Market correction and background factors
In the process of market development, it is normal to have a correction. There is no need to focus too much on Powell's hawkish remarks. Powell made a hawkish speech last night. Under the influence of this, the US stock market is under great pressure, and the three major indexes are showing a downward trend. Bitcoin also ushered in a reasonable correction.
At the same time, rumors began to emerge in the market that there might not be a rate cut in December, which also made investors question whether the market would enter a bear market. Let's analyze it in depth below.
Market Overview
In this wave of market conditions, institutional investors and retail investors are moving forward in parallel. On the one hand, many Wall Street institutions have recently bought hundreds of millions of dollars of Bitcoin every day. Driven by strong financial power, the price of Bitcoin has continued to rise, continuously breaking historical highs, and is now close to breaking through the important price threshold of $100,000.
On the other hand, retail investors are keen on speculating on MEME coins, especially in the altcoin market, where retail investors are often easily "cut off" by institutional investors. In view of this situation, many retail investors think it is better to directly invest in the MEME coin market to take a chance. After all, under the influence of Musk and Trump, coins such as (Dogecoin), SHIB (Shiba Inu Coin), etc. have once exceeded the market value of 10 billion US dollars, showing a strong market influence.
Moreover, Binance has achieved remarkable success in its layout of ACT and $PNUT, which fully proves that listing currencies on Binance is not the end, but means the beginning of a new stage of development. They have achieved amazing growth in a short period of time and attracted a lot of market attention.
Market characteristics
This wave of market conditions has also led to a significant change in the way retail investors think. After weighing the pros and cons, many retail investors feel that it is better to transfer funds to MEME coins instead of continuing to invest in traditional altcoins that are suffering heavy losses. The performance of MEME coins in the market is truly amazing. Currently, the market value of many MEME coins has exceeded the market value of many leading projects in the traditional altcoin field. This phenomenon has also shocked institutional investors. According to the data, the venture capital funds of the crypto industry in the third quarter were only US$1.7 billion. However, a successful MEME coin project can create a very impressive market value growth in just a few days, highlighting the strong money-making ability and market explosiveness of MEME coins.
Future Trends
The current craze for MEME coins has, to a certain extent, made the influence of the SOL chain surpass that of ETH. The ETH Foundation's selling during the price surge triggered widespread discussion in the market, and many investors believed that SOL might become a new mainstream platform. Especially under the strong promotion of the MEME market, SOL's market performance has become more and more prominent, and its advantages have become more and more obvious. With the emergence of more and more super MEME coins, the wealth effect and market heat are superimposed on each other, and MEME coins are expected to become one of the core melodies of this round of bull market. Especially with the help of the SOL chain, the heat of the entire market is expected to continue to heat up, further expanding the market influence and development space of MEME coins.
In general, the current craze caused by MEME coins has similarities with the DeFi wave in the past bull market. It is very likely to run through the entire bull market cycle and become the dominant force in market development, which will have a profound impact on the evolution of the entire cryptocurrency market.
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