With only one day left before the Spring Festival, the cryptocurrency market seems unwilling to let everyone have an easy Lunar New Year. The recent wave of plunges has caught many off guard, with Bitcoin falling below 100,000 again and Altcoins collectively sliding, causing market sentiment to plummet instantly. The core reason for this adjustment can be traced back to DeepSeek - a suddenly popular "Chinese version" of ChatGPT. Because DeepSeek's performance is close to GPT, but the development cost is only one-tenth of GPT, it has become the focus of market attention and has directly topped the App Store download list. Since DeepSeek may have a huge impact on the US stock market, and Bitcoin is highly correlated with the US stock market, the cryptocurrency market has also plummeted accordingly.
In this plunge, although the decline in Bitcoin is still relatively controllable, falling back below 100,000, the decline in Altcoins has been quite disastrous, with some Altcoins plunging 30-40% in just two days, leaving people stunned. Just yesterday, I mentioned that if you want to buy the dips, it's best to choose mainstream coins, and Altcoins can be allocated appropriately. Now it seems that the prices of Altcoins do have a certain cost-performance ratio, so I choose to buy some appropriately, but I remind everyone that the position of Altcoins should not be too heavy, and diversified investment is the key.
It is worth noting that the number of Altcoins has already reached 300 times that of the previous bull market, which also means that a widespread bull market is almost impossible to reappear, so the current Altcoin market is more about rotation rather than an overall rise. The so-called "Altcoin season" may also have become a thing of the past. Even in the crazy market of 2017, a new coin still needed a white paper and promotion, but now almost any celebrity can directly issue virtual currency, and the market capitalization is often not low. How many new coins can this market really accommodate?
Another phenomenon is that the coins listed on the exchanges have gradually become the exit channel for early investors, and this situation seems to be very similar to the "speculation on new stocks" in some A-share markets. If the exchange does not bring real value enhancement, but many of the listed coins have gone into a one-way decline, the secondary market investors have become the victims. With the market downturn, people may be more inclined to turn to on-chain to explore new projects, but this is obviously more risky and challenging, and the overall investment environment is also gradually deteriorating.
In general, the current market risk is relatively high, and the primary principle of secondary market investment should be to buy at low prices and wait for the market to recover before looking for other opportunities. Around the Spring Festival, the market may still have some adjustments, and everyone needs to be cautious and avoid getting into trouble in this round of the market.
Finally, there are actually a lot of things that haven't been written in, such as specific opportunities and specific decisions, which are often not something that can be summarized in an article.
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