ETH has finally reached $4,000, which makes classical coins in the recent market by the “animal coin” “low-cost coin” rampant hard to breathe, also can feel the market of many old users are still more excited about this.
The current situation of bitcoin and ethereum and the surge of low-priced coins actually reflect two views in the circle. Bitcoin’s rise from last year to this year has nothing to do with the institutional support behind it. Even traditional financial institutions like Goldman Sachs, which were originally dismissive of bitcoin, have started a bitcoin business, plus buying from many other companies and corporations is also very strong. And the same is true for Ether. According to a tweet by CryptoQuant CEO Ki Young Ju, it is US (institutional) investors who are behind this ETH parabolic movement (up).
This is something that we have analyzed previously, more and more Ether ETH are coming through the application and more and more institutions are starting to favor Ether. So the pro-rising factors for bitcoin and ethereum are actually relatively consistent. But in the view of retail investors, this is not a good phenomenon, whether it is Bitcoin or Ether, at first it was known by everyone in the name of decentralization against traditional financial capital, and therefore attracted a lot of supporters, but now these two coins are back in the hands of traditional financial giants, still controlled by these rich people, then the principles that had been upheld in the past still exist?
So everyone has supported those retail investors can afford to buy cheap coins, which in the middle of Musk’s lead shout order function is not small, this is also a bit like retail investors alternative rebellion, it is also the current market for bitcoin delayed rise, and the main view of the low-cost coin rampant. We think this does account for some of the reasons, but it’s too idealistic, and reality is often not so idealistic. Dogcoin attracted a large wave of newcomers who thought Bitcoin and ETH were too expensive, and with Dogcoin as a precedent, the perception that “lower priced coins can go up more” spread among the newcomer market, so both Shib and Pig coins attracted most of the trust. The old users were able to keep their sanity at first, but later on, as the Fomo sentiment exploded, they also started to scramble to enter the market, and they even started to look for other low-priced coins, triggering a wave of low-priced coins.
But we should also think carefully, “not low price is good” in the coin circle is almost common knowledge, old users know that in the past few years, the vast majority of low-priced coins can not avoid the end of zero, now this idea is trusted to bring back to the coin circle, can it last? We think this sentiment-oriented consensus is temporary, and as the sentiment gradually recedes, the market will return to normal. And I don’t know if you have noticed that with the recent outbreak of Dogcoin and Shib, more and more low-priced coins are being developed and emulated, but the principle of these low-priced coins is not the same as Dogcoin and Shib. This is not a good thing for the cryptocurrency world. So, guys should also be aware that those who get involved at the beginning may get to eat the crab, but those who get involved later will likely be the ones who take over.
Back to the market, bitcoin continued to surge higher after the opening today, once up to $59,500, but then also ushered in a retreat, currently temporarily down below $59,000, you should be able to see that this wave of bitcoin is driven up by ETH. The current problem with bitcoin is rather obvious, although the overall is oscillating upward, but each time the position of the new former high is just a drop, it is difficult to continue to take advantage of the momentum upward when the new high, which is also an indication that the current bitcoin itself here is not much activity, the main activity is still in the ethereum and other coins.
This is also a matter of capital preference and user preference, now bitcoin is basically institutional domination, the retail side either has animal coins, or ethereum and mainstream coins, who are not willing to return to bitcoin now, after all is the existing return is too low, and the institutional side has not much buying news recently, it is difficult to have a very positive promotion effect on bitcoin. The company’s main focus is on the development of a new product, which is a new product that can be used in the market. The ETH: The current trend is still strong. When the dog coin was sniped yesterday, the Ether successfully seized the opportunity to attract in funds, so that the coin price made a further breakthrough, today is basically in the case of other coins with mediocre performance, but also maintain a fairly strong trend, depending on when this breath is loosened, is currently continue to look high.
The first two days we let you continue to pay attention to OKB and HT, the opening today continued to usher in the outbreak, OK is reported to be Okexchain ecological construction officially opened, ushered in such a wave of good up a little is not surprising, but these platform coins, especially OKB, short-term explosive power is not worried, is always the problem of sustainability, take can take, is a sign of pullback can be withdrawn, suitable for swing bar, do not rule out Okchain ecological construction will be improved, but before that or historical trend reference-based.
DeFi: the recent performance is average, and the cycle rotation, the retracement of the time can be involved, the next wave of outbreak is only a matter of time.
DOT: From the plate, after the wave bottomed out on April 23rd has actually been going up, just not much compared to the other coins that broke out, continue to pay attention to it.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/eth-breaks-through-4000/
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