Some positive news for certain markets in the future:
The first is that a large amount of capital may enter the market in January. FTX compensations have paid 98% of retail investors in December, defined as those below $50,000, totaling $1.1 billion. It is expected that in the first quarter, large compensations will amount to a total of $13.4 billion to $15.2 billion, with a high likelihood of compensation in USDC, which is equivalent to the backing of over 100,000 bitcoins. Even if only a small portion of this capital flows into the market, it will still represent a massive buying power.
Initially, many believed that after compensation, this capital would exit the market. If you are a compensated party and see the market surge to $100,000, with most altcoins and Ethereum not following suit, would you choose to leave the market? Or continue to fight?
The second point is that in January next year, Trump will be in office, and there will be a change in the SEC chair. Even if things are bad, the coin prices won’t drop significantly. Of course, we shouldn’t have overly high expectations. Yesterday, the market already reduced the position in Bitcoin by 20% at $100,000, and we are considering a reduction plan above $150,000. We are preparing to trade altcoins either for short-term movements or long-term holdings, just to accumulate more altcoins that can outperform the overall market growth.
