In the new week, BTC broke its historical high early in the morning. Every time BTC hits a new high, some people worry about an immediate pullback. This concern is mostly psychological, especially when FOMO sentiment is still strong in the Asian market. What really needs attention is the market's performance after the US stock market opens in the evening. If BTC is not dumped after the US stock market opens, the sentiment will continue to improve.
Positive news drives BTC up.
There has been a lot of positive news recently: for example, MSTR has been included in the NASDAQ 100 index, and institutional funds are continuously increasing their positions, which has injected confidence into the market. If the ETF performs well tonight, BTC is likely to continue rising.
This week's focus is on the Federal Reserve's interest rate meeting.
The most important event this week is the Federal Reserve's interest rate meeting on December 19. The market predicts a 95% probability of a 25 basis point rate cut, which would be positive news for the market. If the Federal Reserve really cuts rates, the market may take this opportunity to surge, especially the previously strong altcoins (such as PEPE, SOL, PUNT, DOGE, etc.).
Powell's speech at the meeting is also worth noting, as it may trigger new market sentiment. Additionally, Japan is not expected to raise interest rates this month, which is also beneficial for the market.
With Christmas approaching, pay attention to risk control.
With Christmas approaching, the US stock market is closed, and market makers will also rest; BTC may be quite volatile during this period. If BTC falls, altcoins may also drop. Therefore, to be cautious, it is recommended to appropriately reduce positions around December 20, control your position size, and be flexible with short-term operations.
However, the fluctuations during Christmas will not affect the long-term trend. After New Year's Day, with Trump's inauguration and the new SEC chairman taking office, the market is expected to continue to rise.
Which altcoins are worth holding long-term?
DOGE
After Musk takes office in January next year, he is likely to mention DOGE again, so its breaking of new highs is just a matter of time. If you feel that DOGE is not cost-effective, you might consider PEPE and FLOKI.
PEPE: Strong community consensus and meme culture support, expecting a 5x increase.
FLOKI: The project team is willing to spend money on promotion, such as advertisements and appearances on CCTV news, and often issues airdrops, such as the recent MONKY airdrop.
RWA and DeFi tracks.
ONDO and AAVE: Recognized by the market, both have seen good recent performance. As market sentiment improves, these two sectors are expected to continue rising.
AI track.
FET: The previously recommended FET price was around 1.3, and I still expect it to double.
ACT: Combining AI and meme concepts is a new investment direction.
Market performance of Ethereum and SOL.
ETH: Although the ETH/BTC exchange rate is declining, last week Ethereum ETF's fund inflow reached $850 million, a historic high. Institutions generally predict that ETH is likely to reach a new high by the end of the year.
SOL: Various innovations on the SOL chain, such as meme coins, AI, and DePin projects have performed well this year, but the SOL/BTC exchange rate is still falling. Nevertheless, SOL may launch an ETF next year, and market sentiment is already high. The $200-205 range is a good entry point.
Summary: The altcoin bull market has just begun.
Taking BTC's new high as a reference, most altcoins have not yet started to surge. A few coins like XRP, ADA, TRX, XLM, LINK have already started to gain momentum, but many second-tier altcoins are still hovering at bear market levels, which is exactly the opportunity! Once the timing is right, altcoins could skyrocket three to five times, or even over ten times, in just seven days.
Investment advice:
Long-term investors can ignore the short-term fluctuations during Christmas.
Hold quality altcoins and maintain an appropriate amount of idle positions, preparing to find opportunities around Christmas.
In short, market sentiment remains optimistic; seize the opportunity, control risks, and the explosion of altcoins may be just around the corner!
