New Year Holiday Market Stability, Opportunities for Accumulation Emerge

As the weekend comes to an end, we are approaching the New Year celebrations on January 1 and the extended holiday until January 2. During this period, market activity will be limited, and the likelihood of significant fluctuations is low. However, for investors, this may be an excellent window to consider accumulating positions at lower levels.

1. Holiday Impact: Market Fluctuations Remain Mild

• Low Liquidity: The New Year holiday reduces market participation, leading to decreased activity from major funds and institutional investors.

• Weakened Risk Sentiment: The market tends to transition smoothly, providing clearer observation time for investors.

2. U.S. Rate Cut Cycle and Economic Strength

• Continuation of Rate Cut Cycle: Although the magnitude and frequency of rate cuts have slowed, the overall policy remains accommodative, providing liquidity support to the market.

• Economic Resilience: The U.S. economy shows strong performance, and the rate cut policy supports risk assets, especially mainstream assets in the cryptocurrency market.

3. Investment Recommendations

• Focus on Accumulation Opportunities at Low Points: The low volatility in the market during the holiday may provide investors with opportunities to accumulate positions in batches, particularly for quality assets that are technically at support levels.

• Monitor Subsequent Trends: After the holiday, it is essential to closely watch the market direction at the beginning of January, including macro data and institutional fund flows.

• Choose Mainstream Cryptocurrencies: Mainstream assets such as Bitcoin and Ethereum have higher risk resistance in a rate cut environment, making them suitable for medium to long-term positioning.

Summary:

The New Year holiday is a phase for market adjustment and observation, and the low volatility environment provides investors with opportunities for accumulation. With the continuation of the rate cut cycle and strong economic support, the market may gradually strengthen in January, but caution is warranted regarding short-term fluctuations caused by fund inflows after the holiday.