The upward trend of the currency circle remains unchanged, and the callback is an opportunity

Almost all investment markets fell sharply on August 11. First, the domestic A-share Shanghai Composite Index fell by 1.5%; then the precious metals market gold and silver fell sharply, gold fell by nearly $100 from a high of around $2050 to $1911 at the time of writing; silver fell from nearly $29 to Around $24. This trend has swept through the currency circle, and it has pulled down almost all the recent popular currencies.

Faced with this situation, the market generally has a pessimistic argument, thinking that all these current hot spots are just a momentary limelight, and the current sharp drop can be regarded as debunking these hot spots.

But in my opinion, this is a completely normal market correction and does not change the current trend.

I have repeatedly emphasized that once a trend is formed, it will not change easily. If the trend is to be changed, the core factors must have changed.

The current trend of all investment markets is essentially affected by a core factor-that is, the Fed's loose policy. As long as this loose policy does not change, the current long-term trend of all investment markets will not change.

With the epidemic raging and the economy sluggish, it is impossible for any central bank in the world, including the Federal Reserve, to change its easing strategy in the short term. This determines that the driving force of the current investment market will not change in the short term. Although this drive may seem unhealthy and abnormal to many people, it is the drive.

So the current dip is just a correction, not a reversal of trend.

Specific to each investment market: For A-shares, I still think it is the early stage of a bull market, and the market is cleaning up, trying to force retail investors to hand over their chips; The gains accumulated over this period of time can be used as a profit-making understanding to accumulate strength for the next stage of rise; for the digital currency market, it is a bit complicated, so we have to look at it separately, and I will focus on sharing it below.

This round of surge in the digital currency market has two obvious characteristics: First, mainstream currencies, especially those led by Ethereum and Bitcoin, first started to lead the rise in the previous stage, and then various tokens in the DeFi ecosystem exploded; The second is that it is obvious that various DeFi tokens have gone out of an incomprehensible market, which has caused all investors to have the emotion of FOMO, the "fear of missing out".

Obviously, all kinds of DeFi tokens are more affected by the general market decline. For Bitcoin and Ethereum, the decline is less than 10%, so we don't have to worry about minor adjustments to mainstream currencies. In DeFi tokens, I divide them into DEX and non-DEX.

For non-DEX tokens, I think that the increase in the previous period is indeed not commensurate with their own value: especially the oracle project, although I think it is just needed, but its current usage scenarios and implementation are very low. It is difficult to support its current currency price; it will take time to test what role other tokens such as liquidity mining will play in the market in the future, and the increase in the previous period was more due to the speculative atmosphere.

For DEX tokens, I think that despite the callback, they still have no damage to their stamina. They have greater potential than all other non-DEX tokens in terms of landing applications and long-term development.

In my opinion, DEX is the sector that has benefited the most from this round of hotspots; it is also the sector that once again blazes a trail in various subdivisions of the blockchain to prove the value of blockchain applications; most importantly, DEX will also be this round of hotspots As long as the potential and attractiveness of DEX is still there, it will continue to drive this round of hot spots and drive other sectors to continue to move forward.

It is still early days before the potential of DEX is fully realized, because each DEX team is still optimizing its own technology and promoting technological change, which is the fundamental driving force for DEX to continue to move forward; secondly, the most popular Uniswap has not yet issued coins , this expectation will always hold everyone's appetite.

Therefore, every pullback at the moment is an opportunity, and we can stay in the market and continue to participate in the battle with peace of mind.