Meng Yan: The bull market has begun, A-shares are just the beginning, the altcoin season will depend on the outcome of the US election.

With China announcing a series of stimulus measures to boost the economy, the Chinese stock market has experienced a rebound. The cryptocurrency market has a significant number of Chinese participants, and some of them have even begun to shift their focus from the cryptocurrency market back to the A-share market, raising concerns about how Chinese economic policies will impact capital flow. Recently, Meng Yan, co-founder of Solv Protocol, expressed his views on this matter and also discussed the impact of the U.S. election on the Web 3 industry. Source

The surge in the Chinese stock market is attributed to the smaller-than-expected contraction in the manufacturing sector, prompting cryptocurrency enthusiasts to turn their attention to A-shares.

The Bull Market Has Begun, China's Massive Monetary Policy is Just the Prelude

Firstly, Meng Yan made it clear that he believes the global market's euphoria has been ignited, and this sentiment is not limited to a specific market. The Chinese market, after a long dry spell, is now experiencing a period of plenty, with A-shares not being the only standout, but merely the craziest in the herd. Here, he also hinted that A-shares are just the beginning of a bull market. He also mentioned that the Japanese market is always the most special one, hence not very indicative. The Liberal Democratic Party of Japan elected Shigeru Ishiba as its leader, indicating that he will become Japan's 102nd Prime Minister.

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He said, "The characteristics of the market since 2020 have been late to rise, high jumps, quick crashes, and deep drops. Due to its small market cap, opacity, and lack of regulation, when the cryptocurrency market takes off, the magnitude of the rise will be particularly high." This statement also adds imagination to the growth potential of the market in the future. However, 2020 has only been one cycle, so this small sample may not be very meaningful, especially as the previous cycle coincided with the boost from the pandemic and monetary policies.

Don't Touch What You Don't Understand, Cryptocurrency Market Only Cares About "When to Sell"

However, he mentioned that one can take advantage of the time difference by speculating in the stock market first and considering returning to the cryptocurrency market when the bull market arrives. From his perspective, it is clear that the cryptocurrency market's bull market is not urgent, and the stock market may see a rebound first. Alternatively, the cryptocurrency market may have to wait for capital outflows from traditional financial markets to potentially usher in a major bull market.

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But he also said that if one has not been involved in A-shares, staying in the cryptocurrency market is also a good option because the volatility here is always beyond what one can imagine in the stock market. He pointed out that the cryptocurrency market always faces one dilemma - when to sell. He also mentioned that he wouldn't play in A-shares, not because he doesn't understand the logic behind these policies or underestimates their strength, but because he has not been paying attention to this market for a long time and believes he lacks the basic expertise to solve the problem of "when to sell." Thus, choosing to stay in a familiar market is better.

Here, he revealed his trading logic - don't touch markets you don't understand. This may also be a common mistake for many novice investors who often lose a lot of money when they are ignorant, so choosing a familiar market may be a better approach, although the author subjectively believes that he may be promoting the cryptocurrency market here.

Meng Yan's View Aligns with VanEck, Altcoin Season Depends on the Election Outcome

Finally, he mentioned that the U.S. election will have a huge impact on the entire Web 3 industry, and we can refer to his blog from a few days ago here. He stated that Trump's position on the industry is already set, and if he is re-elected, he will implement a series of policies. He believes that Trump's election will have a more certain impact on the industry. However, He Jinli seems to have not yet figured out his stance on the industry, so if He Jinli is elected, anything is possible.

As for whether the policies of the two candidates towards the industry are just to win votes or intentional, he believes that in fact, the cryptocurrency market has little impact on issues such as the economy and immigration, so the two candidates are unlikely to lie about it. Especially Trump, who can't even bother to say nice words about the Russia-Ukraine war, let alone to the cryptocurrency market.

He also pointed out that the attitudes of the two towards the industry actually align with their party's characteristics. The Republican Party emphasizes individual freedom, which is more in line with the values of the cryptocurrency industry. The Democratic Party is a disciplined organization that values government empowerment and increased regulation. However, he also believes that Biden and He Jinli's government is indeed more attentive to the development of the high-tech industry. Therefore, if Web3 proves to be a strategically valuable direction for high-tech industry development in the coming years, He Jinli's recent statements have left enough flexibility.

He believes that regardless of the election result, a bull market for BTC will inevitably occur. This matter is less affected by the election result and has a higher level of certainty. However, whether altcoins will be bullish or bearish, big bulls or small bulls, the impact of the election result will be more drastic.

This argument may be consistent with the position of VanEck we reported earlier, that a Trump victory would benefit the entire market. If He Jinli is elected, assets such as Bitcoin and Ethereum, with clear regulations, will absorb the market share of altcoins.

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