Opportunities in Crypto Assets Amid Global Market Fluctuation

The global market is currently in a complex and volatile period. Economic data shows some recession risks, but changes in tariff policies have brought some positive sentiment to the market. Against this backdrop, the Crypto Assets market seems to be brewing a new round of increase.

From a macroeconomic perspective, although the global effective tariff rate is still far higher than it was a few years ago, the recent restrictions and suspensions on tariffs against China have provided the market with some breathing room. At the same time, some soft data, such as the manufacturing index and consumer confidence, still indicate that the economy is under pressure. However, hard data currently still show that the economy remains relatively strong.

In the short term, the market may experience a window of rising risk appetite. Crypto Assets, as the asset class most sensitive to liquidity, seem to have sensed this trend. Factors such as high government fiscal spending, the upcoming large-scale debt refinancing, and slowing inflation may all contribute to improving liquidity conditions.

Within the crypto market, we observe that Bitcoin dominance may have peaked, while altcoins and Meme coins have begun to rise steadily. This could signal the arrival of a new round of "alt season." Historical experience shows that "alt season" typically occurs at the end of a cycle, characterized by a decline in Bitcoin dominance, strong performance of alternative coins like Ethereum, and a resurgence of retail investor interest.

However, we are still in the early stages of this process. The ETH/BTC ratio and ETH price are still a long way from their historical highs, and the Federal Reserve is still implementing a quantitative tightening policy. However, last week's strong performance of Ethereum reminded people of the bull market in early 2021.

From an investment strategy perspective, it is currently worth considering reallocating some profits into higher-risk assets. Tokens with a strong community foundation and scarcity, fundamentally strong DeFi projects, and top Meme coins may perform well. However, it is important to note that this is not a time to go all in, but rather to seize potential upward opportunities while maintaining caution.

We also need to be aware of some potential risks: whether Bitcoin can break through its historical high is crucial; summer usually sees greater fluctuations; trends in the bond market may affect valuations; the uncertainty of Crypto Assets regulatory policies, etc. In addition, as the market heats up, investors must also be cautious of additional risks such as hacker attacks, hidden leverage, and fraud.

Overall, "Shanzhai Season" may be brewing, but that doesn't mean all altcoins will perform well. Asset selection and timing remain crucial. While enjoying the potential rise opportunities that the current market may bring, one should also be prepared for better buying opportunities that may arise in the future.