The weekend began with Bitcoin rebounding above 98,000. The American holiday will end next week, and last night's performance in the U.S. stock market was quite good, with MSTR even rising significantly. We can look forward to next week, and it's getting closer to Trump taking office on January 20. The market is all anticipating that Trump will fulfill his promises after taking office, so the first quarter of 2025 looks promising. If Trump starts making statements or implementing actual policies after taking office, Bitcoin and Ethereum may still have the potential to reach new highs.
Many young people believe that Trump's taking office means that the good news will turn into bad, but that's not the case. Trump's taking office is based on the rules of the GJ, and his position is entirely reliant on his own strength. We won't elaborate much on this, as we can't discuss ZC. The only concern now is that the Biden team might create some negative news before leaving office, which is why everyone should never go all-in at any time. Black swan events are unpredictable, but we must keep them in mind and plan for the worst in everything we do. To get back to the point, if Trump's statements and policies post-takeover are implemented, then it might be time to consider potential negatives. However, if there are positive messages about cryptocurrencies from his statements, it will surely lead to a spike.
So at this stage, we are all waiting for Trump to take office, expecting positive statements about cryptocurrencies. Currently, it's the weekend with low liquidity, but Friday's sentiment was good, so a broad market increase over the weekend is likely not an issue. Looking at SOL, Bitcoin is at 98,000, Ethereum at 3,600, and SOL has also seen a wave of recovery, with many altcoins following suit with a 10% increase. Although not much, the sentiment has improved somewhat.
There are also expectations for SOL moving forward; the approval rate for SOL's ETF on foreign prediction platforms has already reached 80%. Previously, the Crab Boss mentioned that SOL around 200 or below can be accumulated. January 25 marks the first review deadline for SOL, and current price trends are relatively stable. Those who have accumulated should hold on well; the initial positioning for WIF was also for this reason. In fact, the price recovery of SOL is somewhat related to the $16 billion compensation from FTX. Although this is expected within 60 days, the Crab Boss previously mentioned that after the FTX collapse, FTT and SOL were the most severely impacted. The founder of FTX held a large amount of SOL and sold some to pay debts, but now that the compensation funds are known, once the money is released, it will flow into SOL as well.
Pay attention to the progress of SOL's spot ETF and Ethereum's staking ETF after the new SEC chairman takes office on January 20.
Since the adjustment started two days before Christmas, most altcoins have basically returned to relative bottoms. So as we face a potential market rebound, don't forget the tough days. One important point to remember is to take profits on part of your positions, even if it's 10% or 20% for those with tight positions, as no one knows when a black swan event might occur. Those who have experienced March 12 and May 19 surely understand the importance of cashing out at high positions.
If you haven't experienced March 12 and May 19, then from the recent adjustment in the market, I hope you understand the safety of taking profits from part of your positions. Always keep a portion of USDT so that during market adjustments, your positions can be flexible, even picking up distressed assets. Currently, Ethereum needs to stabilize around 3,550 to start a new round of increases. If you haven't bottomed out between 3,450 and 3,550, the recent stabilization at 3,550 presents opportunities for altcoin limit orders. The inflow of ETF funds has supported Ethereum, just like after this bull market for Bitcoin, it may not decline as much as in previous bear markets.
The main reason is that more and more institutions are getting involved, and Bitcoin's volatility will relatively narrow. Currently, besides Bitcoin, Ethereum is the only other option for those Wall Street institutions to purchase. So, when Bitcoin is hard to buy, funds will naturally overflow into Ethereum, boosting its rise. Moreover, with the Ethereum upgrade in March, the upcoming period is a good opportunity to accumulate Ethereum and Ethereum staking series at lower prices!
Finally, let me reiterate the positive outlook for the first quarter, which is also to recharge everyone's faith:
A broad increase in altcoins is likely already on the way, for example:
Yesterday, a large amount of USDC was minted, with the USDC Treasury minting an additional 50 million USDC on the Ethereum chain.
Yesterday, the total net inflow for Bitcoin spot ETF was $908 million, and for Ethereum spot ETF, it was $58.7878 million.
MicroStrategy's CEO plans to issue $2 billion in preferred stock to increase Bitcoin holdings, preparing to buy $2 billion worth of Bitcoin in the first quarter.
As of January 3, the FTX debtor restructuring plan has taken effect, and the first batch of customers will receive refunds within 60 days.
Trump will officially take office as President of the United States on January 20, 2025.
March Ethereum upgrade is a positive factor.
Combining the above news with the current market sentiment, we are very optimistic about the performance of altcoins in the first quarter.
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