BTC price plummeted; why can altcoins remain stable?
The recent plunge in BTC really scared the hearts of many, dropping directly below $93,000. But did you notice? Many altcoins managed to hold up this time, especially BNB, which we previously mentioned, even rose against the trend to nearly $700!
Let's take a look at the on-chain data; the situation is a bit subtle. Stablecoins are being withdrawn from exchanges, and it is now similar to what it was on December 7. Additionally, exchanges have gained 5000 BTC, most of which came from Binance. The ETF side is also not optimistic, with three consecutive days of outflows exceeding $84 million.
But don't worry, in the next two days, we need to hold the $92,000 level. Once Christmas is over and the big institutions return to trading, the market will heat up immediately, and our counterattack moment will arrive.
If BTC can stabilize, even if it doesn't rise, the spring for altcoins is coming soon. At this point, dollar-cost averaging could be a good idea. Personally, I am optimistic about Uni, FTM, BTC, and BNB, as they all have significant potential.
The spot Ethereum ETF had a net inflow of $131 million yesterday; the market trend during Christmas: is the correction a breather for the bull market?
Yesterday, the spot Ethereum ETF welcomed a net inflow of $131 million, showing strong market demand for Ethereum. This influx of funds suggests that investor sentiment towards Ethereum remains strong, especially against the backdrop of increasing uncertainty in the current cryptocurrency market.
The inflow of funds into the spot Ethereum ETF is usually seen as an important signal that institutional investors are optimistic about Ethereum, especially with the advancement of Ethereum 2.0 and other technological upgrades, the market may welcome a new round of upward momentum.
Additionally, like previous years, the crypto market is also experiencing a wave of correction during this Christmas season. The crash on December 20 and the subsequent brief rebound seem to have come to an end, and the current oscillating adjustment presents a slow pace, which is expected to continue until the end of Christmas.
Has the bull market ended?
The answer is no. The interest rate reduction cycle has just begun, and 2025 is approaching, while Trump has not officially taken office yet. Before Trump comes to power, a bull market cannot end; it can even be said that the real climax is just beginning.
Will there be a bottom-fishing opportunity after Christmas?
Personally, I think this is a good opportunity unless unexpected events occur. Currently, I suggest maintaining a light position and taking short-term swing operations. After Christmas, many investors have already started to position themselves. If even the Trump family is engaging in bottom-fishing, what is there to worry about?
New round of ambush selection sector!
DeFi will still be the best speculation point for the new round of market trends. DeFi is still a concept in the crypto market that is relatively easy to leverage funds, as the market needs liquidity, and DeFi is the easiest place to realize liquidity expansion. The choices of the Trump family concept are basically centered around some mature DeFi projects in the Ethereum ecosystem.
LINK AAVE ENA, etc., the mainstream projects have not shown obvious increases, and basically, only UNI, LDO, and ENS [these three are very likely to be newly added].
Compared to some older projects, personally, I am more inclined to ambush new DeFi projects entering the market, with the first choice being COW, used by the Trump family for buying; a new borrowing protocol MORPHO; Aero is touted as the UNI of the BASE chain [currently the trading volume is not very good, worse than COW].
Other DeFi projects within the SOL ecosystem that are still worth watching.
JUP [Liquidity release and provision]
PYTH [Oracle service provider]
JTO [Mainly liquidity provision]
The main reason for focusing on the SOL ecosystem is still the grayscale SOL spot application [currently most likely XRP and SOL will pass].