing chess; a master can see five, seven, or even more than ten moves ahead, while a novice can only see two or three moves. The master considers the overall situation and the big trend, not focusing on one piece or one position, aiming for the ultimate victory. The novice, on the other hand, fights for every inch of land, frequently switching between long and short positions, only competing for short-term gains, resulting in frequent entrapment.
This material is for learning reference only and does not constitute trading advice. Trading based on this is at your own risk!
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
