Bitcoin reached a historical high of $99,588 over the past weekend, before beginning to fluctuate downward. Last evening, the price started to adjust significantly from $98,500, dropping to a low of $95,745 in the late night.
So will Bitcoin experience a major correction now?
I think there will be a demand for a market correction in the short term, but the extent should not be too large, as there is strong buying power below.
Currently, the issuance of stablecoins such as USDT and USDC continues to increase, with a total market cap surpassing $190 billion, setting a historical high.
In just November, an additional 15 billion dollars was issued, indicating that a large amount of new capital is flowing into the market.
The Bitcoin spot ETF continues to see net inflows, and coupled with the leverage effect of MSTR, these are driving Bitcoin prices to new highs.
Wall Street capital is a major driving force; currently, most Bitcoin holdings belong to U.S. Wall Street capital, which will promote this matter from their interest perspective.
Will Bitcoin become a U.S. reserve asset?
The trading price of Bitcoin has surged significantly, attracting international market attention, and there are rumors that the U.S. will promote Bitcoin as a national strategic reserve asset, causing related topics to heat up quickly. The new U.S. government's attitude and actions regarding Bitcoin and other cryptocurrencies, as well as their impact on the global financial landscape, deserve close attention.
The Economic Daily previously pointed out that although the incoming U.S. government shows a strong interest in cryptocurrencies, there are multiple 'gateways' that need to be crossed for Bitcoin to truly become a national reserve asset of the United States.
From a policy perspective, classifying Bitcoin as a strategic reserve asset requires a complex legislative process, involving coordination and balancing of interests among multiple regulatory agencies. Additionally, traditional financial institutions in the U.S., conservative lawmakers, and interest groups skeptical of digital assets may strongly oppose this, making implementation quite challenging.
From the market and regulatory perspective, Bitcoin prices often experience violent fluctuations, which diverge significantly from the strict requirements for stability as a national reserve. Furthermore, the U.S. cryptocurrency regulatory framework is inadequate, and establishing Bitcoin as part of the national reserve system requires a more complete legal framework.
Furthermore, U.S. media has pointed out that Bitcoin has never been a good inflation hedge—Bitcoin is more closely related to speculative stocks, 'rather than traditional inflation hedge tools such as gold or inflation-linked bonds.'
Bitcoin's inherent properties are unstable; once it becomes a strategic reserve asset, it may pose greater challenges to regulators and could alert other countries, exacerbating international financial friction. It remains uncertain whether the U.S. economy, eroded by high inflation for many days, can withstand the impact.
Musk's company has accepted 'Dogecoin payments'
Recently, Dogecoin designer Doge Designer, who frequently interacted with Musk on Twitter, posted: 'Musk's Boring Company accepts Dogecoin payments; you can book a ride and pay with Dogecoin.'
The Boring Company, founded by Musk, is a company focused on tunnel excavation and infrastructure development, aimed at alleviating urban traffic congestion by constructing underground tunnel systems. The company's main project, Loop, is similar to an underground high-speed transport system, operating with Tesla vehicles, hence it is referred to as 'Tesla in a tunnel.' The Vegas Loop, built at a cost of about $47.5 million, officially opened in mid-2021 at the Las Vegas Convention Center, with future plans to expand to airports, downtown, and other key locations.
After the news was released, Dogecoin's price surged rapidly, but it fell back on Monday, possibly related to profit-taking by large investors. According to on-chain tracking agency Whale Alert, a dormant address holding 740,283 Dogecoins, equivalent to about $320,091, was reactivated after 10.9 years.
3 potential coins with 20x growth
LTC
As an established representative in the crypto space, its growth rate rivals that of Bitcoin. Although Bitcoin dominates, LTC's potential cannot be ignored. With Grayscale launching an LTC ETF, LTC's future development prospects are even broader. If the U.S. positions Bitcoin as the core of crypto finance, LTC, Bitcoin, and SOL are expected to become early representatives.
However, if the U.S. continues to maintain hostility towards competitors like Ethereum, LTC and other coins will still take time to truly enter the mainstream. Nevertheless, LTC's breakthrough points the way forward, allowing us to continue pursuing wealth and dreams in this ocean of opportunities in digital currencies!
PENDLE
Pendle is a project that combines DeFi and LSDfi trends, dedicated to providing yield and trading protocol innovations for staked assets. The token economics of Pendle are closely related to the growth trend of LSDfi, especially with Ethereum's upgrades, Pendle will benefit from the expansion in this field.
Pendle's current TVL (Total Value Locked) has surpassed $6.2 billion, increasing more than 30 times since last November, with an annual income of about $30 million. The project has attracted investments from numerous top funds in the market, and its capital-raising capability is very strong. Due to its gradually decreasing token supply and permanent emission model, Pendle's long-term inflation rate remains around 2%, providing investors with relatively controllable risks.
Sol
Solana (SOL) demonstrates why it is one of the best cryptocurrencies to buy now before the December bull market. Thanks to its unique ecosystem and growing developer community, Solana excels in scalability and efficiency. Developers and investors appreciate its low transaction costs and ability to process hundreds of transactions per second. This solid foundation keeps Solana ahead, especially as more decentralized applications use its blockchain.
Solana stands out due to its ability to break key levels during the upcoming market peak. Its sustainability and innovation make it a good choice for long-term growth. With the December bull market approaching, Solana's technology, usage, and growth potential make it a strong candidate for any investment portfolio. Don't miss this cryptocurrency giant.
