Opportunities Analysis during the Cryptocurrency Market Adjustment Period

Cryptocurrency markets have experienced a notable correction this week, with altcoin markets taking a beating while Bitcoin and Ethereum have remained relatively stable. Market analysts generally believe that the recovery of the altcoin market may take some time.

In the past seven days, the overall market has fallen by more than 5%, resulting in the withdrawal of US$150 billion in funds. In particular, digital assets with low market capitalization have suffered serious losses.

Jamie Coutts, principal analyst at Real Vision, pointed out that the downward trend in small-cap crypto assets has continued for several months since March.

He mentioned in a June 13 article on

No sign of copycat season

Coutts further analyzed the performance of different industries and found that since March, infrastructure and application assets have fallen by approximately 40%, and smart contracts, currencies, and DeFi assets have fallen by more than 30%. He suggested that if this is a regular mid-term adjustment, some opportunities may emerge for small and mid-cap assets after the market stabilizes.

Bankless noted in a June 13 report that the altcoin market continues to experience significant sell-offs despite evidence that U.S. inflation is waning. The report also mentioned that 70 of the top 100 coins fell by more than 10% this week, and 20 of them fell by more than 20%. Overall, the cryptocurrency market as a whole has fallen 11.5% since mid-March when the total market capitalization reached $2.89 trillion.

Alex, Senior Market Analyst at FxPro In an email sent to investors on June 14, Kuptsikevich predicted that as the demand for risky assets decreases, the market will see a continuous downward movement of single-day price highs.

Nonetheless, the market still has some support at the $2.42 trillion level, as shown by the stabilization seen between May 17 and 20.

The pain period of altcoins is also normal

Market analyst "Jelle" observed that although Bitcoin is only 9% away from its all-time high, altcoins have generally fallen by about 70%, which he believes is a normal market adjustment. He expects altcoins to rebound strongly once Bitcoin enters the price discovery phase.

However, technical analyst “Moustache” is more cautious about the future of altcoins, pointing out that altcoins have been in a downward trend since 2021. Regardless, unless Bitcoin can break out of the range-bound volatility it has seen since early March, the altcoin market is unlikely to see a turnaround.

To sum up, although the cryptocurrency market is currently facing a correction, analysts believe that this may provide opportunities for future market recovery and altcoin rebound. Investors should pay close attention to market dynamics, reasonably assess risks, and seize opportunities.

Conclusion:

After an in-depth analysis of the recent volatility in the cryptocurrency market, we can see that the market is undergoing a profound correction. Although altcoins are currently facing a cold winter, and Bitcoin and Ethereum have shown strong resilience, market uncertainty requires investors to remain vigilant. The analysts' views are a reminder that even in market downturns, there are potential opportunities. As the demand for risky assets decreases and market support levels are explored, investors should pay more attention to market fundamentals and macroeconomic indicators in order to seize the opportunity for a rebound when the market stabilizes.

In addition, the decline of altcoins is not without warning, but is part of the market's cyclical adjustment. Historical experience shows that market downturns are often accompanied by innovation and re-evaluation of value. Therefore, investors should consider the market's long-term trends and underlying growth drivers when evaluating investment decisions. At the same time, as the market matures, we look forward to seeing a more robust and diversified cryptocurrency ecosystem, bringing new opportunities to investors.

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