Crypto market outlook: September may become a turning point
Recently, I have had more time to think about market trends, and I would like to share some personal insights.
The overall trend of the crypto market may not become clear until after September. Considering factors such as macroeconomic pressures, summer liquidity shortages, and quarterly rebalancing, the real market dynamics may only emerge after the August holidays when participants return to the market. From the recent market performance, the rise of most altcoins is mainly attributed to short covering. Traders, influenced by the previous rebound, are chasing gains but lack support from long-term holders. Many have already suffered heavy losses before. It is foreseeable that most tokens that surged will subsequently experience a decline of equal magnitude.
Ethereum has rebounded unexpectedly, with sectors such as AI-related tokens, which had previously seen significant declines, leading this rebound. In contrast, tokens with practical use, strong fundamentals, or buyback mechanisms have shown strong resilience, not only experiencing smaller declines but also recovering.