Yesterday's crypto market felt like a small roller coaster ride; BTC caused a slight tremor in the market, and market makers tried hard to pull the prices back but failed.
Currently, Bitcoin is still in a relatively tangled state. Overall, the trend remains weak, with signs of a top formation. From a daily perspective, the 90k level can serve as a dividing line for the strength of the Q1 market.
It is well known that the main driving force of this bull market is U.S. capital.
Currently, the situation in the U.S. is still in a holiday state (from Christmas to New Year), which indicates that liquidity is very tight, especially on weekends.
Whether looking at the U.S. stock market or the crypto market, we can see that trading volume and volatility are relatively low. This type of market is common at the end of the year, as there are a lot of settlements, whether for holiday cashing out or for companies to balance their accounts. Therefore, this drop can be considered reasonable and does not significantly affect the trend.
If you're interested, you can review past year-end market trends, which are generally quite tangled. Except for the monotonous upward trend in 2020, other years have been characterized by oscillating markets, with real breakthroughs appearing only in January of the following year. So there's no need to overly focus on the market in these days; just stay calm.
By December 27, 2024, ETH will still be stuck at the awkward 3300 points. While BTC reaches new highs, ETH has yet to touch the historical high of 4800 set in early November 2021. In the past year, it has repeatedly attempted to breach 4000 but has failed each time.
What I want to say is that ETH, as the king of altcoins and the king of public chains, has a deep-rooted ecosystem that has long been embedded in every corner of the crypto world.
Various whales and even Wall Street forces have deep involvement in ETH, and many calculations were already predetermined in the previous round. At that time, other public chains didn't even have the qualifications to provide assistance.
In other words, a large amount of capital and plans have already been pre-positioned; the script for the rise has long been designed, just waiting for specific conditions to trigger it.
Currently, the ETH spot ETF policy does not allow for staking, meaning users cannot earn staking yields and also have to pay management fees, which hinders a significant inflow of funds, making the ETF less attractive.
With Trump's rise to power, it is highly likely that subsequent policies will allow ETFs to enable clients to earn staking yields. Currently, the annualized staking yield is around 4%. By then, as interest rate cuts progress, the attractiveness of ETH spot ETFs may even surpass BTC, allowing one to enjoy the benefits of the Ethereum ecosystem's growth while also earning interest passively.
Additionally, I have compiled a set of data: Ethereum rises, everything thrives!
From October 2023 to March 2024, there was a major altcoin market, during which the Ethereum Cancun upgrade occurred in March 2024.
From January 2023 to April 2023, there was a major altcoin market, during which the Ethereum Shanghai upgrade occurred in April 2023.
From July 2022 to August 2022, there was a major altcoin market, during which the Ethereum Paris upgrade occurred in September 2022.
From July 2021 to November 2021, there was a major altcoin market, during which the Ethereum Glacier upgrade occurred in December 2021.
From November 2020 to May 2021, there was a major altcoin market, during which the Ethereum Berlin upgrade occurred in April 2021.
Every time before an Ethereum upgrade, there is always hype! Every time positive news materializes, the market ends.
When is the next Ethereum upgrade? The Prague upgrade in March 2025!
In the past, positive speculation around Ethereum would typically happen 2 to 3 months in advance, so I don't need to say much more.
This year's market is challenging to operate in and has a fast pace. We will discuss the fast pace characteristic later. Currently, the dominance of altcoins is quite high, and aside from waiting, there are no better options in the spot market.
