Good evening, brothers and sisters! Recently, ETH's market performance has clearly outperformed BTC. According to data, the inflow of funds into U.S. Ethereum spot ETFs reached $349 million last week, and large institutions like BlackRock and Fidelity have also purchased 100,000 Ethereum, showing that market interest and confidence in Ethereum are gradually increasing. Since December, the inflow of funds into Ethereum spot ETFs has reached new highs, further demonstrating institutions' continued optimism toward Ethereum. Meanwhile, after a week of fund outflow, the Euro-Asian market has begun to see a return flow, particularly notable is the increase in funds in the U.S. market.
From the perspective of market capital inflow, on-site funds have increased by 1.2 billion, bringing the total market capitalization to 210.9 billion. The market value of USDT has also slightly increased by 2.4 million, indicating that market liquidity is stabilizing.
The market value of USDC has increased by 620 million, but trading volume has declined, indicating that major funds have flowed into Ethereum and related altcoins.
Advantages of Ethereum
Compared to Bitcoin, Ethereum's advantage lies in its broader decentralized application base, particularly its strong performance in the fields of smart contracts and DeFi. For example, BlackRock's RWA project is driving further development of the Ethereum ecosystem, and thus, institutions like BlackRock may continue to recommend Ethereum spot ETFs, which will positively impact market liquidity.
Additionally, the Prague upgrade in March 2024 is expected to bring more technological advancements to Ethereum. Especially for tokens related to Ethereum, such as ETH, SUSHI, and UNI, there may be significant market attention driven by the technological upgrade.
Additionally, large institutions on Wall Street, including BlackRock, Fidelity, and Grayscale, are expected to submit applications for Ethereum staking ETFs in January, which will undoubtedly further boost market sentiment and capital flow.
The relationship between Ethereum's rise and the altcoin season
In the cycle of the crypto market, the rise of Ethereum is usually a signal for the start of the altcoin season. However, historical data shows that the initiation of the altcoin season often requires strong rallies from Bitcoin as support.
For example, from November 2020 to May 2021, altcoins surged significantly around the Ethereum Berlin upgrade; from July to August 2022, due to the positive impact of the Ethereum Paris upgrade, the altcoin market rebounded.
Currently, Ethereum is performing strongly, but the real altcoin season needs a breakthrough rally from Bitcoin as a 'catalyst.'
Currently, Bitcoin's market sentiment has experienced a surge in November and a correction in December, and it is expected to further recover after the January holiday. Particularly with the potential impact of Trump possibly returning to office and related favorable policies, the market is expected to usher in a new round of increase.
In recent days, the battle between bulls and bears remains unresolved; everyone should be cautious of risks and operate carefully.
Currently, the market is highly volatile, with both bulls and bears still in contention, and the outcome remains undetermined. At this time, retail investors should be cautious about risks and operate carefully. Although the market seems calm now, there are actually undercurrents. The best strategy is to patiently wait and look for suitable opportunities to buy or enter the market. Trend trading is currently the best choice; consider buying only after a price breakthrough. If the price does not break through, the likelihood of a decline is also significant.
Recently, there have been no significant positive or negative events, liquidity is low, and trading volume is small. Everyone can focus on the market sentiment on January 1, especially the reaction from the U.S. market. The real return of liquidity is expected around January 6, and after the U.S. unemployment rate data is released on January 10, a new market trend may emerge.
Current strategy
At the peak of a bull market, the market is flooded with various positive news, and some bloggers' optimistic predictions can easily mislead retail investors, even leading them to borrow and leverage for investment. However, when the market crashes, these investors often find themselves in an inescapable predicament. Following the bull market is a bear market that lasts over a year, during which many investors frequently trade due to the unbearable quietness of the market, resulting in losing all profits made during the bull market, and even their principal.
Therefore, to make money in the cryptocurrency market in the long term, investors must possess deep market knowledge and self-discipline. Profits during a bull market often contain an element of luck rather than relying solely on skill. Investors not only need to be wary of market risks but also be cautious of those irresponsible 'mentors' who mislead them. In this unpredictable market, retail investors face many challenges. In the next strategic direction, I will lead everyone to target the lucrative opportunities in altcoins, especially those with high potential, where a 10-fold expected return is not a problem. If you want to make big money in the bull market, like and comment, and I will help you strategize for the entire bull market!
