After experiencing a pullback earlier this week, a large amount of leverage in the market was forcibly liquidated, and the health of the market has returned to normal. Today, Bitcoin surged again above $100,000. Earlier, BTC briefly broke last week's high of $110,800 at 6 AM before retracting. If it can successfully break through again after the volatility, it is expected to challenge the historical high of $104,000.
The cryptocurrency market has been volatile these past few days, with the market undergoing thorough cleaning. Microsoft shareholders voted down the Bitcoin investment proposal, and Google announced the quantum chip Willow, which has caused significant fluctuations in the market. Small investors are selling at losses, yet the net inflow of Bitcoin ETFs remains steady. Last night, the U.S. released the November CPI, which also met expectations, and the funding rate dropped to 0. The market lightened up, and it climbed back above $100,000 last night.
The market is generally rising, and the sentiment has shifted from skepticism to optimism. What has happened in the market?
Bitcoin and Ethereum spot ETF data are still seeing significant net inflows.
Bitcoin spot ETF data is one of the important reference indicators for observing the inflow of off-exchange funds.
Although there have been 7 instances of net outflow data, the days of net inflow far exceed those of net outflow. Additionally, since November 27, Bitcoin spot ETF data has recorded 9 consecutive days of net inflow, with funds continuously pouring in. Currently, the total net inflow of Bitcoin spot ETF has reached $34.45 billion.
Regarding the Ethereum spot ETF, it has transitioned from being initially unpopular and experiencing months of sluggishness to now seeing continuous significant net inflows.
Since November 22, the Ethereum spot ETF has achieved 12 consecutive days of net inflow, with even three single-day net inflows exceeding $300 million. So far, the total net inflow of the Ethereum spot ETF has reached $1.89 billion, with a total daily trading volume exceeding $470 million.
The continuous inflow of off-exchange funds has played a significant role in the rise of Ethereum's price.
CPI meets expectations, and the Federal Reserve will cut rates again this month.
Last night around 9 PM, the U.S. November non-seasonally adjusted CPI year-on-year further rebounded, rising for the second consecutive month to 2.7%, meeting market expectations and reaching a four-month high.
As one of the important data points for Federal Reserve decisions, despite a significant increase, it is unlikely to prevent the Fed from cutting interest rates next week.
The market has increased bets on the Federal Reserve's interest rate cut in December, with the possibility of a cut rising from 86.1% before the data release to 96.4%. If the Fed cuts rates again this month, it will undoubtedly increase market liquidity and benefit the cryptocurrency market.
Trump's cryptocurrency project WLFI increases its holdings in Ethereum and DeFi projects.
Trump's upcoming inauguration and the related cryptocurrency project WLFI are attracting significant market attention. Trump's second son has stated at the Bitcoin Middle East and North Africa Conference that he believes 'BTC will reach $1 million, it is a better investment than real estate, and those who embraced cryptocurrency early will succeed.'
Just one day later, WLFI took 'real action.' In the past 10 hours, its wallet address spent $10 million to purchase 2,631 ETH at a cost of $3,801, bought 41,335 LINK worth $1 million at an average cost of $24.2, and purchased AAVE worth $1 million at an average cost of $297.8.
Trump, with his significant influence, will draw greater attention and impact regarding WLFI's future funding dynamics.
The home page of Alipay's fund section features advertisements for cryptocurrency funds.
Today, an advertisement for cryptocurrency funds appeared on Alipay's fund homepage, sparking a significant discussion in the community. Some users received promotional advertisements for cryptocurrency funds on the homepage, stating 'Global investment, cryptocurrency skyrocketing, starting from 10 yuan, get in now.'
Upon verification, the fund is Huabao Overseas Technology, a compliant investment model for overseas assets, indirectly holding Coinbase stock and ARK Invest Bitcoin spot ETF. Currently, there is a daily purchase limit of 1,000 RMB per person.
I won't elaborate too much as it's sensitive, but it's worth noting that this is the first time cryptocurrency promotion funds have appeared on Alipay's homepage, which inevitably leads the market to think that some investment channels in the cryptocurrency market may be opened up.
The market is recovering; you can gradually buy altcoins in batches.
After the significant drop in the past two days, the market is gradually recovering. Yesterday, the cryptocurrencies that did not continue to drop quickly rebounded and performed well, especially those in popular sectors. Pay attention to the strong currencies in the first wave of upward movement and those that performed well during the second wave of pullback!
1. Achieving zero cost: The best operation in a bull market is to achieve zero cost. What is zero cost? For example, buying near COMP71, which rose to a maximum of 144, and when the price retraced to 140, you sold off all your positions, leaving only profits. Thus, even if the market adjusts, you won't be anxious and won't make wrong operations due to anxiety. Gains are profit, and losses won't hurt the principal; that's the advantage of zero cost.
Low-priced altcoins usually won't give you a second chance to re-enter unless there are significant adverse events. Unless there is major negative news, such low prices are unlikely to occur again. If you sold them last week, you really missed a good opportunity. As long as the coins you hold have potential, it is only a matter of time before they rise in a bull market. To avoid 'selling too early,' it's best to hold at zero cost, learn to sell in batches, and keep a certain position.
3. Clearing Strategy: When clearing positions, do not sell everything at once; you should first clear half and then gradually clean up the remaining positions. No one can accurately predict the market's peak, with frequent hot searches and the altcoin speculation index reaching historical highs, etc. Although you may miss the best selling point, these signals usually indicate that the market is approaching its peak, and remember that only the chips in hand count as profit.
4. Execution is crucial: In a bull market, the hardest part is not finding opportunities but sticking to the execution of your strategy. A bull market requires precise execution and a keen sense of market trends.
In the cryptocurrency market, being able to sell is key to reaping dividends. Timing the market top is crucial during a bull market; once a trend is established, no matter where you buy, it's just a matter of time before it rises. There are many signals for the top, such as frequent trending on hot searches, or the altcoin speculation index reaching the last cycle's high or historical high. If you refer to these data points to sell, you may not hit the peak, but looking back, it likely will be a short-term high.
