The cryptocurrency market has truly been tumultuous these past two days, leaving people dazzled.
The previously mentioned Microsoft shareholder meeting rejected the investment proposal for Bitcoin, and with the announcement of Google's quantum chip Willow, these news have greatly impacted the market. A large amount of leverage was forcibly liquidated, and health has returned to normal. However, the net inflow of Bitcoin ETFs remains strong. Last night, the US November CPI data came out and was roughly in line with expectations; the funding rate dropped to 0, and Bitcoin surged once again above 100,000 USD.
Currently, altcoins face challenges such as the continued unlocking of VC institutions, stagnation in the ecosystem, and unresolved fundamentals due to large market caps. This recent rebound driven by leveraged funds has come quickly and will leave just as quickly.
What is the subsequent direction of the market?
Let's state the results first: the subsequent market trend is firmly bullish, and the current market is very healthy.
1. Currently, MSTR and MARA continue to buy coins in bulk at a cost above 90,000, forming strong support for BTC prices, expected to last at least until the new government takes office at the end of January.
At the end of October, it was announced that a total of 21 billion USD in stock financing would be used, with 2 billion USD used weekly. Currently, there is still 9 billion USD left. Based on the usage rate of 2 billion USD per week, it is expected to last for 4-5 weeks. The balance of stock ATM financing will be exhausted just in time to support until the new government takes office on January 20.
2. Recent sharp leverage liquidations have restored the market to a healthy state.
On December 6 at 6:28 AM, Bitcoin spikes to around 90,500, and leveraged long positions were liquidated at around 102,000; on December 10 at 5:10 AM, Bitcoin spikes to around 94,000, and altcoin leverage was liquidated; the market has now recovered from a frenzied state to a healthy state, with the funding rate for long positions in Bitcoin dropping from over 100% to about 10%, and health has returned to normal.
Moreover, the net inflow of Bitcoin ETFs remains strong. Last night, the US November CPI was also in line with expectations, and the funding rate dropped directly to 0. The market is lighter, and the trend can be pulled.
What else is worth paying attention to recently?
This week is crucial on the macroeconomic level. The CPI was announced last night, and the PPI will be released tonight at 9:30.
Last night, the US November CPI was also in line with expectations. Currently, inflation is expected to rise, and even if inflation data slightly increases, it will not affect the Federal Reserve's predetermined path for rate cuts in December. The probability of the Federal Reserve cutting rates by 25 basis points next week has risen to over 96%. It seems that a rate cut in December is stable, but tonight's PPI data still needs to be monitored.
A continuous 72-hour decline is also rare in history, so the possibility of a short-term rebound remains high. Just like a bowstring that has been pulled tight, it is bound to have strong rebound power.
In the coming time this month, there are both positive and negative factors, such as whether MSTR will be included in QQQ, the effectiveness of FASB, the Federal Reserve's interest rate meeting, the Bank of Japan's interest rate meeting, and Christmas, etc.
In January 2025, Trump will take office. News yesterday indicated that Trump hopes to bring BTC to 150,000 USD during the early stages of his term. So, will ETH be able to ride along with altcoins?
In addition, expectations for policy easing are favorable, while downside risks include concerns over interest rate cuts and economic conditions. However, the interest rate meeting next month is on January 29, and the official inauguration is on January 20.
After the recent sharp decline, some recovery has gradually occurred. The previous sharp rises did not decline much and present hanging order opportunities.
What should be done at this stage?
Although various coins are flying in the bull market, you should know that without a proper plan, it is easier to lose money in a bull market than in a bear market. If you want to earn more, let me tell you what you should do!
First: Establish a good position management plan and strictly execute it.
Second: Entry and exit should follow your own trading system.
Third: The tokens you buy should have your own research or be based on reliable in-depth research articles.
Fourth: Investment often requires having your own expectations, knowing what you want. For example, if I want 25 times the return this time, then when the time comes, if it seems to keep rising, I should take most of the profits to secure them and let the rest of the profits run!
Fifth: Whether you are trading contracts or leveraging, technology is one aspect, but you must also understand where your risks lie. Don't only focus on profits. Therefore, do less contract trading.
In summary, to do well in trading and make big profits, you must have a reasonable position management plan and a strict trading system; only then is it possible to make money.
The cryptocurrency market has truly been tumultuous these past two days, leaving people dazzled.
The previously mentioned Microsoft shareholder meeting rejected the investment proposal for Bitcoin, and with the announcement of Google's quantum chip Willow, these news have greatly impacted the market. A large amount of leverage was forcibly liquidated, and health has returned to normal. However, the net inflow of Bitcoin ETFs remains strong. Last night, the US November CPI data came out and was roughly in line with expectations; the funding rate dropped to 0, and Bitcoin surged once again above 100,000 USD.
Currently, altcoins face challenges such as the continued unlocking of VC institutions, stagnation in the ecosystem, and unresolved fundamentals due to large market caps. This recent rebound driven by leveraged funds has come quickly and will leave just as quickly.
What is the subsequent direction of the market?
Let's state the results first: the subsequent market trend is firmly bullish, and the current market is very healthy.
1. Currently, MSTR and MARA continue to buy coins in bulk at a cost above 90,000, forming strong support for BTC prices, expected to last at least until the new government takes office at the end of January.
At the end of October, it was announced that a total of 21 billion USD in stock financing would be used, with 2 billion USD used weekly. Currently, there is still 9 billion USD left. Based on the usage rate of 2 billion USD per week, it is expected to last for 4-5 weeks. The balance of stock ATM financing will be exhausted just in time to support until the new government takes office on January 20.
2. Recent sharp leverage liquidations have restored the market to a healthy state.
On December 6 at 6:28 AM, Bitcoin spikes to around 90,500, and leveraged long positions were liquidated at around 102,000; on December 10 at 5:10 AM, Bitcoin spikes to around 94,000, and altcoin leverage was liquidated; the market has now recovered from a frenzied state to a healthy state, with the funding rate for long positions in Bitcoin dropping from over 100% to about 10%, and health has returned to normal.
Moreover, the net inflow of Bitcoin ETFs remains strong. Last night, the US November CPI was also in line with expectations, and the funding rate dropped directly to 0. The market is lighter, and the trend can be pulled.
What else is worth paying attention to recently?
This week is crucial on the macroeconomic level. The CPI was announced last night, and the PPI will be released tonight at 9:30.
Last night, the US November CPI was also in line with expectations. Currently, inflation is expected to rise, and even if inflation data slightly increases, it will not affect the Federal Reserve's predetermined path for rate cuts in December. The probability of the Federal Reserve cutting rates by 25 basis points next week has risen to over 96%. It seems that a rate cut in December is stable, but tonight's PPI data still needs to be monitored.
A continuous 72-hour decline is also rare in history, so the possibility of a short-term rebound remains high. Just like a bowstring that has been pulled tight, it is bound to have strong rebound power.
In the coming time this month, there are both positive and negative factors, such as whether MSTR will be included in QQQ, the effectiveness of FASB, the Federal Reserve's interest rate meeting, the Bank of Japan's interest rate meeting, and Christmas, etc.
In January 2025, Trump will take office. News yesterday indicated that Trump hopes to bring BTC to 150,000 USD during the early stages of his term. So, will ETH be able to ride along with altcoins?
In addition, expectations for policy easing are favorable, while downside risks include concerns over interest rate cuts and economic conditions. However, the interest rate meeting next month is on January 29, and the official inauguration is on January 20.
After the recent sharp decline, some recovery has gradually occurred. The previous sharp rises did not decline much and present hanging order opportunities.
What should be done at this stage?
Although various coins are flying in the bull market, you should know that without a proper plan, it is easier to lose money in a bull market than in a bear market. If you want to earn more, let me tell you what you should do!
First: Establish a good position management plan and strictly execute it.
Second: Entry and exit should follow your own trading system.
Third: The tokens you buy should have your own research or be based on reliable in-depth research articles.
Fourth: Investment often requires having your own expectations, knowing what you want. For example, if I want 25 times the return this time, then when the time comes, if it seems to keep rising, I should take most of the profits to secure them and let the rest of the profits run!
Fifth: Whether you are trading contracts or leveraging, technology is one aspect, but you must also understand where your risks lie. Don't only focus on profits. Therefore, do less contract trading.
In summary, to do well in trading and make big profits, you must have a reasonable position management plan and a strict trading system; only then is it possible to make money.