Google officially announced the quantum chip Willow, which solves a problem that would take a top computer 10²⁵ years to solve in just five minutes, reigniting quantum threat discussions; Microsoft shareholders voted against a Bitcoin investment proposal; Bitcoin rebounded after falling to $94,000, with the overall market following suit.
Waiting for the US CPI data, the three major US stock indices all slightly declined.
After Bitcoin and Ethereum dipped yesterday, there was a quick rebound. Bitcoin touched a low around 94,200, while Ethereum was around 3,510.
When the market is unstable, it's advisable not to touch highly volatile altcoins or leverage high multiples. If you want to participate, stick to Ethereum, SOL, and BNB. When the market starts again, we can ride the wave and try to catch the rebound in altcoins. At this stage, focus on defense, stay alive, preserve capital, as the next waves of market movements will be relevant to you!
Current market environment.
This month has both good and bad news, so friends should be cautious. Events to watch include tonight's CPI, whether MSTR will be included in QQQ, FASB effectiveness, Federal Reserve interest rate meeting, Bank of Japan interest rate meeting, and Christmas, among others.
In January 2025, Trump will take office. News broke yesterday that Trump hopes Bitcoin will reach $150,000 in the early days of his presidency. Wow, so at that time, could ETH bring altcoins along for a wave?
On the bearish side, pay attention to interest rate cuts and economic conditions, but next month's interest rate meeting is on January 29. The official inauguration is on January 20.
Macroeconomic data.
This week is crucial at the macroeconomic level, with several key inflation data releases that will impact the expectations for the next interest rate cut.
Data to be released at 9:30 on Wednesday includes: CPI.
PPI will be released at 9:30 on Thursday.
Tonight's CPI data release is undoubtedly the focus of the market, and many friends have begun to speculate on how Bitcoin will react. Personally, I remain optimistic; the logic is still the same as last Friday's non-farm payrolls, with current expectations of rising inflation. Even if the inflation data rises slightly, it won't affect the Federal Reserve's established path to lower interest rates in December.
A continuous 72-hour decline is rare in history, so the possibility of a short-term rebound remains high. Just like a bowstring being pulled tight, it must be accompanied by strong rebound power.
Regarding altcoins.
In addition to BTC and ETH, focus on quality public chains: leading DeFi projects and strong meme communities.
Choose high-quality altcoins with lower pullback amplitudes: AAVE, UNI, SUI, ADA, CRV, XRP, DOGE, LINK, ONDO.
Yesterday, Elon Musk generated and shared multiple images themed around the $Pepe meme through AI feature Grok 2 on 𝕏, continuously posting, retweeting, and replying to several related tweets, showcasing his fondness for the Pepe meme. This action sparked speculation within the community about whether Elon holds $Pepe. He first explicitly mentioned the Pepe keyword, replied to a user's Pepe meme, and retweeted a Pepe meme created by ALX. This series of interactions not only highlights the popularity of Pepe but may also imply its potential value in the market and community.
I am optimistic about the AI meme sector and recommend leading tokens like $GOAT and platform token $VIRTUAL, which correspond to narrative leadership and practical support respectively.
Additionally, the religious mascot leader $LUCE and $KOMA on the BSC chain, I believe these sectors are expected to stand out in a bull market. The overall logic is to achieve steady appreciation through BTC, while using high-risk, small-cap coins to obtain high returns, balancing trends and odds to achieve wealth growth.
Neiro, Babydoge, and Pnut are strong new listings with high odds, while DOGE is suitable for long-term holding; manage based on your own judgment.
Avoid those coins with deep discrepancies.
➜ $RAY
I mentioned this cryptocurrency yesterday; during this downturn, the decentralized exchange (DEX) Raydium on the Solana network has once again begun to stand out. It offers users a central limit order book, supports rapid trading, shares liquidity, and allows users to earn returns.
Strong competitiveness and great growth potential.
➜ $OM
OM is known for its security-first Layer 1 blockchain, designed for the tokenization of real-world assets (RWA) that meet regulatory requirements.
It is built on the Cosmos SDK, has IBC compatibility, and provides institutions and developers with a permissionless blockchain for permissioned applications. Sentiment is bullish.
➜ $XRP
The recent significant event for Ripple is the plan through the European WisdomTree Physical XRP ETP, which also links Ripple to fiat currencies and blockchain, making many institutions optimistic about its future development.
Ripple was supported by donations during Trump's election campaign, and after the election, the price rose to $2.9, reaching a three-year high. If Trump promotes XRP as a means of crypto payment, its price could rise significantly.
