Christmas was peacefully spent last night, and unexpectedly, the market began a slight adjustment this morning. The US stock market will open normally tonight, and we will know whether the funds return by looking at tonight's situation. Currently, during Asian hours, the risk-averse sentiment is still quite high, so tonight is a key point. You need to know what conditions are required for a market reversal upwards. Especially during the first four trading days before Christmas, the Bitcoin ETF was in a state of outflow, totaling $1.5 billion. This means that if no more positive news appears, there may still be a phenomenon of funds flowing out tonight. The outflow of ETFs indicates the risk-averse sentiment of off-exchange funds, so tonight is very crucial. Whether we can reverse the outflow of funds is the key. The current adjustment and decline are merely due to part of the funds being unwilling to bet on tonight's data, grabbing the last window for risk aversion before the US stock market opens. However, this type of market has no significant impact on long-term holdings and short-term swings; ultimately, only the retail investors operating contracts will be hurt!
Recently, there have been reports in the market that the EU plans to delist USDT. Many friends have come to ask if this will affect the crab boss and whether they should exchange USDT for other stablecoins. When this news broke, many people who had been undecided began to waver, fearing that the market would experience a black swan event due to this. However, it is important to understand one point: when news comes out, first understand the fundamentals. What exactly is the situation with the EU delisting USDT? You must understand that the EU delisting USDT is just a matter for its own virtual currency exchanges and has nothing to do with global exchanges like Binance, OKEx, or Coinbase. So the only people ultimately affected are those using EU exchanges, who may not be able to trade with USDT in the future. In summary, there is fundamentally no impact at all. This news actually came out in October, so why are people making a huge fuss about panic at this time? The fundamental reason is that last week's decline affected their mindset. So far, the market has not finished adjusting, which is entirely due to the US market being closed and funds flowing out. Therefore, many people do not see the bad news and then see that the market has not risen, leading them to waver in their mindset. So in the future market, I still advise everyone to understand the underlying logic of the news. Just like buying altcoins, if you don't understand the news, what is the logic behind the altcoins you are buying? Don't be led by market emotions, and don't trade emotionally. Only by being steady can we stand firm in the market and seize real opportunities to make money.
In fact, we can recently feel quite clearly that both the market liquidity and trading volume of Bitcoin have decreased. However, it is important to note that after the holiday ends, there is usually an influx of funds. In addition to individual retail investors, institutions are also making year-end purchases because fund managers will complete portfolio adjustments before the year ends and before the Christmas holiday. This adjustment will involve some turnover, and some assets will be sold for profit. At the end of the year, dividends need to be distributed to shareholders, so many assets will be sold. However, after the new year begins, which is after the Christmas holiday, fund managers will adjust their portfolios again and choose some quality assets for their clients. As we all know, institutions often deal with tens of millions or even billions of funds; their movements can significantly impact the entire market. Therefore, after the Christmas holiday, with institutional adjustments and historical data, it is highly likely that US stocks and Bitcoin will rise.
It is well known that after taking office, we will see the favorable comments about cryptocurrencies from the old man and the Zheng policy that will influence the market, which is likely to develop positively. So for now, just hold patiently.
FTX's $16 billion repayment
This is the most recent news. The repayment is scheduled to start on January 6, with an estimated $16 billion to be repaid within 60 days. Such a massive influx of funds into the market could be a key signal for a comprehensive rebound in the cryptocurrency space or even a step up.
Ethereum Staking ETF
The Ethereum staking feature is expected to be launched after Trump takes office, which will enhance Ethereum's attractiveness and is expected to attract a large number of buyers. Staking applications are likely to appear in January, and before the Christmas holiday, the market has already seen an influx of $131 million in buying funds, indicating that institutions are also looking forward to the opening of staking.
Ethereum Prague Upgrade
Looking back at past Ethereum upgrades, basically every time there is an upgrade, its price will experience a significant upward wave within three months. According to historical patterns, this upgrade is expected to have results in January; however, it is uncertain whether there will be delays. Each upgrade of Ethereum tends to be delayed, but it does not affect the arrival of the final major upward wave.
Seeing these messages, I hope everyone does not waver in their expectations for the cryptocurrency world. The adjustments we encounter are all temporary. If US stocks close higher tonight and ETFs start to flow in, you will thank yourself for not cutting losses during the downturn!
Christmas was peacefully spent last night, and unexpectedly, the market began a slight adjustment this morning. The US stock market will open normally tonight, and we will know whether the funds return by looking at tonight's situation. Currently, during Asian hours, the risk-averse sentiment is still quite high, so tonight is a key point. You need to know what conditions are required for a market reversal upwards. Especially during the first four trading days before Christmas, the Bitcoin ETF was in a state of outflow, totaling $1.5 billion. This means that if no more positive news appears, there may still be a phenomenon of funds flowing out tonight. The outflow of ETFs indicates the risk-averse sentiment of off-exchange funds, so tonight is very crucial. Whether we can reverse the outflow of funds is the key.
The current adjustment and decline are merely due to part of the funds being unwilling to bet on tonight's data, grabbing the last window for risk aversion before the US stock market opens. However, this type of market has no significant impact on long-term holdings and short-term swings; ultimately, only the retail investors operating contracts will be hurt!
Recently, there have been reports in the market that the EU plans to delist USDT. Many friends have come to ask if this will affect the crab boss and whether they should exchange USDT for other stablecoins.
When this news broke, many people who had been undecided began to waver, fearing that the market would experience a black swan event due to this. However, it is important to understand one point: when news comes out, first understand the fundamentals. What exactly is the situation with the EU delisting USDT?
You must understand that the EU delisting USDT is just a matter for its own virtual currency exchanges and has nothing to do with global exchanges like Binance, OKEx, or Coinbase. So the only people ultimately affected are those using EU exchanges, who may not be able to trade with USDT in the future.
In summary, there is fundamentally no impact at all.
This news actually came out in October, so why are people making a huge fuss about panic at this time? The fundamental reason is that last week's decline affected their mindset. So far, the market has not finished adjusting, which is entirely due to the US market being closed and funds flowing out. Therefore, many people do not see the bad news and then see that the market has not risen, leading them to waver in their mindset.
So in the future market, I still advise everyone to understand the underlying logic of the news. Just like buying altcoins, if you don't understand the news, what is the logic behind the altcoins you are buying? Don't be led by market emotions, and don't trade emotionally. Only by being steady can we stand firm in the market and seize real opportunities to make money.
In fact, we can recently feel quite clearly that both the market liquidity and trading volume of Bitcoin have decreased. However, it is important to note that after the holiday ends, there is usually an influx of funds.
In addition to individual retail investors, institutions are also making year-end purchases because fund managers will complete portfolio adjustments before the year ends and before the Christmas holiday. This adjustment will involve some turnover, and some assets will be sold for profit.
At the end of the year, dividends need to be distributed to shareholders, so many assets will be sold. However, after the new year begins, which is after the Christmas holiday, fund managers will adjust their portfolios again and choose some quality assets for their clients. As we all know, institutions often deal with tens of millions or even billions of funds; their movements can significantly impact the entire market.
Therefore, after the Christmas holiday, with institutional adjustments and historical data, it is highly likely that US stocks and Bitcoin will rise.
Finally, let me recharge your faith:
Trump's inauguration on the 20th
It is well known that after taking office, we will see the favorable comments about cryptocurrencies from the old man and the Zheng policy that will influence the market, which is likely to develop positively. So for now, just hold patiently.
FTX's $16 billion repayment
This is the most recent news. The repayment is scheduled to start on January 6, with an estimated $16 billion to be repaid within 60 days. Such a massive influx of funds into the market could be a key signal for a comprehensive rebound in the cryptocurrency space or even a step up.
Ethereum Staking ETF
The Ethereum staking feature is expected to be launched after Trump takes office, which will enhance Ethereum's attractiveness and is expected to attract a large number of buyers. Staking applications are likely to appear in January, and before the Christmas holiday, the market has already seen an influx of $131 million in buying funds, indicating that institutions are also looking forward to the opening of staking.
Ethereum Prague Upgrade
Looking back at past Ethereum upgrades, basically every time there is an upgrade, its price will experience a significant upward wave within three months. According to historical patterns, this upgrade is expected to have results in January; however, it is uncertain whether there will be delays. Each upgrade of Ethereum tends to be delayed, but it does not affect the arrival of the final major upward wave.
Seeing these messages, I hope everyone does not waver in their expectations for the cryptocurrency world. The adjustments we encounter are all temporary. If US stocks close higher tonight and ETFs start to flow in, you will thank yourself for not cutting losses during the downturn!
