Yesterday, January 6th, was the first official working day for Americans, and last night Bitcoin followed the trend of the US stock market, breaking through 100,000, with Bitcoin spot ETF inflows of 979 million USD, and Ethereum ETF inflows of 129 million USD. It can be seen that Americans are quite optimistic about the new year, with Bitcoin almost seeing an inflow of 1 billion USD in one day.
Firstly, Trump was officially recognized by Congress as the elected President of the United States last night, so this matter has settled smoothly. Next, the market expectations are all about various favorable expectations and strategic reserve plans for cryptocurrencies after Trump takes office. The current market is gradually entering the expected trend under Trump.
The second point is that the foreign holiday period that started on December 25th is nearing its end, and a lot of funds are flowing back into the market. MicroStrategy added 1,070 Bitcoins last night, which supports the data of returning funds. With financial backing and favorable expectations, the market naturally returns to a trend of hitting new highs.
Next, let's take a look at the indicator data BTC.D (market capitalization ratio) starting to rise, which also proves that the market trend from last night until now is indeed being dominated by Bitcoin. The altcoin speculation index is moving upwards, indicating that market sentiment has significantly returned after last night. I believe that if the altcoin index is above 60, altcoins will gradually start to perform. The doubling trend of January may mirror that of November. In the short term, we still rely on the sentiment of the US stock market. I previously mentioned that the sentiment on January 6th is quite important, and last night also met previous expectations. After all, the Americans have officially started their new year’s plans, and in a while, we will welcome the expected market trend with Trump taking office. Most altcoins still operate closely following the leading quality altcoins; if the leader doesn't move, low market cap coins won't perform significantly.
The previous AI recommendation for FET at 1.3 is fine to hold, and those who don't have it should look for a place to place orders. The same goes for WIF. Recently, the operations for BIO and FIL, if there’s another rise, will reach our target position. At that time, I will suggest taking some profits while also selecting new bottom positions! Market funds are limited; if Bitcoin rises, Ethereum cannot rise significantly. When Bitcoin surged yesterday, Ethereum's rate quickly fell back. Hence, for Ethereum to rise significantly, Bitcoin cannot increase too much. Currently, Bitcoin has risen, so we can only wait for Bitcoin to retract a bit for Ethereum and other altcoins to have room for catch-up.
Currently, FTX's compensation has started, and there are relatively many positives in the first quarter. Therefore, there is a high probability that it will support a profitable trend; however, we must also control the rhythm of market fluctuations to maximize profits!
Be sure to keep a good rhythm! Altcoins are severely drained by Bitcoin. We have experienced this kind of market numerous times, so we must get used to the fact that new trends will open after each Bitcoin drain. Bitcoin must break new highs for the market cap ceiling of altcoins to be fully unlocked.
In November, there was a wave that strongly resembled previous rounds of altcoin bull markets, as XRP surged to a market cap of around 300 billion, breaking the ceilings for all altcoins. In the coming months, we should see numerous reports of a leading altcoin breaking ceilings, possibly ETH, SOL, XRP, DOGE, BNB, etc. Then other small-cap altcoins may experience several times increase in value. The market will repeatedly go through familiar altcoin bull trends, and in the rising market, we only have one goal: to outperform the average market increase. It is essential to control positions reasonably; we are now on the eve of an altcoin bull market.
In summary, the market has been gradually recovering compared to previous trends. Although some altcoins have only rebounded slightly, this is partly due to Bitcoin’s dominance and also because some funds have been absorbed by primary market AI agents. Coupled with the continuous market washing and the lack of new narratives, we can only wait for Ethereum to rise to fully unlock the sentiment of altcoins.
Institutions and some listed companies have started to slowly come back to buy the dip. From a price perspective, the cost performance is much better than before the last adjustment. In recent days, the Crab Boss has also been showcasing quality altcoins. What we need to do now is wait for signals and suitable opportunities; the main upward wave for altcoins may be on the way. So we should maintain good positions and wait patiently.
This week, there are actually quite a few macro data points, which will affect market movements to some extent, especially the data on Thursday and Friday. Be attentive to taking profits at the right moments.
The rise in January has just begun, so hold onto your spot positions and wait for the price to rise.
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