Investment strategy at the beginning of the bull market

Investment strategy

Hold the chips and wait for the bull market.

As of the time of writing, Bitcoin has come to $17,562 and Ethereum has come to $478. Starting from November 11th, Bitcoin has been rising for almost 7 consecutive days.

Under such circumstances, the giant fund Grayscale in the digital currency field seems to be completely unafraid of the price, and is still buying bitcoin in large sums, and at the same time buying Ethereum in large sums. Just the day before yesterday, on November 16, Grayscale bought 3153 Bitcoins and 5290 Ethereum.

Yesterday, another investor, the hedge fund Skybridge Capital, reported that it was seeking a US$3.6 billion license to invest in Bitcoin from the US Securities Regulatory Commission.

The well-known sharing economy giant, Airbnb, also mentioned in its IPO prospectus recently that the new technologies that the company will adapt to in the future include “tokenization” and “cryptocurrency”, which gives this giant Whether or not to accept Bitcoin payments in the future brings a huge room for imagination.

If we link these news with the giants that have entered the Bitcoin field this year (such as MicroStrategy, Paypal, etc.), we can find that under the leadership of the gray card, the investment effect of Bitcoin has been on Wall Street and technology giants. This caused a resonance. In the future, more and more Wall Street financial institutions and technology giants will be involved in Bitcoin.

Judging from this signal, if there is a bull market in this round of digital currencies, there is a high probability that it will be a bull market driven by Bitcoin as the leader, and a bull market driven by the entry of institutional investors as the core driving force.

Just like any investment market, although institutional investors are present in the coming of the bull market, the climax of the bull market must not be triggered by the greed of institutional investors but by retail investors.

Bitcoin has continued to rise from $10,000 to the present. It is obvious that many retail investors have been thrown off the car, but it is formed under the continuous buying of institutional investors led by Grayscale.

At present, the market is still in a relatively stable state on the surface, and has not aroused FOMO sentiment among retail investors. I estimate that after February next year, after the investment market has eliminated and digested all the uncertainties in the next two months, it will be possible to usher in a change in market sentiment, and the following may be a comprehensive market generalization. Up.

In any bull market, all investment products will basically rise in general, and those with no value will rise to heaven. The same is true for the digital currency market. Not only will the mainstream currencies we pay attention to will rise, but the DeFi tokens that have fallen into underestimation will also rise.

Readers often leave messages at the end of our articles asking if a certain token can rise to what price next year. It is difficult for me to answer such a question because it is impossible to estimate. But as mentioned above, in a bull market, all tokens will basically rise to the sky, which is a high probability that will happen.

So if we hold valuable and potential tokens, we don’t have to worry about whether it will rise in a bull market.

In addition, as I mentioned in the previous article, the market may usher in a wave of corrections due to various accidents and uncertainties in the next two months. If this wave of corrections occurs, I am afraid it will be the result of the bull market. There are few opportunities left.

Therefore, in the current market environment, our best strategy is: hold the tokens in hand tightly and wait for the arrival of the bull market; at the same time, be prepared for spare funds that will not affect your life. Once there is a huge callback during this period, seize Such an opportunity to buy cheap chips.


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