This morning, I opened the market and saw that ETH successfully broke above 4,000 USD.
If we talk about the most disappointing cryptocurrencies this year, I believe Ethereum will definitely be on the list.
The market's judgment standard is very simple: just look at how much it has increased, and the entire Ethereum ecosystem hasn't exploded.
Ethereum, the leader of altcoins, has finally shown some strength, reaching the 4,000 USD level.
I wonder how those who criticized Ethereum before are doing; have they really given up on Ethereum? Or did they miss the boat? I believe everyone should have a deep understanding of the quality sector rotations in this bull market up to now!
Do you remember I kept saying to buy the dip at 3050 for Ethereum?
Let's look at some certain positive events for the crypto world in the future:
The first is that a large amount of capital may enter the market in January. FTX payouts have compensated 98% of retail investors in December, defined as those below 50,000 USD, totaling 1.1 billion USD. It is expected that in the following quarter, large payouts will total between 13.4-15.2 billion USD, with high probabilities of payouts in USDC, equivalent to more than 100,000 Bitcoins' support. Even if only a small portion of capital flows into the market, it is still a massive buying force.
Many people initially thought that after the payouts, this capital would flow out of the market. If you are a payer, after seeing the market hit 100,000, and most altcoins and Ethereum haven't followed much, would you choose to leave the market? Or continue to fight?
The second is that in January next year, with Trump back in power and the SEC chair changing, even if things are bad, the price of coins won't drop too much. Of course, we shouldn't have too high expectations. Yesterday, I already reduced 20% of my Bitcoin position at 100,000. I'm considering reducing my position further at above 150,000, aiming to make some short-term trades or long-term holds, just to accumulate more altcoins that can outperform the market.
The third is that the Bitcoin investment plan from Microsoft, which we have discussed many times, is about to be announced around the 10th. Once a company like Microsoft joins an investment plan for Bitcoin, the funds will not be less than 1 billion USD, and that's an understatement.
So the future risks and opportunities are already very clear; the upcoming time is about considering how to navigate and seize this bull market!
Regarding altcoins
You should know that there are always early movers and late movers; sectors rotate. If your altcoins aren't rising much, don't rush. As long as they are quality altcoins, they will have their moment, and you just need to wait patiently and hold. The market makers will definitely make a move!
The best time window for trading altcoins is now; the period where it is easiest to make money is only a few months. Do not keep switching back and forth casually; otherwise, you might miss the entire bull market.
Even if an altcoin is rising crazily, if you are not familiar with it, don’t touch it.
The bull market will favor the familiar altcoins; losing money on unfamiliar altcoins is the most frustrating.
In a real bull market, the rates will remain high for a long time.
And now, the funding rates are still low, what does that indicate? It indicates that the leverage in the market hasn't reached its peak.
Whether it's the continuous high funding rates or the increase in mining rates, these are signs of a crazy bull market, and right now, the big bull has just begun!
Especially Ethereum, the Ethereum ETF has been continuously flowing in during this period, and the volume is not small, indicating that institutions believe this position is still very profitable. This bull market is known to be led by institutions, and every move by institutions will trigger the nerves of all small investors. Of course, it also serves as an important basis for escaping the peak. Ethereum will definitely break new highs, and only when Ethereum breaks new highs can the FOMO and enthusiasm for altcoins further escalate!
