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Viewpoint: The new round of altcoin market is expected to be shorter and smaller in scale than before, and one should not expect a liquidity frenzy to occur

ChainCatcher news, Argentine economist and senior crypto trader Alex Krüger published an analysis stating that the current state of the crypto market is similar to May 2021 and May 2024, but still very different. Bitcoin is currently in a range-bound consolidation, but is expected to eventually break upwards. The supercycle theory remains valid; although the total market capitalization of the overall crypto market (excluding BTC and stablecoins) has significantly increased, most established altcoins struggle to sustain benefits, and one should not expect a long-term liquidity frenzy that boosts all projects.Regarding major assets, SOL has shown the strongest performance, but will face significant unlocking pressure in the next two months, and the tax season may trigger sell-offs in a month. Ethereum needs to regain momentum by enhancing the value capture of the L2 ecosystem and developing more killer applications.For the altcoin market, Krüger expects the next round of market activity to be shorter and smaller in scale than before. Although current market sentiment and positions are relatively pessimistic, it is difficult to predict specific timing in the absence of clear catalysts. He believes that when market participants generally feel angry or frustrated, it is actually a bullish signal.On a macro level, Krüger expects the impact of tariff policies to gradually weaken, and government efficiency improvements will become a focal point for the market. The Federal Reserve may lower interest rates in June, but later than the market expects, as it needs to confirm that tariffs will not have secondary effects. This will affect both short-term and long-term interest rates, driving up risk assets.He advises investors to remain optimistic while being patient, and not to go all-in to cope with two-way volatility; the current market environment is more suitable for active traders to participate.
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