Starkiller: A new round of bull market is starting, and all short positions were closed last month

Comparing news, crypto investment agency Starkiller recently posted that BTC has risen strongly in the past two days. Combined with market performance over the past month, the agency is highly confident that the digital asset cycle has bottomed out, and revealed that it has closed all short positions last month.

Starkiller said that BTC and ETH previously experienced peak retracement of 54% and 70% respectively, and are now back on the 200-day EMA. This is the first time since the end of the previous cycle; their quantitative model also shows that after stabilizing near the 50-day EMA, BTC and ETH broke through volume and are back on VWAP since the beginning of the year. Furthermore, the current bear market cycle has continued for about 315 days, which is close to the historical average.

Starkiller believes that the recent active promotion of digital asset market rules by US regulators and the expansion of long-term US bond repurchases by the US Treasury are important catalysts for the reversal of the market cycle. Although this is not quantitative easing, the Treasury's focus on long-term yields may improve the liquidity environment, and BTC is still highly dependent on liquidity.

Regarding the new cycle, Starkiller believes that most traditional cryptographic native assets may not replicate previous bull market performance, and investors will pay more attention to real income and agreements that can return value to token holders after experiencing this round of market elimination. It is expected that assets with actual revenue or value capture mechanisms such as HYPE, LIT, PUMP, VVV, and DRV may receive more attention, while a large number of tokens lacking fundamental support may become shorting opportunities in the new upward cycle.

Starkiller also said that BTC may experience a phased adjustment near $80,000 in the short term, and this position is close to the all-time high of VWAP. Despite this, the agency remains highly optimistic about stablecoins, asset tokenization, prediction markets, and on-chain perpetual contracts, and says it is already more optimistic about its long and short liquidity token strategy and DeFi market-neutral return strategy.