Most of the funds will still flow into Bitcoin. The fixed supply of Bitcoin and its long-term expectations to surpass gold make it the safest investment target.
On August 18, Huobi HTX's new episode of "Partner 1+1" invited Sister Mao and Brother Chao BTC to discuss the theme "With 7 trillion cash ready to go, will the altcoin season fully arrive in September?" They delved into Web3, cryptocurrency market trends, and their views on the altcoin season.
Partner 1+1: Please introduce yourselves.
Sister Mao: I entered the industry in 2019, mainly engaged in primary project research, community observation, and secondary market trading strategies. I often share insights on multiple platforms, with a particular focus on popular sectors like DeFi and AI.
Brother Chao BTC: An old OG since 2013, I have experienced multiple bull and bear markets. My core strategy is "long-term holding of Bitcoin," and I have participated in infrastructure investments such as mining farms, wallets, and exchanges.
Partner 1+1: What are the intuitive experiences and signals of the altcoin season?
Sister Mao: My initial impression of altcoins began during the 2021 bull market when community members shared exchange screenshots daily, and projects saw shocking gains of 2x, 10x, or even 20x. At that time, the market was not only discussing BTC but also enthusiastic about sectors like DeFi, reflecting a surge in market sentiment. What impressed me the most was that altcoins skyrocketed during the bull market, but the pullbacks were also severe, leading to significant fluctuations in market sentiment.
The signals for the altcoin season mainly come from the heat of community discussions. Information spreads quickly in the crypto space, and professional traders or community observers share on-chain data or project updates. When the discussion heats up, the K-line trends usually reflect market sentiment. For example, after Bitcoin or Ethereum hits a new high, liquidity tends to overflow into altcoins, and project teams or whales may take the opportunity to pump altcoin projects. This is a typical signal of hot money inflow.
In the past, the altcoin season was often driven by hot money inflow, leading to "wild growth" in the market. However, this round of the market is different due to the Trump administration's support for cryptocurrencies, the development of the stablecoin market, and increased regulation. Bitcoin is recognized as a Federal Reserve reserve asset, project standardization has improved, and liquidity is not as frenzied as before. The cycle of the altcoin season has lengthened; for instance, a project may rise 3-4 times through positive news after six months, rather than skyrocketing 10 times in a short period. Regulation and market rationalization are the underlying reasons.
Brother Chao BTC: The altcoin season is usually driven by the wealth effect triggered by the explosive growth of mainstream coins (like BTC and ETH), attracting funds from outside the circle or from those on the sidelines. These funds are unwilling to buy Bitcoin at high prices and instead turn to altcoins. The current rise in Ethereum's price may create wealth myths, increasing the likelihood of an altcoin season. In the long run, to trigger the altcoin season, Ethereum must break new highs.
Additionally, while Coinbase's definition that "75% of the top 50 market cap tokens outperform BTC within 90 days" is accurate, it is too lagging. By the time this standard is met, the altcoin season may have already passed halfway. A more effective way to judge is to observe indicators from the Web2 world, such as Google Trends and Baidu Index, to see if cryptocurrencies are being discussed by more people.
Partner 1+1: How to learn trading in Web3 and get through the beginner phase? What are the current money-making opportunities in Web3?
Sister Mao: Beginners often experience "good luck," but this luck won't last forever. It's essential to be mentally prepared for losses, as this is part of growth. Clearly define how much loss you can tolerate and set stop-loss points. Ensuring the safety of your funds is more important than chasing projects, as new projects are constantly emerging in the market. Follow large capital (like Grayscale) or well-known project teams (like Brother Sun) because they have stronger backing and longer-term strategies, making their projects relatively stable. Avoid immersing yourself in trading every day and staring at K-lines. Stay calm and avoid emotional trading. Build a solid foundation by learning trading concepts, indicators, and policies.
Compared to traditional industries, Web3 still offers many opportunities with high freedom. Recommended areas to focus on: Popular sectors: such as DeFi + AI, Web3 + AI, and new assets on exchanges (like projects launched on Huobi HTX). Low-cost participation: such as airdrops, rebates, mining, and Launchpad. Although the myths of getting rich quickly have decreased, in a regulated market, returns are still better than traditional jobs. It's advisable to study the market more and discover potential projects.
Brother Chao BTC: As an old investor and practitioner, I am optimistic about BTC in the long run. New users should not be misled by hundredfold contracts and thousandfold meme coins. Contract trading carries high risks, and rolling positions will inevitably lead to liquidation. Meme coins are more like gambling than investing. You can start with zero-cost or low-cost activities, such as airdrops, content creation, and exchange invitation rebates, to accumulate experience and capital.
Partner 1+1: What are your views and suggestions regarding Huobi HTX and HTX DAO?
Sister Mao: Huobi HTX is the first exchange in the industry governed by a DAO organization, which is a very unique and forward-looking model. It allows users to genuinely experience the practice of community governance, which is a long-term and promising process.
In the past two years, Huobi HTX has become more professional and internationalized in terms of branding, team management, external image, and asset management (such as Brother Sun personally overseeing coin listings). I suggest that Huobi HTX be more proactive in asset allocation, introducing more popular narratives (like AI and Web3 games) to provide users with more trading opportunities.
Brother Chao BTC: In an era where most institutions have abandoned the spirit of decentralization, Huobi HTX and HTX DAO are among the few mainstream institutions that continue to inherit and promote the spirit of DAO. This is a positive development for the entire industry.
About Huobi HTX
Founded in 2013, Huobi HTX has developed over 12 years from a cryptocurrency exchange into a comprehensive blockchain business ecosystem, covering digital asset trading, financial derivatives, research, investment, incubation, and other businesses.
As a leading global Web3 portal, Huobi HTX adheres to a development strategy of global expansion, ecological prosperity, wealth effect, and safety compliance, providing comprehensive, safe, and reliable value and services for virtual currency enthusiasts worldwide.
For more information about Huobi HTX, please visit https://www.htx.com/ or HTX Square, and follow X, Telegram, and Discord. For further inquiries, please contact glo-media@htx-inc.com.
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