Good evening, brothers and sisters! Recently, Ethereum's market performance has clearly outperformed Bitcoin. According to data, the capital inflow into Ethereum's spot ETF last week reached 349 million dollars, and large institutions like BlackRock and Fidelity have purchased 100,000 Ethereum, showing that market interest and confidence in Ethereum are gradually increasing. Since December, the capital inflow into Ethereum's spot ETF has reached a new high, further demonstrating institutions' sustained optimism towards Ethereum. Meanwhile, the Asian and European markets have begun to see a rebound after a week of capital outflow, especially significant increases in the U.S. market.
From the perspective of market capital inflow, the on-site capital has increased by 1.2 billion, and the current total market capitalization has reached 210.9 billion. Meanwhile, the market capitalization of USDT has slightly increased by 24 million, indicating that market liquidity is stabilizing.
The market capitalization of USDC has increased by 620 million, but the trading volume has decreased, indicating that major funds have flowed into Ethereum and related altcoins.
The advantages of Ethereum
Compared to Bitcoin, Ethereum's advantage lies in its broader decentralized application base, especially its strong performance in smart contracts and DeFi. For example, BlackRock's RWA project is promoting further development of the Ethereum ecosystem, so institutions like BlackRock may continue to recommend Ethereum spot ETFs, which will have a positive impact on market liquidity.
Additionally, the Prague upgrade scheduled for March 2024 is expected to bring more technological advancements for Ethereum. Particularly, tokens related to Ethereum, such as ETH, SUSHI, and UNI, may experience significant market attention driven by the technological upgrade.
Moreover, major institutions on Wall Street, including BlackRock, Fidelity, Grayscale, and others, are expected to submit applications for Ethereum staking ETFs in January, which will undoubtedly further boost market sentiment and capital flow.
The relationship between Ethereum's rise and the altcoin season
In the cycle of the cryptocurrency market, the rise of Ethereum is usually a signal for the beginning of the altcoin season. However, historical data shows that the start of the altcoin season often requires strong upward support from Bitcoin.
For instance, from November 2020 to May 2021, altcoins surged significantly before and after the Ethereum Berlin upgrade; from July to August 2022, due to the positive effects of the Ethereum Paris upgrade, the altcoin market rebounded.
Currently, Ethereum's performance is strong, but the real altcoin season requires a breakthrough surge in Bitcoin as a 'catalyst.'
Currently, Bitcoin's market sentiment has experienced a surge in November and a correction in December, and it is expected to further rise after the January holidays. Especially with the potential impact of Trump possibly returning to office and favorable related policies, the market is likely to welcome a new round of increases.
In recent days, the battle between bulls and bears remains undecided; everyone should pay attention to risks and operate carefully:
Currently, the market is highly volatile, with both bulls and bears still in conflict, and the outcome remains undecided. At this time, we retail investors need to pay attention to risks and operate carefully. Although the market seems calm now, there are actually undercurrents. The best strategy is to patiently wait and look for suitable spot bottoming or entry opportunities. Trend trading is currently the best choice; wait for a price breakout before considering buying. If the price does not break out, then the possibility of a decline is also greater.
Recently, there have been no significant positive or negative events, liquidity is low, and trading volume is also small. Everyone can focus on the market sentiment on January 1, especially the reaction of the U.S. market. The real return of liquidity is expected around January 6, and after the U.S. releases unemployment data on January 10, it may usher in a new trend.
Current strategies
At the peak of a bull market, the market is flooded with various positive news, and some bloggers' optimistic predictions can easily lead retail investors astray, even causing them to borrow and leverage for investment. However, when the market crashes, these investors often find themselves in an inescapable predicament. Following the bull market is a bear market lasting more than a year, and many investors, unable to bear the quiet market, frequently trade, losing all the profits made during the bull market, and even their principal.
Therefore, to make money in the cryptocurrency market in the long term, investors must possess a deep understanding of the market and self-discipline. Profits during a bull market often contain elements of luck rather than relying solely on skill. Investors must not only be wary of market risks but also be cautious of irresponsible 'mentors' who mislead them. In this unpredictable market, retail investors face many challenges. In the upcoming layout direction, I will guide everyone to aim for the lucrative opportunities in altcoins, especially those with great potential, expecting a growth space of over ten times is not a problem. If you want to make big money in the bull market, like and leave a comment, and I'll take you through the entire bull market layout!
