Crypto Market Outlook: Bitcoin Remains Strong, AI May Become the Next Hot Spot

Recently, the crypto market has become active again, with Bitcoin surpassing $110,000, and enthusiasm for altcoins is high. However, subsequent fluctuations have shattered some illusions. Against this backdrop, Bitcoin and Ethereum still perform strongly. So how will the market develop in the future? Which areas may become new investment hotspots?

A senior trading director shared his views on the current market:

The real market trends may only become apparent after September. Considering factors such as macroeconomic pressures, insufficient summer liquidity, and quarter-end rebalancing, market participants will only return after the August holiday, which will create a new dynamic. The recent surge in altcoins has been mainly driven by short squeezes, lacking support from long-term holders. Many tokens that have skyrocketed subsequently experienced severe corrections.

The rebound of Ethereum was unexpected, led by sectors that had previously suffered heavy losses such as AI and MeMe coins. Tokens with actual utility, good fundamentals, or buyback mechanisms showed strong resilience, such as Syrup, Hype, and AAVE.

Based on market observations, the following insights can be drawn:

The demand for Bitcoin is real and persistent

Traditional capital is entering the market through compliant channels such as ETFs. The nature of the capital supporting Bitcoin is different from previous years, which makes large-scale sell-offs unlikely to happen unless there are significant macro events.

Altcoin differentiation intensifies

Funds will eventually flow back to altcoins, but not comprehensively. Only tokens with clear use cases and applications are likely to attract capital. This is also the reason why Ethereum may outperform other public chains. Clear regulations, increased DeFi usage, deflationary mechanisms, and staking demand together create a strong positive cycle.

Venture-backed tokens under pressure

Token unlocks will continue to put pressure on prices. In times of insufficient liquidity, early investors' selling limits the upward potential. Tokens from certain ecosystems face ongoing selling pressure due to the validator reward structure.

The advantages of MeMe coin are fading

MeMe coin once had structural advantages due to features such as no venture capital unlock and fair issuance. However, this phase may have come to an end. Certain well-known events mark the peak of interest in MeMe coin, after which interest began to wane. In the future, only MeMe coins with a strong narrative and market recognition will have real speculative value.

AI and encryption create new opportunities

As the popularity of MeMe coin fades, the combination of AI and encryption may become the next investment hotspot. Many AI+encryption projects adopt a fair distribution model, resonating with the market's demand for decentralization. Although early projects may fail after hype, projects that are truly based on practicality are quietly being built.

In the near future, the AI + crypto field may contain the greatest asymmetric investment opportunities. Investors can closely monitor on-chain market dynamics to seize the advantages brought by information asymmetry.

Overall, the crypto market is undergoing differentiation, and projects with practical applications and clear value propositions will be more favored. Investors need to remain vigilant, keep an eye on emerging trends, and also pay attention to risk management.