Early this morning, Bitcoin hit a new all-time high, reaching a peak of $76,400. Ethereum also began to see a rebound, reaching a high of $2,800.
Altcoins have also seen a surge, with an average increase of around 20%.
Image source: WeChat official account Peipei Suoha communication attention
Yesterday, after the U.S. stock market opened, all three major indexes opened high, especially the S&P 500 and Dow Jones, which gapped up directly.
Coinbase and MicroStrategy stocks opened with increases of 30% and 15%, respectively.
All spot ETFs also gapped up, with BlackRock's spot Bitcoin ETF trading volume exceeding $4.1 billion yesterday, setting a new all-time high.
This indicates that American investors have a very positive attitude towards Trump's administration, and market sentiment is very high, which further drives up Bitcoin.
Will there be a major pullback after the U.S. elections?
I believe that even if there is a short-term pullback, the magnitude of the decline won't be too large, and after the adjustment, the market will likely continue to rise.
Historically, the favorable effects brought by elections usually last for three months. Moreover, the climax of the halving cycle often overlaps with the election time.
Trump will officially hand over power on January 20 next year, and it will take one or two months after he takes office to truly start implementing policies.
During this time, the market will be full of expectations for Trump's future administration.
At least until January 20, 2025, before he is sworn in, everyone's mood will be very high, so there shouldn't be too many issues with the expectation of rising prices.
What should we focus on after the election?
After the election, we need to pay close attention to U.S. monetary policy, especially whether the Federal Reserve will continue to cut interest rates.
As it stands, the Fed cutting rates by 25 basis points in November is almost a done deal.
According to CME observations of the Federal Reserve, the probability of the Fed cutting rates by 25 basis points in November is as high as 98.1%.
Additionally, we should pay attention to unemployment and inflation data. As long as there is no economic recession or black swan events, the fourth quarter of 2024 should be relatively stable.
From Christmas to January 20, the market may experience some fluctuations. Especially during the Christmas holiday starting from mid-December, there may be capital outflows.
However, when Trump officially takes office on January 10, the market will welcome a wave of favorable news.
So what sectors should we focus on next?
I think in the three months after the election, the opportunities to make money will mainly focus on Bitcoin, DeFi, Sol, meme coins on Solana, and projects related to Musk and Trump.
As the leader and barometer of the market, Bitcoin will start to be expected to become a strategic reserve asset of the United States after Trump takes office.
Currently, the Republican Party has taken control of both the House and Senate, making Trump one of the most powerful presidents in American history.
Moreover, this Congress is the most supportive of cryptocurrencies in history, with 247 candidates supporting crypto winning seats in the House of Representatives.
Once this policy is truly implemented, other countries will follow suit, which will provide greater imagination for Bitcoin's rise.
In addition to the continued interest rate cuts by the Federal Reserve and the ongoing buying of Bitcoin spot ETFs, the increase in Bitcoin during this bull market may exceed everyone's expectations.
The DeFi sector may be the first beneficiary once the policies are lifted.
The DeFi sector has surged significantly in recent days, with Uni, Aave, and Ldo all rising by over 30%. Therefore, DeFi can also be said to be the biggest beneficiary of Trump's policies.
Meme coins will be one of the mainstream narratives of this bull market.
Due to Musk's influence, DOGE may trigger another meme craze, and meme coins on Solana may become a new gathering place for large funds.
We can focus on projects in the Sol ecosystem; I have also been doing some project screenings recently.
So overall, a rampant bull market has already begun. We just need to understand the trend, follow the trend in investment, and be the 'pig' standing on the wind.
