Since Trump's election victory, the market has continuously risen for a month, and it has been a broad-based rally. I expect that the market will enter a phase of differentiation next. Quality assets still have room to reach new highs, while some that have already risen significantly may face a phase of pullback. Additionally, quality assets that have not rebounded much can also be set up for investment!
Ethereum is definitely the most certain, as it will undergo an upgrade in March next year. Historical experience tells us that every upgrade will have a wave of speculation, and coupled with the current net inflow of ETF data, the staking function of ETFs will also be launched next year.
Currently, we are definitely not in the initial phase of the market. The first wave has entered the mid-to-late stage. Trump's official inauguration is before the 20th of next month, and there should still be a certain opportunity for a new high for Bitcoin. Additionally, opportunities for Ethereum and Ethereum-related coins are also certain. After all, I believe the real rebound for Ethereum has not yet arrived; in the early stages, Ethereum has been in a volatile upward trend. The sustained daily upward pull is the end of this bull market. Therefore, it's time to boldly position ourselves in Ethereum and its series on pullbacks!
Today's noteworthy news is that Amazon's shareholders proposed converting 5% of their assets into Bitcoin.
After Microsoft's voting preparation to include Bitcoin in reserves, a public research center submitted a proposal to Amazon suggesting the company include Bitcoin in its asset reserves.
This proposal clearly explains why shareholders of these large companies want the company to reserve Bitcoin.
The proposal points out that a company's value not only depends on its business profitability but also on its ability to protect the value of its profits, which in turn protects shareholders' interests.
Amazon currently has $88 billion in assets, including cash, securities, and bonds, but the yields on these assets are not keeping up with inflation, effectively diluting shareholder value.
Therefore, they suggest converting this portion of assets into Bitcoin, which has more potential for preservation of value or even appreciation. This proposal is expected to be reviewed and voted on at Amazon's shareholders' meeting in 2025.
Regarding this proposal, Binance founder CZ stated that it's a simple question: just accept Bitcoin payments.
It can be seen that regardless of whether big companies like Microsoft and Amazon ultimately pass this proposal, this trend has already formed. Currently, Amazon's market capitalization is $2.38 trillion, and even if they only buy 5% of Bitcoin, that amounts to $165 billion. If this proposal is passed and implemented, it may push Bitcoin to challenge the high points of $130,000 to $150,000.
The market in the adjustment phase is a time for reflection and consolidation to gain experience!
Currently, everyone has noticed that the market is in an adjustment and pullback rhythm. The reason for this pullback is also very simple: institutions do not operate on Saturdays and Sundays, so there will be no inflow or outflow. Therefore, Monday's data will only appear in the evening, so right now it is entirely a game of retail investors. Some institutional players, including whales, will also change hands and reduce positions, which is very normal.
Therefore, for retail investors to have a share in this bull market, they must adhere to their own trading mindset. For instance, as I mentioned earlier, if everyone should reduce their positions during a wave, they should do so. If your altcoins have increased by 30%-50%, you should take 30% off. If you strictly execute this mindset and rhythm, today's adjustment in the market will not harm you at all.
Currently, the players who are stuck in the market are those who chased high altcoins earlier, so if you are stuck, you should reflect on your trading mindset and rhythm. Although today there is a market adjustment, our overall profits, including costs, have not been hurt, and many altcoins we held earlier have not even reached our cost price yet.
Timely adjustment of one's trading rhythm, including good investment strategies, is essential; otherwise, we will miss out on the entire bull market. After all, the current market has been called the craziest bull market in the cryptocurrency sphere! We have waited for 3 years just for the arrival of this profitable market.
Currently, the market has not continued last week's upward trend and is in a consolidation phase. This stage is the most challenging and tests the patience of spot traders; don’t get shaken out.
Let's look at the highlights of the future market:
The closest event to us is the Microsoft investment in Bitcoin proposal result on the 10th and 11th. If approved, I believe this funding will help Bitcoin stabilize at $100,000, making it a key moment.
If the proposal does not pass, it will just be a small negative sentiment and will not have a major impact.
However, the market currently has lessons from prior experiences; MicroStrategy's investment success makes it highly likely that Microsoft will pass as well.
Additionally, Powell will also speak this week. Previously, Powell's speeches have been a dimensional blow to the crypto sphere, but in his last speech, he publicly stated that Bitcoin's competitor is not the dollar, but gold.
Comparing BTC to BTC, this is also the first time Powell has publicly talked about the positive side of Bitcoin. The day after his last speech, BTC broke through $100,000, so this week it is very likely that Powell will not suppress the market, especially since Trump is about to take office; those who understand know!
The subsequent news will be focused on the latter half of the month.
On the 18th and 19th, the Federal Reserve may lower interest rates on the 18th, and the Bank of Japan may raise interest rates on the 19th. These two actions are completely contradictory, and I estimate the market will experience a spike in volatility. However, overall, I personally think it still pertains to BTC. If Ethereum's ETF funds flow in normally and there is a large amount of capital in the second half of the month, I believe altcoins will not necessarily decline. We'll take it step by step. This is what I mentioned earlier: the first half of the month is full of opportunities, while the risks in the second half of the month are here. I hope everyone can understand the meaning of this statement.
Following this is Christmas on the 25th. I won’t say much more; Christmas is just a small risk of fund outflows.
Looking ahead to January when Trump takes office, after taking office, Trump has the power to loosen policies and make cryptocurrency great again! After all, the funds from Trump’s family dog project have mostly been transferred to BTC and ETH, and I believe Trump will not let the coin price look too bad!
Finally, I hope everyone currently views the market from a different perspective and does not just look at the charts. Future market analysis may not be the same as before; it will also require consideration of Trump's policy adjustments after taking office, as well as the movements from BlackRock, MicroStrategy, Grayscale, etc. Pay close attention to the types of tokens held by these institutions and the inflow and outflow of funds. Avoid chasing highs to navigate the entire bull market!
