Recently, Bitcoin broke its historic price, surpassing the $100,000 mark for the first time and briefly reaching $104,000, followed by a rapid retreat to as low as $90,000. This pullback led to a large number of forced liquidations, with the liquidation amount hitting a new high since the FTX incident. The crypto market has not experienced such large-scale liquidations in a long time, highlighting the volatility and risk in the market.
Currently, the price of Bitcoin is in a consolidation range, and market sentiment is relatively cautious. Technically, if it cannot maintain above $98,000 on the daily chart, the price may further pull back. At this time, investors may consider a fluctuation trading strategy, buying low and selling high, with a focus on weaker coins.
Macroeconomic Market Dynamics
ETF Inflow
Yesterday, ETFs continued to flow into Bitcoin, with a single-day increase of over 7,000 BTC. The inflow of ETF funds remains stable, indicating that the long-term investment demand for Bitcoin has not been significantly affected. Currently, ETFs are not the main factor behind the price decline.
Approval Status of Cryptocurrency ETFs
According to insiders, the SEC has rejected applications for two Solana spot ETFs and may suspend the approval of other cryptocurrency ETFs. This news has led to lowered expectations for cryptocurrency ETFs in the market, which may exert some pressure on coins like XRP and SOL.
Grayscale Fund Outflow
Grayscale Fund withdrew 1,500 bitcoins yesterday. Despite a significant supply in the market, the continued outflow from Grayscale may exert downward pressure on prices in the short term. Therefore, investors should be cautious when chasing after prices at high levels.
Non-Farm Data and Market Volatility
Tonight, the U.S. will announce the unemployment rate and non-farm employment data for November. Given the market has experienced significant volatility, it is expected that the non-farm data will not trigger a new significant crash but may bring some rebounds. However, if the data is unfavorable, it could mean that the Federal Reserve will not cut interest rates in December, increasing market risk sentiment and further intensifying bearish sentiment.
Market Trends and Sector Hotspots
Rise of the AI Sector
Currently, AI-related projects and AI + Meme concept coins are favored by market funds. In the past 24 hours, projects in the AI field have generally performed well. With the frequent live events from OpenAI, the hype in the AI sector remains strong. Investors can pay attention to the sustained upward momentum in this sector.
Potential of the RWA Sector
Asset Tokenization (RWA) is becoming a market focus, especially in the context of the accelerating digitalization of the global economy, the demand for real asset tokenization will continue to grow. Such projects have long-term growth potential, and investors may consider timely investments.
Opportunities in Meme Coins
Meme coins remain one of the most attractive tracks in the altcoin market. As the bloodsucking effect of Bitcoin gradually fades, market attention is expected to shift to Meme coins, especially during bullish market sentiment when these coins often become catalysts for upward movement. Investors should focus on projects with strong community support and sustained narrative capabilities.
Analysis of Popular Projects
PNut
The PNut coin is not yet listed on Coinbase, but it has a high level of consensus in the U.S. market, especially in the context of Trump's electoral victory. This coin is expected to see a surge in the future. Considering its substantial pullback, if the price dips further, it may present a suitable opportunity for low-position investment.
AVAX
AVAX has an important upgrade event, with the AVAX 9000 mainnet upgrade scheduled for December 16. This will be the largest technological innovation in AVAX's history. The upgrade will support developers in building expansion chains based on the mainnet, expanding the AVAX ecosystem. With technological advancements, AVAX's potential is worth paying attention to, especially as it may hold a place in the next bull market.
SUI
The SUI blockchain is known for its high performance and low latency, making it particularly suitable for micro-payments and micro-transactions. As the SUI ecosystem gradually develops, it has enormous growth potential in the DeFi and decentralized exchange (DEX) sectors. However, due to its large-scale supply possibly exerting downward pressure on prices, it is suitable for flexible operations in the short term, avoiding long-term holdings.
HBAR
The pullback of HBAR is substantial, currently positioned at a low point. Despite its large market capitalization, it is still underestimated by the market, even though it collaborates with projects like $ADA and $XRP and provides solutions for multiple industries using hashgraph technology. If market sentiment improves, its potential should not be overlooked.
