2020 Cryptocurrency Market Concept Quotes Opportunities
June is coming to an end, and half of 2020 is about to pass. Standing at the juncture of half a year, ask yourself: How have you gained in the currency circle transactions in the past six months?
We have experienced the halving market at the beginning of the year, the oversold rebound after the 3.12 waterfall, and the upsurge of the DeFi concept, but in fact the market is becoming more and more difficult to grasp compared with previous years. In the past, opportunities can be seen everywhere, and you can get a big profit if you grab it just once, but now it is a big wave, and the opportunities are fleeting, and it is difficult to have a chance for a general rise in the market.
Changes in the market have put forward new requirements and high standards for our investment transactions, which means that the previous "chasing ups and downs" and brainless stud operations have lost their usefulness, and the market has become more and more cruel.
The biggest change in the encryption market this year is: there are only opportunities for concept market. Only by keeping up with the trend and following the hot spots and concept outlets of the market can it be possible to seize potential opportunities.
1. Halved market
The halving market officially started at the beginning of January. BTC, BCH, BSV, DASH, ZEC and many other currencies have been halved together, forming a wave of halving. The publicity and promotion about halving in the market are becoming more and more frequent, and the price of the currency is rising simultaneously. Investors' expectations for the halving are intensified under the hype of the concept, and the halving market is officially fermented. Just like the ICO craze and the public chain mainnet launch craze in the past few years, once the concept is deeply rooted in the hearts of investors, it will be a big opportunity for a rebound in the market.
However, BSV, BCH, and ETC have increased several times in a short period of time, which completely ignited the market and allowed the market to ferment rapidly. Investors frantically bought to chase higher, borrowed USDT from the system, and increased leverage operations. Bitcoin ushered in a wave The main Shenglang (rebound) market.
Although in the end due to the risk of high leverage, the impact of the external epidemic and the global financial market crisis, the halving market fell short, but it also confirmed the charm of the concept market.
2. DeFi concept market
DeFi is a relatively popular concept in 2019, but because many DeFi projects are in the stage of concept verification and product development, and the user base is relatively small, the concept has not been hyped although it is relatively hot.
From 2019 to 2020, the overall market was in a bearish market, and the essence of altcoin projects, which were “golden and jaded” faded. Investors gradually abandoned altcoins and looked for new investment targets other than mainstream currencies. The small projects of DeFi concept The pragmatic style of being public and gradually landing has become a hot spot pursued by some people.
The concept of DeFi, which was originally very small, has seen a steady rise in currency prices under the entry of investors, and achieved a good increase in a short period of time, especially after the 3.12 market waterfall, it performed well, outperforming 99% of counterfeit currencies .
At this stage, with the hype of DeFi projects such as Synthetix and Compand, DeFi markets such as decentralized exchanges (Dex), lending, and open financial derivatives are becoming more and more prosperous, with a considerable amount of funds, attracting more and more The more funds and user attention.
From the point of view of the development process of the DeFi concept from the minority to the mainstream crypto group users, the change in the fundamentals of the project itself is the fundamental driving factor. Compared with the pure hype of the altcoin, the DeFi project product from concept to implementation, the amount of funds From small to large, investors can see the real value and the prospect of future development.
At this stage, the token prices of DeFi concept projects are all inflated, and the short-term increase is huge, and there is a huge risk of retracement. It is not recommended to enter at this time. Instead, wait until the second half of the year, after Bitcoin has established a big rebound, and at an appropriate price, consider these DeFi concept projects with real value support.
3. The investment boom triggered by IPFS
IPFS is recognized as the star project of blockchain 3.0, which may promote IPFS to become a global decentralized storage infrastructure. But under the current overheated promotion, we need to know a few points:
A: Decentralized storage is not more advanced than centralized storage at this stage. On the contrary, it has many restrictions and cannot meet the needs of efficient storage; no matter how advanced its technology is, a technology has been proposed from theory to pilot implementation, and then to large-scale Commercial adoption will take more than 3-5 years, or even longer, during which there will be many difficulties and challenges. Therefore, investors need to keep calm under the short-term hot hype, and it is not recommended to chase blindly.
B: Whether the main network can be successfully launched is the biggest variable. According to the roadmap of the IPFS project, the main network should be launched in 2018, but it was later postponed to June 2019, and the ticket was skipped again in June 2019, and the main network was postponed. Although the testnet and test mining are in full swing this year, it is still unknown whether the mainnet will be officially launched in July-August.
C: The most profitable IPFS hype is actually mining machine manufacturers. They have been hyping mining machines since 2018. In the past few years, at least hundreds of billions of funds have been collected, and retail investors who invest in IPFS mining machines basically lose their money. It can be said that there are too many scams surrounding IPFS mining machines, the main network has not yet been officially launched, and the rules for determining mining efficiency and computing power are not clear, and the uncertainty is too great. Even if it can successfully launch the mainnet and start mining, there are too many people entering the market, and it is still unknown whether it will be able to make money as fast as it is advertised.
However, after the halving of BTC, the mining machine industry is facing a new round of adjustment cycle of survival of the fittest. There are many eliminated miners participating in IPFS mining. The recent IPFS upsurge is caused by this group of people. Next, there will be It may be due to the explosion of IPFS, which has caused fluctuations in the currency of decentralized storage. If the IPFS mainnet is successfully launched, there is a probability that there will be a market similar to the concept of DeFI.
At this stage, you can give priority to storage-related projects, including Fil, SC, Stroj, BTT, HOT (Holo), MAID, Gbyte, BLZ, LAMB, etc., but it is not recommended to intervene in advance, but to officially launch on the IPFS mainnet , After the relevant currency has taken some action (the volume can be enlarged synchronously, and a technical rebound signal appears), follow up in real time.
4、ETH 2.0
ETH 2.0 is the most important and influential event in 2020 except for the halving.
Although the launch of Ethereum 2.0 includes three phases: phase 0, phase 1 and phase 2, it lasts for several years. What will be realized this year is phase 0, mainly the construction of the "beacon chain", which will transform the consensus mechanism from POW to POS + POW hybrid operation.
However, because ETH is the only public chain project that has achieved so far, it won the public chain hegemony competition in the past few years, and has the most extensive user base, developer support and community ecological construction besides Bitcoin. The concept of DeFi has been hyped. , It also proves the huge economic value of the ETH network from the side.
From the perspective of market value, ETH is a well-deserved second, and its own price fluctuations can affect the entire cryptocurrency market. With the advancement of ETH 2.0, not only will there be a continuous rise in popularity, but also a strong demand for ETH. The internal appreciation logic coupled with the rise in demand, the performance of ETH in the second half of this year is worth looking forward to. Even when the trend of the BTC market has stagnated, ETH can lead the market to make a breakthrough, so it is worthy of a mid-to-long-term layout.
Back to the market, the downward trend that started at 3:00 pm yesterday opened the gate for the market to fall. BTC fell below the support of 9600, 9500, 9400, 9300, and 9200 US dollars in a row. The pattern of rebound in recent days was completely terminated. Door market reappears. This is the result of the volatility of the short-term market, which fluctuates in the wide range of 8,500-10,000 US dollars. Recently, it has been repeatedly mentioned that operations are mainly based on wait-and-see, small positions, buying low and selling high, and avoiding risks, that is the case.
During the day, we will focus on whether the defense line of 9,000 US dollars can effectively stop the decline and stabilize. When trading sideways above this point, the market will generally fluctuate and there is still a chance to rebound. Once it falls below, the probability of continued downward risk caused by panic in market sentiment will increase.
The daily line level is a typical picture door market in the broader market. This drop officially fell below the support of the MA60 moving average. An effective counterattack has caused the price of the currency to rise, and the market may face the risk of further decline.
Another thing to pay attention to is the trend of US stocks. Last night, the hourly line level had already stopped falling at 9,300 US dollars, but because the US stocks fell again, the currency market followed the decline and caused a second dip. The recent high degree of synchronization between the BTC market and the US stock market is worthy of vigilance.
And my article the day before yesterday "In the cryptocurrency market in June, three major risks cannot be ignoredThe three major risks mentioned in ", especially the risk that a large number of contracts in the bitcoin options market will expire on June 26, may have a certain impact on the market. Start trading again in the month.
