Stablecoin liquidity is up as new investors deploy fresh capital, Bitcoin ($BTC) mining stocks are zooming, and the top ten cryptocurrencies are already showing signs of recovery after the Matrixport ETF report sent a chill through the market. The pre-bull market appears to be back on track, and investors should start to consider which cryptocurrencies to buy in early 2024. For newbies who might have no clue where to start, here’s a guide on how to navigate price trends and make those 10x decisions today.
Narratives: The ETF Play (Which is Still in Play)
A classic lesson investors must learn is the power of narratives. Markets are forward-looking, and any token with a story/narrative will outperform the market. For example, the Bitcoin narrative is a hard currency with a fixed scarcity that offers a stable store of value. As inflation erodes the dollar’s purchasing power, $BTC’s value proposition increases.
After understanding a token narrative, investors need to understand market narratives. The Spot ETF has been one of 2023’s largest narratives, despite recent concerns it might not go exactly as planned. The belief is that an ETF product will unlock potentially trillions of dollars of institutional capital for $BTC investment. How to leverage this narrative? Front-run it. If the Spot ETF is approved in January, the best decision is to buy $BTC before its approval, including on the FUD dips – eventually, whether sooner or later, the ETF is all but guaranteed to happen, despite some bumps in the road along the way.
Sentiment Rotations: $SOL, $AVAX, $SEI
Sentiment rotations are another classic method for navigating price trends and discovering the best cryptocurrencies to buy early. The most recent example would be Solana’s ($SOL) enormous rally as people fell in love with its low transaction cost. This was an early sign of the layer one trade being born again and a sentiment rotation from Ethereum ($ETH), the consensus bet in early 2023, to alternative smart contract platforms.
Investors at this stage need to ask themselves as sentiment changes which will be the next top gainers. Anything within the Solana ecosystem was easy pickings, and Avalanche ($AVAX), another cheap blockchain, was the obvious second leg.
Following Avalanche’s pump, investors should have understood…
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