Over the weekend, Bitcoin primarily oscillated upwards, experiencing a consolidation to maintain a high level. Most mainstream trends are weaker than BTC, which is now about $1500 away from its previous high, feeling like it's on the verge of breaking new highs. Indeed, this morning it broke the historical high again.
I don't know how BTC, which has already reached new highs, will react after the US stock market opens tonight, given the favorable conditions that have already occurred. Hopefully, there will be significant buying due to ETF performance, meaning just don't crash BTC; the sentiment remains good.
Whether BTC rises violently or steps up gradually, as long as BTC remains strong and does not drop, it's a good time for the overall crypto market. Opportunities in the altcoin market will emerge during BTC's strong periods.
However, the altcoin season coming ≠ your coin's altcoin season coming ≠ you can make a fortune ≠ you can cash out after making money.
Plan ahead: what to buy, spot or contract, how to allocate positions, how to take profits as it rises, when to withdraw, if others' coins rise while yours don't, whether to hold or sell yours to chase others, and so on. Also, consider leaving some positions to prevent unexpected situations.
Currently, as long as BTC is still absorbing liquidity, the market can be considered healthy. Next, we can pay attention to Ethereum for a rebound, leading the altcoins to take off. Friends who have been out of the market can find opportunities to enter for a swing trade, but in such a market, swings can also easily backfire.
Another noteworthy thing: Trump's crypto asset project has bought new assets; mainly including top DeFi applications and RWA, purchasing ONDO, AAVE, and ENA tokens.
Recently, the Trump family's DeFi project World Liberty Financial has continued to expand its investment footprint. According to the latest news from the on-chain data monitoring platform Arkham, WLFI has recently completed multiple transactions involving various tokens such as ONDO, AAVE, and ENA, with a total holding value now exceeding $84.8 million.
In the early stages of a bull market, capital typically increases leverage through lending, enhancing liquidity and TVL. As the scale of capital grows, sector rotation will naturally unfold.
How to select quality altcoins next?
In the long term, with the new policies introduced after Trump's inauguration and the new SEC chair taking office, the market's upward trend can still be anticipated. Especially from January to February 2025, this period may welcome a new round of growth. If Bitcoin continues to attract capital inflows and mainstream coins like Ethereum gain momentum, altcoins may also experience a surge similar to early this year.
Institutional Investment Strategy
At present, institutional investors dominate market trends, especially the Trump family and some large institutions like BlackRock, which are very interested in DeFi and RWA projects. Following these large institutions, one can choose some of the coins they are investing in, such as AAVE, ONDO, and ENA, which are currently performing well. This can serve as a barometer with certain reference value, but retail investors should not follow institutional steps 100% because the capital sizes are not comparable.
Meme coins and AI-related coins
Of course, besides mainstream coins, meme coins are also a hot topic in the market. DOGE and FLOKI under Musk are worth paying attention to, especially since DOGE still has potential. If you feel DOGE's potential is limited, you might consider diversifying some small positions into meme coins like PNUT and NEIRO.
Additionally, AI-related meme coins may become the fastest-growing sector in the next wave, worth closely monitoring.
