1️⃣ Impact of Interest Rates on Crypto

Interest rate changes, especially from the FED, have a profound impact on financial markets, and crypto is no exception.

⭐History shows:

  • BTC often bottoms when interest rates peak.

  • BTC peaks when interest rates are lowered to rock bottom.

⭐Currently:

  • The FED is choosing a gradual path of lowering interest rates, to control inflation and avoid the risk of economic crisis.

💥While this is bad news in the short term, it lays the foundation for long-term growth, especially as the FED is expected to continue cutting interest rates in 2024. This will gradually inject money into the market, creating conditions for a strong wave of growth in crypto.

2️⃣ Where Are We In The Crypto Cycle?

⭐Market Status:

  • $BTC has gone from $16k to a peak of nearly $108k, a 6.7x increase.

  • #Altcoins : Many coins have gone up 10x, 20x.

⭐Key Driver:

  • FOMO after Donald Trump's victory in the US presidential election.

  • SEC News Gary Gensler to Resign on Trump's Inauguration Day (20-01-2025).

⭐But the real boom will come when:

  • The impact of the interest rate cut starts to be felt.

  • Trump's pro-crypto policy comes into play.

3️⃣ Why is the Crypto Boom Coming?

  1. Involvement of major organizations:

    1.1 Traditional financial funds like BlackRock have entered the crypto market deeply, with BTC holdings far exceeding those of older funds like Grayscale.

    1.2 Bitcoin ETFs facilitate a larger inflow of money from traditional investors into the market.

  2. Acceptance from governments:

    2.1 Many countries are gradually opening up, considering cryptocurrencies as legal assets.

    2.2 The rise in popularity of $BTC makes it a kind of "digital gold" that is difficult to manipulate or completely control by any power.

  3. Signs of expanding the game:

    3.1 Many companies are adding BTC and other cryptocurrencies to their portfolios.

    3.2 The traditional financial market is gradually becoming saturated, making crypto a more attractive investment channel.

4️⃣ When to Take Profit?

Signs of the end of an uptrend :

  • High market liquidity, large trading volume but the price does not increase significantly.

  • Continuous positive news, and crypto becomes popular from "the neighbor to the vegetable seller."

Profit-taking strategy :

  • Do not try to "take the peak" but divide it into small pieces to sell gradually.

  • "Taking profit is never wrong" - avoid FOMO or regret when the price drops after the peak.

5️⃣ Conclusion: Accumulate & Prepare for the Big Wave

The recent crash is not the end, but an opportunity to accumulate more altcoins at good prices. Be patient and wait for 2024 - a time when interest rates are low, cash flow is abundant, and the market is ripe for an explosion.

Final advice: Stay calm, manage your risks, and don't miss this opportunity! 🚀

#Mr_Pips