Last week, the FUD information from the Federal Reserve combined with holiday effects drained liquidity and caused a collective drop. After a week or two of turnover and market digestion, along with the end of the holidays, confidence is recovering, and funds are gradually coming back into the market. Many altcoins have begun to oscillate upward again, some have started to rally in advance, and the overall trend of altcoins has not yet unified but has generally started to complete bottom repairs.
BTC is currently hovering between 95,000 and 100,000, with small increases every few days, but it feels like it hasn't stabilized yet. However, there is a high possibility of breaking the 100,000 barrier next week. So, if you see it drop, it might be a good time to buy back. Remember, don't rush to chase highs or foolishly wait in empty positions and regret later.
In short, the future market still looks to BTC to recover the 100,000 mark, ETH to reach 4,000 points, and then various altcoins will soar. Those who boldly buy the dip will reap profits. In the short term, I personally think there will be another fluctuation, then a second wave of the main rising trend will begin in mid to late January, with some altcoins possibly reaching early February.
Currently, many altcoins are still at the bottom range. For spot trading, there has been ample time for everyone to dollar-cost average from December 20th to today. If there is another correction soon, it may be the last good entry opportunity.
Outlook for the future market: Will Bitcoin reach the 100,000 mark again?
This wave of bull market is fundamentally different from the past and cannot be operated using previous methods. The market generally believes that Q1 will be a bull market. January is the main stage for Ethereum and altcoins. Ethereum's exchange rate skyrockets while BTC.D plummets. We will see a rapid increase in altcoins. At this time, we cannot fantasize; I believe that when we feel it can't rise anymore, we must withdraw. Otherwise, it will be like 2024, a year of losses.
Many significant events are expected to occur in the crypto space in 2025, with more places announcing Bitcoin as a strategic reserve; the advancement of regulatory legislation in the U.S.; the restart of FTX 2.0, etc. Any one of these could trigger the bull market of 2025. The interest rate environment this year is better than in 2024. Although it’s difficult to return to the previous low-interest-rate era, it will at least return to a neutral interest rate. The subsequent bull market will likely be larger and more prolonged than previous ones!
In the short term, we still expect whether Trump will fulfill his promises after taking office, so the first quarter of 2025 looks relatively optimistic. If Trump starts making speeches or implementing practical policies after taking office, Bitcoin and Ethereum will still have the potential to reach new highs.
Speaking of altcoins, the market hasn’t had much excitement recently, and funds have started flowing into AI sectors on-chain. As the market recovers, these funds will gradually return to the secondary market. With the end of the holiday in the U.S. next week, liquidity in the market will begin to recover. Before Trump takes office, significant corrections are not expected. Altcoins are likely to have several times the opportunity for growth in the first quarter, making now an excellent time to layout.
Overall, the current market situation is changing rapidly. Maintain a keen sense of smell, seize opportunities, and you can win a place in this bull market!
How can we seize opportunities in this bull market?
On the 20th of this month, the understanding king will take office, and the tokens related to it will definitely be hyped this month, so everyone can pay close attention. Other severely depressed coins are also beginning to rebound, with rebounds generally exceeding 30%. In a bull market, everyone should be more patient. As long as you dare to buy the strong coins when they drop, holding them for a while will basically make you money.
But also be aware that starting two days before Christmas, most altcoins have returned to relatively low points, so when we face a rebound in the market, don't forget the days of being beaten. One important thing to remember is to take some profits and close part of your positions. Even 10% to 20% reduction is necessary for those with tight positions because no one knows when the black swan expectations will be released. Those who have experienced 312 and 519 definitely know the importance of cashing out at high positions.
Overall, the current market situation is changing rapidly. Maintain a keen sense of smell, make good plans, seize opportunities, and you can win a place in this bull market!
The recovery of the market shows the profit effect of altcoins once again! What strategy should be used to navigate the future market?
FTX compensation is on the way, and the next focus can be on the layout of Trump-related Musk series concept tokens. There will definitely be a new round of market explosion around the time of Trump’s official inauguration. Next is the Wall Street institutional concept series, with Grayscale Fund being the first. Without any accidents, it will likely start with Grayscale’s violent move on ZEN, and the violent rotation in the altcoin sector will soon begin.
In addition, the following sectors have gradually regained popularity recently:
DeSci: This is a very hot field recently.
AI Sector: The AI field is also rising in the cryptocurrency market.
SUI Ecosystem: The SUI ecosystem is an emerging blockchain project that is gaining more and more attention.
RWA and DePIN: These two directions are also slowly emerging.
If you are pursuing high risk and high returns, these leading sectors with strong coins are key targets to lay low!
Of course, if you are pursuing low risk and high returns, you can consider laying low for Ethereum. Before the 20th, Ethereum will likely test the 4,000 USD mark, and next is to lay low for Bitcoin looking at the 103,000~105,000 range.
But also remember that surviving is always more important than making a profit! Be a little less greedy and have a little more room to breathe! If you live long enough, there will naturally be opportunities of all sizes!