The year 2024 is expected to be historic for the cryptocurrency market. From Bitcoin to Ethereum, from MicroStrategy to the Bitcoin reserve bills promoted by various states in the US, all are sending a strong signal: cryptocurrencies are no longer just speculative instruments; they are becoming mainstream in global investment and policy. The market is gradually warming up, players' confidence is returning, and digital assets are entering their 'golden age.'
First, let's take a look at CoinShares' report. This year, global inflows into digital asset investment products reached $44.2 billion, a number that not only sets a historical record but is also nearly four times higher than the peak in 2021. What does this mean? It signifies not only the influx of funds from players but also the increasing recognition and attention towards cryptocurrencies globally. Bitcoin's performance is particularly outstanding, with an inflow of $38 billion, showcasing its unique charm as 'digital gold.'
Now let's look at the latest developments from the Federal Reserve. According to CME's 'FedWatch' data, the probability of the Federal Reserve maintaining interest rates in January is 93.1%, which means the Fed will continue to adopt an accommodative monetary policy. As expectations for potential interest rate cuts by the Fed gradually warm up, funds in the market will flow toward higher-yielding assets, with cryptocurrencies naturally becoming an important target.
Additionally, as the US economy gradually warms up, players' confidence in risk assets will gradually strengthen, which is a key factor for more funds flowing into the cryptocurrency market. The market's optimistic sentiment is also gradually accumulating, and it is expected that Bitcoin and other digital currencies may see a larger increase in the near future.
In the US, especially at the state government level, the acceptance of Bitcoin is also continuously increasing. Dennis Porter revealed that there will be up to 20 'strategic Bitcoin reserve' bills proposed at the state level in the US. These bills, both in terms of policy promotion and market recognition, are accelerating the mainstreaming of Bitcoin. If these bills pass smoothly, they will drive more funds into the Bitcoin market and bring new supportive demand for Bitcoin.
Moreover, as more states push for Bitcoin reserve programs, the legal status and asset allocation of cryptocurrencies will gain greater recognition. Bitcoin, as an important strategic asset, is likely to become a significant part of the global financial system in the future.
Now let's take a look at MicroStrategy's performance. This enterprise software company has been purchasing Bitcoin for nine consecutive weeks, with its holdings reaching approximately $44.3 billion. Despite numerous voices about Bitcoin in the market, MicroStrategy remains committed to its 'Bitcoin strategy,' setting an example for other institutions and players. MicroStrategy not only buys Bitcoin through G-securities and debt financing but also plans to continue financing through perpetual preferred G, demonstrating the company's strong confidence in Bitcoin's future prospects.
From the market trend perspective, the predictions of CryptoQuant analyst Crypto Dan are also encouraging. He believes that the bull market starting in 2024 is likely to reach a cyclical peak in Q1 or Q2 of 2025. Although the end of the bull market may be accompanied by volatility, overall, the expectations for significant rises in Bitcoin and altcoins are still promising.
This analysis is highly consistent with the current market situation. With continuous inflows of funds, the rise of the cryptocurrency market has become an inevitable trend. Players should seize this rare opportunity and prepare for stronger market performance in the future.
The net inflow of Ethereum ETFs in the US yesterday was 35,400 coins, worth $129 million.
The net inflow of Bitcoin ETFs in the US yesterday was 9,951 coins, worth $979 million.
BTC: Bitcoin formed a 'small bullish line' yesterday, with slightly increased trading volume, indicating a slight advantage for bulls, and it stabilized above the 5-day moving average, showing strong short-term market support. From a technical indicator perspective, the MACD green bars continue to expand, indicating that short-term bullish momentum is strengthening, suggesting that there is still room for a rebound in the short term.
In summary, the continuous net inflow of ETF funds significantly supports market confidence. However, it is important to note that the current rebound is just that— a rebound, not a reversal. The upward momentum may weaken after reaching resistance levels, possibly leading to a return to a corrective phase.
ETH: Ethereum formed a 'spinning top' yesterday and is currently above the 5-day moving average. The short-term rebound has basically reached its target, and the rebound space above may be relatively limited. It is expected that there may be a certain degree of pullback in the future.
Altcoins: The altcoin market is currently quite flat, and the profit effect isn't very apparent. To profit, one still needs to rely on market sentiment to drive the market up. Although opportunities seem scarce at the moment, this also means that as soon as the market has a hotspot, a widespread surge in altcoins could explode. Patience is key; the overall market heat has not fully ignited yet, and a broad rise will still take some time.
Today's Fear and Greed Index: 78 (Extreme Greed) #BTC重返10万