Today marks a memorable day in crypto history. On December 5th, Bitcoin officially broke and stood firm above the $100,000 mark. Whenever fans and loyal followers ask me how high Bitcoin's bull market can go, my uniform reply has been $100,000. I didn't expect that by early December, this price level would already be breached.
At the current price level, you absolutely should not sell your holdings. If you have around 50,000-60,000 in BTC holdings, I recommend selling 20% of your position. Remember, we come to the crypto world to make money, not to just add funds for more positions. We must protect our profits, and then the remaining Bitcoin holdings could see a doubling or even more! The main reason Bitcoin was able to break the $100,000 mark today is because Powell spoke last night, openly stating that BTC is a competitor to gold, not the dollar. In simple terms, BTC is more like gold. Americans are now openly discussing Bitcoin, which is a good start, comparing Bitcoin to gold.
This statement has attracted a lot of buying volume from Americans.
Driven by key factors, Bitcoin surged past $100,000, and now ETH also only needs a similar positive news to challenge higher positions. We need to be patient. In my impression, there haven't been many instances of Americans publicly discussing BTC, and this is the first time BTC is being positively mentioned. This signifies that in the eyes of the top designers in the U.S. financial system, Bitcoin's status is already on par with gold. At this moment, Bitcoin's market cap is $2 trillion, while gold's market cap is about $20 trillion. If it rises nine-fold, Bitcoin's market cap will surpass gold. At that point, the price of a single Bitcoin will exceed $1 million. I believe this day will come, and it will happen within our lifetime, but we must always remain calm.
Let's talk about the most concerning issue for everyone right now: how will the market trend in the future?
First, after BTC broke $100,000, it initiated a clear blood-sucking market. Many altcoins, including Ethereum, did not follow, marking the beginning of a typical blood-sucking phase again. However, there is no need to panic; we have experienced such market conditions before. It is entirely possible to remain calm without trembling, and move with the market trends! Currently, BTC's $100,000 still counts as a small support. Even if it falls below $100,000, the major support at $98,000-$95,000 is still there. There is no need to worry about BTC's decline; just let Bitcoin stabilize or adjust, and liquidity can flow back into Ethereum and altcoins. After the last blood-sucking market of Bitcoin, the sequence for altcoin sectors was meme-defi-Ethereum-L2-AI-inscriptions.
So will the market after this blood-sucking phase follow the same sequence again?
We need to analyze and understand the current market's funding hotspots. First, let's look at Ethereum. In 2018, 2021, and the beginning of this year, Ethereum experienced some phases of widespread increase. However, this year's compensatory effect has been particularly poor, mainly due to the underwhelming response after the launch of Ethereum ETFs, along with some dispersion effects brought by staking projects and VC coins. Many king-level projects on Ethereum also launched with high market values, putting pressure on the remaining liquidity in the market. Over the past six months, they have experienced market cap repairs and price re-evaluations, and the situation has improved significantly. Currently, it has been in a net inflow state for eight consecutive trading days, indicating that some hot money in the market is slowly returning to Ethereum.
Now let's look at some altcoin sectors that need attention:
1. Meme
Meme remains the top choice among many altcoin sectors. Previously, memes had already shown a cycle, such as Doge, Pepe, Niero, WIF, including the recent new coins ACT and PNUT. As long as you were positioned low, you would still have a good return up to now.
So can these still present opportunities for those who haven't entered yet? Personally, I believe there are still chances, but don't expect it to be very low. For the support positions at this stage, place orders as necessary, enter when needed. After BTC's blood-sucking phase ends, memes will still be the brightest track in the market.
It is still recommended that everyone try to buy at lower positions if possible. For instance, Pepe, WIF, ACT, PNUT. These are not the tenfold profits we saw with Pepe last year; this year, our WIF at a cost of 2.1 has already yielded more than double profits, along with ACT and PNUT, which are also double profits. So for memes, if you can hold long at low positions, do so. You never know, the next tenfold profit could appear this year.
2. AI sector
Elon Musk's XAI artificial intelligence company has signed an order with NVIDIA for $1.08 billion worth of AI servers, which will be delivered in January. The timeline is tight and the task is heavy. BlackRock believes that the AI boom next year will continue to drive U.S. stocks and boost economic growth. From the statements of these crypto tycoons, it can be seen that the AI sector in cryptocurrency is likely to experience a resurgence after the downturn in the second half of this year.
The sectors of RWA, AI, SOL, meme, TON, and SUI will be unavoidable topics in the new round of the crypto market. They will be mentioned and hyped periodically; all we need is patience for the rotation.
Recently, there have also been news about AI, for example, OpenAI will conduct 12 live broadcasts in the next 12 days. If they release innovations similar to GPT-3.5 at the end of 2022 or Sora at the beginning of 2024, it may trigger another AI boom and potentially lead to a rise in the AI sector. Therefore, in the coming month, we can focus on projects in the AI sector!
3. U.S. related tokens
Projects that have closer relationships with the U.S. are more likely to rise. Today, Trump announced the appointment of the new SEC chairman, Paul Atkins, who is an advisor for the RWA project RSR and was also the reason for RSR's previous rise; this was once rumored but is now confirmed.
Coins that were heavily impacted by negative influences from the U.S. are more likely to rebound. There are already examples, such as XRP and BNB. This wave of growth resulted from a shift from a negative policy environment to a positive one. Trump and his team are absolutely America First, with intricate connections to American project teams.
To be more specific, the former refers to those with a strong resource network in the United States, potential candidates for ETFs, or teams that are entirely American with VCs being purely from the U.S. national team. The latter mainly consists of exchanges and projects, such as those previously heavily impacted by the U.S., like SOL, XRP, ADA, ICP, etc.
Lastly, I want to remind everyone:
If the altcoins rise significantly, especially when there is a main upward wave, please pay attention to appropriate profit-taking. The next two years will be the final cycle for many coins; they won't be able to last until the next cycle. In the next round of BTC halving, you can refer to previously strong-performing altcoins in bull markets, such as AXS.
Even if many coins are sold now, looking back, you might have missed the main upward wave, but it will still be a relatively high position. Once altcoin holders understand the logic of their bases, they won't sell at the bottom.
The short-term market will have significant potential volatility, especially since many coins have surged dramatically in the past few days, with many doubling in price. If your altcoins have surged 30% to 50% in a single day, please be cautious about managing your risks.
Finally, I want to share a saying that Mr. Crab often mentions: We come to the crypto world to make money, not to add funds for more positions. If it should be direct, it should be direct; don't hold back. Understand your purpose for being in the crypto world!
