CPI is in line with expectations, the Fed will cut interest rates again this month
Both the U.S. stock market and the crypto market have seen a rebound
$BTC returned to $100,000. The market experienced a wave of leverage cleanup and then showed a more rapid rebound momentum than the last time.
At around 9 o'clock last night, the U.S. November unadjusted CPI annual rate rebounded further, rising for the second consecutive month to 2.7%, in line with market expectations and rising to a four-month high.
Yesterday, traders increased their bets on a December rate cut by the Federal Reserve, with the swap market pricing in a 96.4% chance of a rate cut this month, up from 86.1% before the data.
If the Federal Reserve cuts interest rates again this month, it will undoubtedly increase market liquidity and benefit the crypto market.
Bitcoin and Ethereum spot ETF data still show large net inflows
Bitcoin spot ETF data is one of the important reference indicators for observing OTC fund inflows. Since November, there have been a total of 7 net outflows, but the amount is relatively small.
On the other hand, the number of days with net inflows is far greater than that with net outflows. In addition, since November 27, Bitcoin spot ETF data has achieved 9 consecutive days of net inflows, and funds are still pouring in. Currently, the total net inflow of Bitcoin spot ETFs is 34.45 billion US dollars.
As for the Ethereum spot ETF, it has gone from being unpopular in the beginning and experiencing a long period of sluggish data to now seeing large net inflows.
Since November 22, the Ethereum spot ETF has achieved net inflows for 12 consecutive days, and even had three single-day net inflows of more than $300 million. So far, the Ethereum spot ETF has accumulated a total net inflow of $1.89 billion, and the total daily transaction volume has exceeded $470 million.
The continuous inflow of off-market funds has played a significant role in the rise in Ethereum prices.
The law of plate rotation:
First, the sector rotation speed is too fast, the dealer seems to be in a hurry to get off work, or the dealer makes you think that it is off work, and the breakthrough price falls back. When you take a nap, the dealer secretly goes to work in the middle of the night, so you sell Feiyong and make a profit. The factors causing this phenomenon are not very clear. The continuity of the amount of funds may be one reason. The dealer wants to pull the market, but cannot bring too many people to make money together. New leeks and new funds are limited, so it needs to fluctuate upward.
Therefore, in this round, we can clearly see that the following public chains are the core, and the ecosystems and tracks they represent.
First: Ethereum ecology, mainly representing TVL-oriented Ethereum layer 1 and layer 2, DEFI, NFT, etc.
Second: SOL ecology, mainly representing TVL and attention economy-oriented MEME, DEPIN and AI;
Third: Base ecology, which mainly represents the SOL ecology, after the MEME hype is over, with lower GAS, smoother on-chain experience, and more convenient access for outside funds: relying on COINBASE, it is easy to introduce legal currency into the chain to play MEME, as well as convenient abstract accounts.
Finally, there is an ecosystem that has not yet been launched, which is TON. As mentioned earlier, it represents a channel for introducing new traffic from outside the circle, whether it is social or gaming.
In other words, the TON ecosystem is becoming popular again, and TON coins as well as social and gaming-related fields will all see an explosion, but whether it will actually explode is indeed currently unknown.
Preferred MEME track targets in this round
Yesterday I said I was optimistic about the AI MEME track, and today it showed such a strong performance
This is mainly because the popularity and consensus of this track are very high. The rise of AI MEME is basically in line with the rhythm of the US stock market. After the market hyped AI hardware infrastructure, it began to hype AI software applications. The logic is similar to that after hyping Apple mobile phone hardware, it began to hype mobile games and other apps. I think the AI MEME track is likely to become the mainstream narrative of this round of bull market. It is also a major trend in the development of global artificial intelligence and may be hyped by capital and retail investors in turn. In addition, pnut has also risen by more than 30%, mainly because it is listed on Coinbase, and the imagination space has been opened. We can look forward to its subsequent performance.
It can be seen that recently, MEME coins are more popular on Coinbase, while Binance mainly lists VC coins.
However, the performance of several VC coins on Binance has been poor recently, and retail investors and large funds are unwilling to take over.
With MEME coin being so popular, it is estimated that Binance will soon start listing MEME coin projects again.
You can ambush some MEME coin projects that may be listed on Binance in advance.
The most eye-catching rebounds are LINK, AAVE and SUI. The news that the Trump family's project purchased AAVE and LINK led to a further rise in the market. It is not recommended to chase the ones that have already risen.
➜ $PNUT
The fluctuation of $PNUT’s price is part of the market adjustment. As the meme coin that broke $1B market value the fastest, its recent decline may be a chip consolidation.
Historical experience shows that $SHIB and $PEPE both have an adjustment period after the upper head, and the bull market background of $PNUT may shorten its consolidation time. In the long run, $PNUT has the potential to become the leader of SOL meme, and its political narrative and market heat support its potential.
➜ $BABYDOGE
In late November, Binance also announced the new spot listing of BABYDOGE. Babydoge seems to be relatively resistant to declines overall. It can be regarded as a meme that was directly repaired after the daily level decline.
The recent surge in BABYDOGE amid volatile market conditions can be largely attributed to Musk’s tweets and the overall development of their team.
➜ $UNI
It has long been said that this is Grayscale's largest holding weight, and it has great potential in the future. UNI tokens occupy an important position in the DeFi ecosystem. As the DeFi market continues to expand, Uniswap's trading volume and liquidity are expected to continue to increase, thereby driving up the value of UNI tokens.
Considering the importance of Uniswap in the field of decentralized finance, UNI is undoubtedly an altcoin with high investment potential.
➜ $SAGA
Saga will redefine the way dApps work. Built for scalability, it allows developers to create custom chains dedicated to specific applications, ensuring optimized performance.
This modular approach makes Saga highly adaptable and has attracted attention from projects in fields such as finance, gaming, etc. As the demand for customized blockchain solutions continues to grow, it is likely to become a key player in the market.
