MVC November Market Observation | The market has given the answer

The 7-month period of disorderly market consolidation has ended, with post-election price behavior highlighting liquidity challenges and the rising influence of OTC pricing power, as noted in recent months.
Altcoin operations are severely constrained by liquidity shortages, leading to failed price actions; this month's market cap for fully circulating altcoins is capped around $1 billion, with new coin prices losing their anchor.
The Meme sector's rapid rotation underscores ongoing capital flow issues in the market, while traditional strategies (e.g., betting on FOMC or geopolitics) are no longer reliable trend determinants.
Bitcoin's post-election breakout to new highs (despite pending confirmation) has eased risk concerns, though liquidity remains a critical unresolved problem, dampening momentum compared to early-year rallies.
Four major geopolitical risks (e.g., rising Treasury yields, Trump trades) have halved, with potential for optimistic risk premiums across assets due to stronger-than-expected government actions.
Long-term, the market signals a new era, but altcoin seasons now require either ultra-loose liquidity or groundbreaking innovation, as BTC-altcoin capital linkages weaken.
Key takeaway: Follow the trend, avoid overcomplication—liquidity constraints and macro shifts dictate the path forward.

Metrics Ventures, a secondary fund in the crypto market, has released a summary of its November market observations:

1/ The disorderly consolidation that lasted for 7 months has finally come to an end. The price behavior before and after the election dust settled clearly demonstrated the liquidity dilemma on the market and the growing strength of OTC pricing power that have been repeatedly emphasized in the past few months. The trading behavior of the past cycle has been increasingly constrained by the changes in the overall environment. The market has already given a clear answer to all participants.

2/ From the perspective of the market, all operations of altcoins are constrained by the obvious lack of liquidity, and price behaviors have ended in failure. This month, the market value of all circulating altcoins in the market is capped at around US$1 billion, and the price of new coins has lost its anchor, and the high-speed rotation of the Meme sector has once again confirmed the problem of capital flow in the market.

3/ The strategy is no longer a cliché. Neither the future FOMC nor the geopolitical situation are worth betting on to determine the general trend. The trend is unstoppable, and it is best to continue to quietly accompany the growth of the industry.

Inventory and comments on the overall market situation and market trends:

As of the date when I started writing this article at the beginning of this month, the biggest differences between the market and the previous monthly report are:

① The unexpected outcome of the election has largely alleviated risk concerns, and Bitcoin has broken through new highs with large volume. Although it still takes time to confirm the breakthrough, from the perspective of any technical school, previous concerns should be eliminated.

② The four major geopolitical risks that have been looming this month, including the upward trend in long-term US Treasury bond yields, excessive Trump transactions, and insufficient liquidity, have now been eliminated by half. Due to the unexpectedly strong government, the market may give optimistic risk premiums to all types of assets for a certain period of time.

③ Unfortunately, there is still no clear improvement in liquidity in the market. This breakthrough is far from the breakthrough at the beginning of the year in terms of momentum and sentiment. Although a large number of VC coins are at the end of the March consolidation cycle, the current large-scale market is bound to be incomparable with the previous rounds.

In the long run, the bell of a new era has already rung. Although there may be different opinions on macro, political, military and economic issues, the operation mode and future positioning of the reservoir are clear. What needs to be mentioned again is that the change in the flow path of funds has led to the weaker capital linkage between BTC and the Altcoins in the market. The so-called full-scale altcoin season has only two options: ultra-loose liquidity and leapfrog gameplay innovation. This monthly report is particularly brief, and the real meaning is, Ride the wave, trade trend, this heart is bright, what else can I say.