Metrics Ventures November Market Observation Guide for the Cryptocurrency Market:

1/ The prolonged disordered consolidation in the market, lasting for 7 months, has finally come to an end. The price behavior before and after the election clearly illustrates the liquidity dilemma emphasized repeatedly in previous months and the growing pricing power outside the market. The trading behaviors of the past cycle are increasingly constrained by the changes in the broader environment, and the market has provided all participants with a clear answer.

2/ From an internal perspective, the various operations of altcoins are constrained by a significant lack of liquidity, and price behaviors have all ended in failure. This month, the market cap limit for fully circulating altcoins is around 1 billion USD, while the prices of new coins have lost their anchors, and the rapid rotation in the Meme sector further confirms the issues with capital flow in the market.

3/ The strategy is no longer the same old story; whether it’s the upcoming FOMC or geopolitical factors, they are not the key factors determining the overall trend. The tide is vast, and the best strategy is to quietly accompany the industry's growth.

Market Overview and Commentary on Market Trends:

As of the beginning of the month when I started writing, the biggest difference from the previous monthly report is:

① The unexpected outcome of the election has significantly alleviated risk concerns, leading Bitcoin to break through new highs with increased volume. Although it still requires time to confirm the breakout, any technical perspective should eliminate previous worries.

② The four major geopolitical issues, the long-term rise in U.S. Treasury yields, excessive Trump trading, and risks of insufficient liquidity that have overshadowed the month have now been reduced by half. Due to the unexpectedly strong government, the market may provide various assets with an optimistic risk premium for a certain period.

③ Unfortunately, there is still no clear improvement in liquidity within the market. This breakout is vastly different in momentum and sentiment from the breakout at the beginning of the year. Although many VC coins are at the end of the March consolidation cycle, it appears that a large-scale market trend cannot be compared to previous rounds.

In the long term, the bell of a new era has already rung. Perhaps insights on macro, political, military, and economic issues vary from person to person, but the operational model of the capital reservoir and its future positioning are already clear. It needs to be reiterated that the change in the path of capital flow has led to a weakening correlation between BTC and the funds in altcoins. The so-called comprehensive altcoin season, under the backdrop of high penetration, is left with only two paths: ultra-loose liquidity and innovative gameplay.

This monthly report is particularly brief, with the true meaning being: Ride the wave, follow the trading trend, with a bright heart, what more is there to say.

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