98 of the Shanzhai Coin Has Reached Its Peak This Cycle Dont Blindly Bottom Fish Too Early

Coin World Report:
The cryptocurrency market continues to decline, with Bitcoin falling below $54,500 today, nearly a 30% drop from its all-time high of nearly $74,000. Ethereum has also dropped below $2,850, and numerous altcoins have reached new lows. This has prompted Andrew Kang, co-founder and partner of Mechanism Capital, to express his thoughts today:
The most common mistake in the cryptocurrency market is buying too early when the trend shifts from upward to downward. The adjustment after a major market structure collapse is often deeper and longer than most people expect. Instead of buying when Bitcoin drops 10% from its high point, it is better to buy during a general market liquidation when most people are exiting the market and questioning whether cryptocurrencies will ever disappear, as this is when the next cycle begins.
Andrew Kang also stated that he believes over 98% of altcoins have peaked in this cycle, with only a few possibly reaching new highs in the fourth quarter of 2024 or the first quarter of 2025. However, he believes that Bitcoin is in a transition phase towards a super-cyclical asset, retaining characteristics from previous cycles while becoming more of a mature macro asset with increasing accessibility and communication.
Regarding inquiries about meme coins, Andrew Kang responded that meme coins may dominate among the altcoins with the potential to reach new highs, but due to the thousands of meme coins available, investment requires careful selection.
How should we view the future trends of the cryptocurrency market?
Certainly, while seizing opportunities, we must also remain vigilant to market risks. The cryptocurrency market has always been highly volatile, with market conditions changing rapidly. Any negative news can trigger market panic and sell-offs. Therefore, risk control should always be the top priority in investments. As renowned investor Paul Tudor Jones said, “If a losing position causes you negative emotions, simply exit, because you will always have the opportunity to re-enter the market.” During unfavorable market conditions, we should learn to cut losses decisively, patiently await the next opportunity, and not blindly hold onto hope.
Lastly, for ordinary investors, grasping long-term value may be more important than chasing short-term gains. We should learn to identify and judge projects that truly possess innovative value and future prospects, rather than blindly speculating on so-called “hotspots.” Only when we have sufficient understanding and confidence in a project can we make rational investment decisions.
In conclusion, opportunities and challenges coexist in the cryptocurrency market in the second half of 2024. Factors such as the macroeconomic situation, regulatory policies, and technological innovation will all have significant impacts on the market. As investors, we should learn to conduct comprehensive analysis, make prudent decisions, seize opportunities, and strictly control risks.
Lastly, there are many details that have not been included in this article, such as specific opportunities and decisions, which cannot be summarized in a single piece.
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