Good afternoon, brothers and sisters, Bitcoin's performance is very good today! This morning, Bitcoin broke through the historical high point of December 5, successfully surpassing the target range of $1,045,000, reaching a high of $106,648.
Short-term upward momentum may slow down: Although a new high has been breached, Bitcoin's gains may be somewhat limited, and a pullback might occur in the short term to solidify the base. It is expected that Bitcoin will consolidate around $105,000 for a while. The overall daily trend is upward, but the room for breaking the previous high may not be very large. A significant pullback may occur before December 27.
Investment strategy: Currently, as long as Bitcoin continues to attract capital inflow, the market can be considered healthy. The focus can shift to the rebound of ETH, which is expected to drive the rise of other altcoins. If you were previously in cash, you can choose an appropriate time to enter and make a short-term swing trade, but be aware that this type of swing trading carries high risks and may easily lead to losses by 'buying high'.
Don't FOMO, a common mindset issue in a bull market:
Sold — chased the price — bought at the peak — got stuck during the pullback.
Avoid this mentality of 'selling high and chasing after price increases', especially during times of high market volatility.
Trump family increases investment in DeFi! Buying ONDO, AAVE, ENA tokens
The Trump family's crypto investments have taken new actions! They recently continued to increase their positions in several leading DeFi applications and RWA (real-world assets) projects. According to on-chain data, World Liberty Financial, owned by the Trump family, has recently purchased multiple tokens, including ONDO, AAVE, ENA, with a total holding value exceeding $84.8 million.
These projects represent a trend: in the early stages of a bull market, institutional funds often use borrowing leverage to increase market liquidity and TVL. As the capital scale expands, sector rotation will naturally unfold.
Currently, large institutions like BlackRock and Grayscale are also paying great attention to these RWA assets, and many institutions are optimistic about the long-term prospects of these projects.
Market risks around Christmas
Regarding market risks during Christmas, everyone should be aware that Christmas is an important holiday in the West, and market liquidity may be affected. Because the U.S. stock market is closed, BTC may lack market maker support, and if Bitcoin's price falls, the performance of altcoins may be poor.
Of course, Christmas does not necessarily mean a downturn, but based on past experience, the market often experiences some volatility around Christmas, so everyone needs to operate cautiously and control their positions reasonably.
Which quality altcoins to buy before the end of the year?
In the long term, with the new policies introduced after Trump takes office and the new SEC chair taking office, the upward trend of the market remains promising. Especially from January to February 2025, this period may usher in a new round of increases. If Bitcoin continues to attract capital inflow and mainstream coins like Ethereum gain momentum, altcoins may also experience explosive growth similar to early this year.
Institutional investment strategy
Currently, institutional investors dominate the market trends, particularly the Trump family and large institutions like BlackRock, who are very interested in DeFi and RWA projects. To follow these big institutions, you can choose some coins they are investing in, such as AAVE, ONDO, ETH, BTC, which are currently performing well. If you see no significant increase in the prices of these coins, you can also pay attention to coins like UMA and SNX, which also have great potential.
Meme coins and AI-related coins
Of course, besides mainstream coins, meme coins are also a hot topic in the market. Musk's DOGE and FLOKI are worth paying attention to, especially since DOGE still has potential. If you think the potential for DOGE is limited, consider diversifying your investment into some smaller positions in meme coins like PNUT and NEIRO.
Additionally, AI-related meme coins may become the fastest-growing segment in the next wave, which deserves close attention.