Today, the market continues to consolidate sideways.
Bitcoin is fluctuating around $100,000, while Ethereum is fluctuating around $3,930.
Among altcoins, the strongest performers are the AI meme and DeFi sector projects, with LINK, AAVE, and VIRTUAL showing counter-trend rises.
Someone asked if Bitcoin will drop significantly during Christmas.
I think the possibility of a big drop is very small now.
The recent drops have all been liquidation events triggered by short squeezes.
From the contract map, it can be seen that wherever the columns are numerous, the main force will explode that side, which is very accurate.
It can be seen that the main force is washing out some leveraged and uncertain chips to prepare for the next wave of upward movement.
From a broader trend perspective, we are currently in the later stages of a bull market. The market is still looking forward to Trump fulfilling his campaign promises before he takes office on January 20.
As long as this consensus is not broken and there are no major negative news, Bitcoin will continue to maintain an upward trend.
From ETF data: yesterday, Bitcoin's spot ETF had a net inflow of $604 million, while Ethereum's spot ETF had a net inflow of $276 million.
This week, the inflow of Ethereum's spot ETF reached a new high.
This indicates that American institutions are increasing their buying of Ethereum, with new funds flowing into the Ethereum ecosystem.
Yesterday, Ethereum also experienced a rally; from the market perspective, it is about to break through resistance levels, and once it breaks through, it may aim for the previous high of $4,800.
The Trump family's funds bought ETH, LINK, and AAVE through the cow protocol, which also drove the rally of these projects.
This might be because they need projects in the Ethereum ecosystem to build infrastructure.
From this round of increases, it can be seen that the better-performing DeFi projects are mainly related to American politics and compliance narratives.
I feel that Ethereum may rise significantly because all DeFi projects are basically in the Ethereum ecosystem.
Currently, many large institutions still prefer Ethereum, such as Coinbase's Base chain.
Because Ethereum has comprehensive security advantages for DeFi, not only in terms of the decentralization of the network but also a large number of security cases, audits, and white hat resources, which are very important for DeFi and large institutions.
Yesterday, Trump stated in an interview that he will do great things in the cryptocurrency field.
He is also very concerned about the price of Bitcoin, hoping it can reach $150,000 in the early stages of his term.
Market expectations are high; we can see if Bitcoin can break $200,000 after Trump takes office next year.
Overall, I think the possibility of a significant drop in Bitcoin is low.
I can't find any reason to sell Bitcoin; at least I can wait until after President Trump's inauguration to see.
From the current trend, during Trump's four years in office, Bitcoin may enter a long bull market; I see it reaching $1 million.
Bitcoin is the only project suitable for heavy positions, with a large room for future imagination.
In terms of operating strategy, a barbell strategy can be used. Large position (80%) allocation: BTC, ETH, SOL; small position (20%) allocation for leaders and MEME.
If your capital is not large, it is recommended to focus, prioritize big over small, and not to diversify too much. You can concentrate your funds on BTC and MEME coins.
If you have a large amount of capital, you can diversify your investments across projects in AI meme coins, DeFi, RWA, and DePIN sectors.