The large drop following the interest rate cut meeting in the early hours mainly stemmed from Chairman Powell's speech, which was unexpectedly hawkish. The hawkish stance directly crashed global markets, not just the crypto market; the US stock market also saw a significant pullback. The crypto market is already at a relatively high price, with strong bullish sentiment and a lot of leverage, so the drop is considered quite reasonable!
Regarding future speeches, the possibility of interest rate cuts has become an uncertain variable, and we still need to rely on economic data to decide. The market performance is a short-term negative, and such a major impact will gradually be digested over time. In the short term, as long as we hold the position at 9.8, the overall upward trend has not been broken, and it can be seen as a healthy pullback.
Now looking at Ethereum, it typically follows the downward trends but does not rise well, much like an incapable person! Ethereum's price movements have always been volatile, and this level of pullback has occurred multiple times this year. The key level for Ethereum is still around $3500. As long as it does not fall below this level, it represents a very good short-term buying opportunity!
As for the altcoins, AAN is launching new projects too quickly, and investors don't know how to choose. The moment new projects go live, they are often met with selling and profit-taking, which is quite baffling. Even when Big Brother was detained, it wasn't like this. Why is it different now that he's free? Is AAN short on funds?
Every significant pullback is an opportunity to add to your position and enter the market. If you grasp this, you will be different from most people. Opportunities are given to those who are patient; the market will always give signals before rising. The key is whether you can recognize the right time to enter. Christmas is coming soon, and once the holiday is over, the market will eventually return to the familiar state everyone knows!
Next, there is not much liquidity left for Christmas and New Year's Day. Be patient and wait for the opportunity to buy at the bottom!
As for what to buy at the bottom, look for previously strong projects that have not yet delivered on their narratives. I am optimistic about the market after Trump takes office from January to March next year. If you want to be stable, focus on ETH, BNB, and SOL. If you want to take a more aggressive approach, you can choose ACT or PNUT.
For those seeking stability, in the meme sector, you can consider DOGE, PEPE, WIF, FLOKI, etc. For public chains, choose some well-established ones with good popularity, such as APT, SOL, and SUI. In the AI sector, select FET, and WLD will suffice; however, I am more optimistic about FET, especially since it has DWF as a market maker partner, making it hard for prices to look too bad.
In the DeFi sector, the first choices to consider are still Aave and Compound. We have zero-cost positions in these. For those who want to enter again, you'll need to wait for a lower price. Additionally, MKR itself has no problems; it just got dragged down by Ethereum. If you don't have a stop-loss, you can hold it normally, just control your position and avoid using contracts.
As for position management, it still depends on your habits. Of course, Lao Yao also suggests that everyone make reasonable arrangements. If your allocation is insufficient, you might as well pick some parts from the above sectors. As long as the fundamentals and projects are still operational, time will give you answers and some wealth.
Additionally, although the decline was significant in the early hours, the performance data of the ETH ETF still gives us confidence to see the future craziness. Despite the negative news surrounding the brand, some data has flowed out, but BlackRock alone has seen an inflow of $80.7 million, single-handedly supporting the entire ETH ETF net inflow. While others are cutting losses, BlackRock is buying at the bottom.
Therefore, in the future, whether ETH breaks its historical high or surpasses $5000 or $8000, it is just a matter of time, following the same script as BTC. BlackRock's CEO is personally involved in continuously promoting it, and there must be long-term plans behind this. This is absolute strength, and we should have confidence.
Next, for ETH to rise, it still needs to break the previous trend line at 3850. Only if it can effectively hold this level with volume can we see higher Ethereum prices!
Moreover, in January, there will also be FTX compensation, with $16 billion in USDT or fiat currency compensation. Some of that will flow back into the crypto market. Coupled with the US ETF resuming operations, the future market conditions are still worth looking forward to. Now is not the time to exit.
As mentioned before, every significant drop is a good opportunity to enter. Today is also one of those moments. We are in a bull market cycle, but the characteristics of this year's market are 'fast, accurate, and ruthless.' The pump happens quickly, and the dump also occurs rapidly. Without innovation or new narratives driving it, the market is difficult to sustain. Everyone needs to adapt to this rhythm.
