In the past few days, Bitcoin's price has fallen, but most altcoins have not followed the decline, and today there has been a general rise.
Currently, Bitcoin is being drained by altcoins, and a new round of altcoin season may be coming.
Among altcoins, the DeFi and AI sectors are performing the most prominently, with projects like aave, crv, and usual rising over 20%.
These projects are all related to compliance narratives in the U.S.; AAVE is related to Trump concepts, and CRV is also collaborating with BlackRock.
On-chain AI projects, such as virtual, aixbt, and game, have also rebounded, and the exchange rate of Solana against Ethereum has started to reverse. This indicates that some funds have flowed into the Solana ecosystem.
Binance launched a new launchpool project Bio yesterday, which is a decentralized science DAO organization primarily focused on the biomedical field.
All these signs indicate that large funds are starting to take action; they are flowing into various sectors for speculation, and a new round of altcoin season may be coming.
Some are asking, has Bitcoin dropped to the right level?
I think it's about time; Bitcoin has limited room for further decline now.
From the market perspective, Bitcoin has already pulled back 14% from its peak.
Currently, Bitcoin's trend shows a state of fluctuating bottoming, so the closer it gets to $90,000, the greater the opportunity to bottom out.
Recently, I have observed that there are many buy orders below Bitcoin, as many institutions and listed companies are bottom-fishing.
Currently, 31% of Bitcoin's total supply is held by the government, ETFs, and MicroStrategy, an increase of 14% from last year.
Yesterday, MicroStrategy began buying in large quantities again, spending $561 million to purchase 5,262 Bitcoins, bringing their total holdings to 444,000.
Last week, MicroStrategy sold 1.3178 million shares, but there are still $7.08 billion worth of shares that can be issued and sold.
According to their usual methods, this $7 billion will eventually be used to buy Bitcoin.
So, it is only a matter of time before Bitcoin returns to $100,000; cherish this rare opportunity to bottom fish.
Additionally, the listed company Matador Technologies Inc. has also approved the purchase of $4.5 million worth of Bitcoin as a strategic reserve asset.
Currently, the total amount of Bitcoin spot ETFs also exceeds 1,300,000 Bitcoins, accounting for 6% of Bitcoin's total supply.
It can be seen that a pattern formed by the government, ETFs, listed companies, and large holders has emerged.
Institutional investors are usually long-term holders and do not trade frequently.
This hoarding behavior reduces the circulating supply in the market, which will support Bitcoin's long-term price.
This institutionalization trend indicates that Bitcoin is transitioning from an 'retail-driven asset' to a 'mainstream investment asset.'
In the future, the number of Bitcoins circulating in the market will only decrease, and Bitcoin's price will rise; I believe it is only a matter of time before it reaches $1 million.
It is worth noting that a Forbes column predicted seven major trends in the crypto industry for 2025:
1. The G7 or BRICS countries may establish strategic Bitcoin reserves.
2. The market capitalization of stablecoins will double, reaching $400 billion.
3. The DeFi ecosystem of Bitcoin will achieve rapid growth through layer 2 networks, with locked value expected to exceed the current $24 billion of cross-chain wrapped Bitcoin.
4. Spot ETF products will expand to Ethereum staking and Solana and other sectors.
5. Tech giants like Apple and Microsoft may follow Tesla's lead and increase their Bitcoin holdings.
6. The total market value of the crypto market will exceed $8 trillion.
7. The improvement of the regulatory environment in the U.S. will drive the revival of crypto entrepreneurship.
They believe that with the new SEC Chairman Paul Atkins taking office, the United States will once again become a global center for crypto innovation.
The new round of explosion will be driven by institutional funds entering the market, DeFi innovation, and regulatory clarity.
Overall, there will be a lot of favorable policy news in 2025. If you are firmly convinced about the bullish trend, the closer it gets to $90,000, the greater the opportunity to bottom out.
I think that during Trump's four years in office, if the Bitcoin strategic reserve bill passes, Bitcoin could enter a long-term bull market.
Because there are only 21 million Bitcoins, if sovereign funds from various countries follow suit and start buying, the supply-demand relationship will dictate that Bitcoin's price will continue to rise.
Therefore, our operational goal is: how to earn more Bitcoins.
In terms of operational strategy, allocate 80% of the position to Bitcoin and 20% to narrative-driven leading altcoins.
However, it is important to note that our purpose in buying altcoins is to acquire more Bitcoin.
Therefore, when altcoins double, it is essential to take out the principal and convert it into Bitcoin to lock in profits.
