In a press conference in December, Federal Reserve Chairman Powell stated that the Fed is not allowed to hold Bitcoin, which is related to the nature of Bitcoin and existing legal regulations. He believes Bitcoin is similar to gold, and the Fed cannot directly hold physical assets like gold. According to the Gold Reserve Act of 1934, gold is held by the Treasury, and the Fed can only hold gold certificates. The Fed can count gold certificates as financial assets on its balance sheet but must comply with the Federal Reserve Act of 1913.
Bitcoin's peak in 2024 is fixed at 108,366, and it can't go higher. This is not a pullback but a certain correction. There won't be any previous highs before the year ends. Accept the market adjustment; every December during Christmas is an adjustment period. I have always been thinking about how to avoid this. Initially, I wanted to catch a quick stretch after an interest rate cut, but last night Powell came out and talked a lot, leading to market panic and adjustment.
Adjustments are indeed needed, after all, from breaking the previous high of 73,000 to reaching 88,000 on November 11, and then peaking at 108,350 on December 17, the market has seen a rise of nearly 35 days. In the short term, do not buy the dip on altcoins, do not buy the dip, do not buy the dip. The maximum drawdown for early holders is 10%, stop loss, halve your position, take a good rest for a few days. A correction is not scary, but a prolonged decline is scary. After a prolonged decline, there will be a spike; hold on to your chips and do not buy unless you see at least three 4-hour spikes. This is only for buying spot; for those dealing with contracts, just hold off this month; no hurry to buy the dip, or you can go short.
The market outlook is bullish; Bitcoin's strategic reserves are held by the government, not the Federal Reserve.
So, when Trump takes office on January 20, BTC still has a considerable chance of becoming a national reserve. Even though Bitcoin has plummeted, when you look at the ETF, there is still a large net inflow of funds.
What does this indicate? It indicates that Wall Street sees this plunge as an entry opportunity, rather than an exit.
During this period, there may be some secondary bottom testing or something like that. Don't be afraid, these are all opportunities to get in. Once the adjustment is over, the crypto market will take off again!
You see: The Federal Reserve and the Japanese monetary policy meetings have all been announced, and the only thing left is the low liquidity Christmas and New Year. As mentioned last night, it's time to buy the dip.
As for what to buy on the dip, I've mentioned it before.
Looking forward to January to March next year. For stability, just buy BTC, ETH, SOL, BNB, etc. If you want to take a chance, but still be conservative, you can consider MEME like ACT, PNUT, TURBO, BOME, Babydoge, etc. Actually, I wanted to list that BSC cat from Binance, but I haven't studied it in detail yet.
For stability, you can buy some stable memes like DOGE, PEPE, WIF, etc.
Public chains, the old ones are SOL, XRP, and the new ones are SUI, OMNI, ALT, BB, LUMIA, SEI, APT, etc.
AI, WLD, IO, etc., actually IO has a bit of AI + Depin feel.
Of course, the above rankings are in no particular order. By the way, regarding certain very specific projects, I will elaborate later. If your holdings are not listed, it is not an issue with the project or with you, it’s my issue. I’m in a hurry to go out for dinner; I can’t check each token on Binance one by one; I’m lazy.
I only listed AI and MEME public chain tracks. It's not that DEFI or GAMEFI has no opportunities, but I just like those three hot tracks.
As for position allocation for buying the dip, it's up to the individual. Whether to split positions or go all in depends on your own trading habits.
