Yesterday's CPI data met market expectations, which also means no surprises for U.S. rate cuts in December, creating momentum that pushed BTC back to 100,000, consistent with last week's non-farm payroll data. As mentioned yesterday, under most circumstances, except for black swan events, declines will not last more than 72 hours, which reflects the market's rhythm.
After the rapid rebound following the large liquidations a couple of days ago, everyone should remember to reduce their positions if they haven't done so or chased the highs previously. Take some profits to avoid extreme market conditions recurring. Don't panic excessively when the market is falling, thinking about cutting losses; most of the time, it's because of being over-leveraged chasing highs. If your position isn't large, then a fall can actually be a good opportunity to add positions. At the same time, don't forget the hard days when prices were low, and control your greed so that you can have chips to buy the dips when others are panicking.
Ethereum has performed quite well recently, with the ETH/BTC exchange rate returning above 0.039. Ethereum ETF funds have seen a net inflow for 12 consecutive days, with another $100 million flowing in last night. Currently, Ethereum's appeal to external funds is not much different from that of Bitcoin, and last night, Trump's new project started buying ETH, with $10 million purchased on the first day and $1 million in AAVE and LINK today. This indicates that ETH's support for the market is just a matter of time.
From a macro perspective, the Bank of Japan's interest rate hike this month may push back to January 2025, which is favorable for the U.S. rate cuts and market cap in the coming week. It now looks like the coin market is transitioning from the first phase of widespread increases to the second phase where the strong get stronger.
Choose strong coins: either those that have fallen less or those that have fallen sharply but quickly recovered. Focus on strong narrative sectors.
For example, the AI sector, MEME sector, SOL series, and the recent DEFI sector.
If the first phase of the market rally is characterized by sector rotation upwards, the second phase should be marked by a race to the top:
After the first phase of widespread increases, the market has gained awareness of the main narratives or strong assets. Once it's confirmed that they can rise again, funds will flow into these assets, and the main players will actively engage (as everyone knows, it's a bull market right now, and pushing prices up will attract a lot of capital).
In the current market, we cannot expect both the stability of mainstream coins and the high returns of altcoins. There are trade-offs; altcoins can rise quickly but may also drop dramatically in just a day, erasing gains made over several days, weeks, or even months. Don't overestimate your control over human nature, thinking that you can heavily invest in altcoins and know when to exit; mistakes happen. Always remember: living longer is more important than short-term gains!
The market is starting to soar, and the corrections of the four major mainstream coins with 20-50 times returns present a buying opportunity!
SHIB
SHIB's burn rate has surged by 868%. Can it leverage this to return above $0.00004? The burn rate of Shiba Inu has shown a significant reversal. Despite a recent decline in the price of this meme coin, its burn rate has skyrocketed by 868%. This unexpected rebound coincides with an overall bearish trend in the market. Relevant data suggests that SHIB's price may continue to correct. However, such a substantial increase in the burn rate might indicate a revival of investor interest, potentially creating favorable conditions and laying the groundwork for Shiba Inu's price to return above $0.00004.
Currently, SHIB's market cap is nearly $20 billion. If you think the price is high, you might consider puppies, Musk's new favorite. Community members have reported that the price is at the bottom and suitable for ambush.
LINK
When Bitcoin rebounds, some coins rebound even more aggressively than BTC, recovering their losses and even achieving new highs. These coins should be closely monitored during subsequent corrections. Notable rebounds include LINK, AAVE, and SUI; news of the Trump family purchasing AAVE and LINK contributed to further market rallies.
Everyone should be familiar with LINK. It was a hundred-fold coin that Xiaohui laid out during the last bull market, and this rebound is quite strong. The market makers seem to be gearing up. If there's a chance to pull back to 23-26, consider buying in batches.
AAVE
Aave (AAVE), as one of the leaders in the DeFi space, has shown a noticeable upward trend. Aave is known for its innovation and cutting-edge technology in decentralized finance, and the upgrade to Aave V3 has further increased market exchanges. The upgrades in Aave V3 include enhanced interoperability between different chains and reduced gas fees, improving system security. These enhancements not only boost investor confidence but also make Aave an irreplaceable asset in the DeFi sector.
The initial stablecoin GHO launched by Aave is gradually becoming a centralized and stable trading idea within the ecosystem.
PEPE
PEPE will drive the whole sector to continue rising. In the past few days, Musk has been promoting PEPE, and the market is in a power accumulation phase. Friends holding MEME should hold onto their assets! PEPE is a relatively strong coin, and on December 9, PEPE set a historical high of $0.00002825. The current price is 16% lower than that peak.
However, looking back at the past month, PEPE has still performed impressively, with an increase of nearly 100%. The whale with a 100% winning rate has once again increased their position in PEPE by $3.68 million! Currently, their PEPE holdings have reached 11.29 trillion tokens, with a total value of $26.63 million, making PEPE the top asset held by this address.
