Today, the market continues to experience sideways fluctuations. Bitcoin is fluctuating around $100,000, while Ethereum is around $3,930. Among altcoins, the strongest performers are projects in the AI meme and DeFi sectors, such as LINK, AAVE, and Virtual, which have shown counter-trend increases. Some are asking if Bitcoin will experience a significant drop during the Christmas period. I think the likelihood of a significant drop is very low. The recent declines have all been shakeout movements triggered by short squeezes. The major players are washing out some leveraged and weak positions in preparation for the next wave of increases.
From a broader trend perspective, we are currently in the later stages of a bull market. Before Trump takes office on January 20, the market is still looking forward to him fulfilling the promises made during the election. As long as this consensus remains unbroken and there are no major negative news events, Bitcoin is expected to maintain an upward trend.
From the ETF data perspective: yesterday, Bitcoin's spot ETF had a net inflow of $604 million, and Ethereum's spot ETF had a net inflow of $276 million. This week, Ethereum's spot ETF inflow also reached a new high. This indicates that US institutions are increasing their purchases of Ethereum, with new funds flowing into the Ethereum ecosystem.
Yesterday, Ethereum also saw a wave of catching-up momentum, and from the chart perspective, it is about to break through the resistance level. Once it breaks through, it may aim for the previous high of $4,800. The Trump family funds have bought ETH, LINK, and AAVE through the Cow protocol, which has also driven the catching-up momentum of these projects.
