Today the market continues to start sideways fluctuations.
Bitcoin fluctuates around $100,000, while Ethereum fluctuates around $3,930.
Among altcoins, the strongest performers are projects in the AI meme and DeFi sectors, with LINK, AAVE, and Virtual showing counter-trend increases.
Someone asked if Bitcoin would experience a significant drop during the Christmas period.
I think the possibility of a significant drop is very low now.
The recent several declines are all pin-insertion liquidation market conditions.
From the contract map, it can be seen that where there are many pillars, the main force will burst them, which is very accurate.
It can be seen that the main force is washing away some leveraged and uncertain chips to prepare for the next wave of increases.
From a macro trend perspective, we are currently in the later stages of a bull market. Before Trump takes office on January 20, the market is still expecting him to fulfill his election promises.
As long as this consensus is not broken and there are no major negative news, Bitcoin will still maintain an upward trend.
From the ETF data: yesterday, Bitcoin spot ETF had a net inflow of $604 million, while Ethereum's spot ETF had a net inflow of $276 million.
This week, the inflow of Ethereum's spot ETF also reached a new high.
This indicates that US institutions are increasing their buying power for Ethereum, with new funds flowing into the Ethereum ecosystem.
Yesterday, Ethereum also experienced a wave of supplementary gains, and from the market, it is about to break through the resistance level soon. Once it breaks through, it may challenge the previous high of $4,800.
The Trump family funds bought ETH, LINK, and AAVE through the cow agreement, which also drove the supplementary gains of these projects.
This may be because they need to use projects in the Ethereum ecosystem to build infrastructure.
From this round of increases, it can be seen that the better-performing DeFi projects are mainly related to US politics and compliance narratives.
I feel that Ethereum might rise significantly because almost all DeFi projects are basically on the Ethereum ecosystem.
Currently, many large institutions still prefer Ethereum, such as Coinbase's Base chain.
Because Ethereum has comprehensive security advantages for DeFi, not only in terms of the decentralization of the network but also in terms of numerous security cases, audits, and white hat resources, which are all very important for DeFi and large institutions.
Yesterday, Trump also stated in an interview that he would do great things in the cryptocurrency field.
He is also very concerned about the price of Bitcoin and hopes it can reach $150,000 in the early days of his term.
Market expectations are high; we can see if Bitcoin can break $200,000 after Trump takes office next year.
Overall, I think the possibility of a significant drop in Bitcoin is low.
I can't find any reason to sell Bitcoin; at least I can hold it until after President Trump's term begins to see.
From the current trend, during Trump's four years in office, Bitcoin may enter a prolonged bull market, and I see it reaching $1 million.
Bitcoin is the only project suitable for large positions; the potential for the future is enormous.
In terms of operating strategy, a barbell strategy can be used. Large position (80%) allocation: BTC, ETH, SOL; small position (20%) allocation for leading and MEME coins.
If your capital is not large, it is recommended to focus, catch the big ones and let go of the small ones, and not to be too dispersed. You can concentrate your funds on BTC and MEME coins.
If you have a large amount of capital, you can diversify your allocation among projects in sectors like AI meme coins, DeFi, RWA, and DePin.
