98 of Shanzhai Coins Have Reached Their Peak This Cycle Avoid Blindly Bottom Fishing Too Early

CoinWorld News Report:
The cryptocurrency market continues to decline, with Bitcoin falling below $54,500 today, a drop of nearly 30% from its all-time high of nearly $74,000. Ethereum has also dropped below $2,850, and many altcoins have hit new lows. In light of this, Andrew Kang, Co-founder and Partner of Mechanism Capital, expressed his thoughts today:
The most common mistake in the cryptocurrency market is buying too early when the trend is shifting from bullish to bearish. The adjustments after a major market structure collapse are often deeper and longer than most people expect. Instead of buying when Bitcoin drops 10% from its high point, it is better to buy in the next cycle when the market is in general liquidation, most people are exiting the market, and there are doubts about the permanent existence of cryptocurrencies.
Andrew Kang also believes that over 98% of altcoins have already reached their peak in this cycle, with only a few possibly reaching new highs in the fourth quarter of 2024 or the first quarter of 2025. He believes that Bitcoin is currently transitioning into a supercycle asset, retaining characteristics from previous cycles and becoming a mature macro asset with increasing accessibility.
Regarding the question about meme coins, Andrew Kang responded that meme coins may dominate among the altcoins that have a chance to reach new highs. However, due to the thousands of meme coins available, investment needs to be highly selective.
How should we view the future trend of the cryptocurrency market?
Certainly, while seizing opportunities, we must also remain vigilant about market risks. The cryptocurrency market has always been highly volatile, with market conditions changing rapidly. Any negative news can potentially trigger panic selling. Therefore, risk control should always be the top priority in investment. As famous investor Paul Tudor Jones said, “If a losing position is causing you emotional distress, simply exit, because you will always have the opportunity to re-enter the trade.” In unfavorable market conditions, we should learn to cut losses decisively, patiently wait for the next opportunity, and avoid blindly holding on with a mentality of luck.
Lastly, for ordinary investors, understanding long-term value may be more important than pursuing short-term profits. We should learn to identify and assess projects that truly have innovative value and future prospects, rather than blindly chasing so-called “hotspots.” Only when we have sufficient understanding and confidence in a project can we make rational investment decisions.
In conclusion, opportunities and challenges coexist in the cryptocurrency market in the second half of 2024. Factors such as macroeconomic conditions, regulatory policies, and technological innovations will have significant impacts on the market. As investors, we should learn to conduct comprehensive analysis, make prudent decisions, and balance seizing opportunities with strict risk control.
Lastly, there are many details that have not been included, such as specific opportunities and decisions, which cannot be summarized in one article.
If you want to learn more about the cryptocurrency industry and stay updated with the latest information, feel free to consult me. We have the most professional cryptocurrency community that publishes daily market analysis and recommends high-quality potential coins.