According to the query, on May 8, "Dogecoin Market Value" was listed on Weibo's hot search list, and now ranks 19th. According to QKL123 data, Dogecoin rose by more than 23% today, breaking through $0.7 at one point, and its current market value is $89.4 billion, ranking fourth, second only to BTC, ETH and BNB.
Today's point of view
Long-term rating: Overweight
Short Cycle Rating:
Bitcoin accumulation
Lighten up in small-cap cryptocurrencies
Today's point of view
"Inflation in developed countries is difficult to recover quickly"; "Each economic crisis is often accompanied by a long recovery of the job market"
We have repeatedly reiterated this view in the past.
When the inflation expectations in the United States are soaring and the 10-year national debt soars rapidly, we remind investors that this will not last long. The yield of US national debt is in the process of falling for 40 years, and this trend will not be reversed. We remind investors It is impossible for the Federal Reserve to raise interest rates this year, and investors are asked to avoid chasing emotional panic in the short term.
Yesterday's US employment data confirmed our view. At 8:30 Beijing time last night, the U.S. dollar index fell rapidly, while gold and bitcoin rose rapidly. The reason is that the U.S. non-agricultural data was far more than unexpectedly weak. In April, the U.S. added only 266,000 new jobs, far below the expected 1 million, and the unemployment rate rose from 6% to 6.1%.
The employment data dealt a severe blow to the market's expectations of overheating or rapid recovery of the US economy and expectations of overheating inflation this year. This undoubtedly gave the US government's stimulus bill and the basis for maintaining the loose monetary environment.
After the news was released, Bitcoin rose up.
The picture shows a Bitcoin price trend chart released by @therationalroot on Twitter. We can observe that among the three bull markets of Bitcoin, each time the price reaches 3 times the previous round high, it will go sideways. In 2013, it was sideways for about 174 to 197 days, and after the breakthrough, the price became a swan song.
In 2017, after Bitcoin reached 3 times the previous high point, it traded sideways for 55 days. After the breakthrough, the price became the swan song.
In this round of bitcoin bull market, when bitcoin reached three times the historical high of 20,000 US dollars, it has been in a sideways arrangement for about 76 days. The law of the blockchain bull market: the rising market will come soon, and the 60,000 US dollar bitcoin will become a swan song !
We believe that the low point of Bitcoin's current round of adjustment has already been given. Considering the madness of altcoins and the oversold situation of Bitcoin's market value, we choose to hold Bitcoin with more upside potential, even if it means missing some Altcoins' last wild rally.
As the USDT trading pairs of mainstream cryptocurrencies such as Ethereum and Dogecoin hit important resistance levels, we believe that the market value of Bitcoin will rise in the short term.
