Huge bite, ETH breaks through $4,000

ETH has finally reached $4,000, which makes classical coins breathe a sigh of relief in the market that has been rampant by "animal coins" and "low-priced coins" recently, and it can also be felt that many old users in the market are quite excited about this.

The current situation of Bitcoin and Ethereum and the skyrocketing price of low-priced coins actually reflect two views in the circle.

The rise of Bitcoin from last year to this year is inseparable from the support of the institutions behind it. Even Goldman Sachs, a traditional financial institution that originally dismissed Bitcoin, has begun to carry out Bitcoin business. The disk is also very powerful.

And so is Ethereum.

According to a tweet by CryptoQuant CEO Ki Young Ju, US (institutional) investors are behind this ETH parabolic movement (up).

We have also analyzed this point before. More and more Ethereum ETH are passing the application, and more and more institutions are beginning to favor Ethereum.

Therefore, the driving factors of Bitcoin and Ethereum are actually more consistent.

But in the eyes of retail investors, this is not a good phenomenon. Whether it is Bitcoin or Ethereum, it was known to everyone in the name of decentralization against traditional financial capital, which has attracted many supporters. The two currencies have returned to the hands of traditional financial giants and are still controlled by these rich people. Does the principle that was upheld in the past still exist?

So everyone has supported the cheap currencies that retail investors can afford. Among them, Musk’s leading call function is not small. This is also a bit like an alternative resistance of retail investors. This is why the current market is slow to rise to Bitcoin. And the main point of view that low-priced coins are rampant.

We think this does account for part of the reason, but it's too idealistic, and reality is often not so idealistic.

The specific reason has to go back to Dogecoin. Dogecoin has attracted a large wave of newcomers to enter the market. These newcomers think that Bitcoin and ETH are too expensive, but with the experience of Dogecoin, "low-priced coins can rise more" Opinion spreads in the newcomer market, so both Shib and Pig coins have attracted most of the trust in the market.

Although the old users were able to maintain their rationality at the beginning, with the outbreak of Fomo emotions later, they also began to scramble to enter the market. Everyone even began to look for other low-priced coins, which triggered a wave of low-priced coins.

But everyone should think about it carefully, "It's not that the price is low, but it's good" is almost common sense in the currency circle. Old users know that in the past few years, most of the low-priced coins could not avoid the end of returning to zero. , now that this idea is trusted and brought back to the currency circle again, can it last?

We believe that this emotional consensus is temporary, and as the sentiment gradually fades, the market will return to normal.

And I don’t know if you have noticed that with the recent explosion of Dogecoin and Shib, more and more low-priced coins have begun to be developed and imitated, and the principles of these low-priced coins are fundamentally different from those of Dogecoin and Shib. , Most of their publicity points are that this currency is cheap enough, and they confuse these currencies with Dogecoin, Shib, etc. by means of fishing in troubled waters, which is really not a good thing for the currency circle.

Therefore, friends should also pay attention, those who participate at the beginning may be able to eat crabs, but those who intervene later may become takers.

Back to the market, Bitcoin continued to rise after the market opened today. It once reached $59,500, but then it also ushered in a fall, and it has temporarily fallen below $59,000. You should be able to see that this wave of Bitcoin has been ETH led the rise.

The current problem with Bitcoin is more obvious. Although the overall situation is oscillating upwards, the previous high position is only lost every time it is refreshed. What activity, the main activity is still in Ethereum and other currencies.

This is also a matter of capital preference and user preferences. Now Bitcoin is basically dominated by institutions. Retail investors either have animal coins, or Ethereum and mainstream coins. No one is willing to return to Bitcoin now. After all, The existing rate of return is too low, and there is not much buying news from institutions in the near future, so it is difficult to have a very positive promotion effect on Bitcoin.

At present, Bitcoin has to continue to fluctuate. Unless it can stand firm at 59,500 US dollars and let everyone see the hope of hitting 60,000 US dollars, it is expected to regain popularity. The market performance is also good, and the rate of return is much stronger than that of BTC.

ETH: In addition to being strong at present, it is still strong. When Dogecoin was attacked yesterday, Ethereum successfully seized the opportunity and attracted funds, which made the currency price make a further breakthrough. Today, it is basically in other currencies. In the case of mediocre performance, it can still maintain a fairly strong trend. It depends on when this breath is relieved. At present, we continue to look at the high position.

Platform currency: Two days ago, we asked everyone to continue to pay attention to OKB and HT. Today’s opening continued to usher in an explosion. It is reported that OK’s ecological construction of OEC has officially started. It is not surprising that there is such a wave of good news. A platform currency, especially OKB, is not worried about the short-term explosive power, but the sustainability is always a problem. You can hold it, and you can withdraw it if there is a sign of a callback. Changes, but before that, the historical trend is still the main reference.

DeFi: The recent performance is so-so, and it is a matter of cycle rotation. You can intervene when there is a callback. The next wave of outbreaks is only a matter of time.

DOT: Judging from the market, it has actually been rising since the wave bottomed out on April 23, but it has not risen much compared to other explosive currencies. Let’s continue to pay attention.