Metrics Ventures: The market has provided the answer; quietly accompanying the industry's growth is the best strategy
Author: Metrics Ventures
Metrics Ventures November Market Observation Guide for the secondary fund in the crypto market:
The prolonged disordered consolidation in the market, lasting for 7 months, has finally reached its end. The price behavior before and after the election clearly illustrates the liquidity dilemma emphasized repeatedly in previous months and the growing pricing power outside the market. The trading behavior of the past cycle is increasingly constrained by the changes in the broader environment, and the market has provided all participants with a clear answer.
From the market perspective, the various operations of altcoins are constrained by a significant lack of liquidity, resulting in failed price actions. This month, the market cap limit for fully circulating altcoins is around 1 billion USD, while the loss of price anchoring for new coins and the rapid rotation in the Meme sector further confirm the issues with capital flow in the market.
The strategy is no longer a cliché; whether it’s the future FOMC or geopolitical factors, they are not the key factors determining the overall trend. The tide is flowing, and the best strategy is to quietly accompany the growth of the industry.
Overview and Commentary on Market Trends:
As of the beginning of the month when I started writing, the most significant difference from the previous monthly report is:
① The unexpected outcome of the election has greatly alleviated risk concerns, leading Bitcoin to break through new highs with increased volume. Although time is still needed to confirm the breakout, any technical perspective should eliminate previous worries.
② The four major geopolitical issues, the long-term rise in U.S. Treasury yields, excessive Trump trading, and liquidity risks that have overshadowed this month have now been reduced by half. Due to the unexpectedly strong government, the market may provide various assets with an optimistic risk premium for some time.
③ Unfortunately, there is still no clear improvement in liquidity in the market. This breakout is vastly different in momentum and sentiment compared to the breakout at the beginning of the year. Although many VC coins are at the end of the March consolidation cycle, it seems that a large-scale market trend cannot be compared to previous rounds.
In the long run, the bell of the new era has already rung. Perhaps insights on macro, political, military, and economic issues vary from person to person, but the operational model of the reservoir of funds and its future positioning are already clear. It needs to be reiterated that the change in the path of capital flow has led to a weakening correlation between BTC and market altcoins. The so-called comprehensive altcoin season, under the backdrop of high penetration, is left with only two paths: ultra-loose liquidity and innovative gameplay.
This monthly report is particularly brief, with the true meaning being: Ride the wave, trade trends, with a bright heart, what more is there to say.
