In the past two days, Bitcoin's price has dropped, but most altcoins have not followed suit, and today there is a general rise.
Currently, Bitcoin is being drained by altcoins; a new round of altcoin season may be coming.
Among altcoins, the DeFi and AI sectors are performing the best, with projects like Aave, CRV, and Usual all rising over 20%.
These projects are all related to regulatory narratives in the U.S.; AAVE is related to Trump concepts, and CRV is also collaborating with BlackRock.
On-chain AI projects like Virtual, AIXBT, and Game have also rebounded, and the exchange rate of Solana to Ethereum has also begun to reverse. This indicates that some funds have flowed into the Solana ecosystem.
Binance launched a new launchpool project called Bio yesterday; it is a decentralized scientific DAO organization focusing mainly on the biomedical field.
These signs indicate that large funds have begun to take action, flowing into various sectors for speculation; a new round of altcoin season may be coming.
Someone is asking, has Bitcoin dropped to the right level?
I feel it's almost there; the downside for Bitcoin is very limited right now.
From the market perspective, Bitcoin has fallen 14% from its peak.
Currently, Bitcoin's trend shows a shaking bottoming state, so the closer it gets to $90,000, the greater the opportunity to buy at the bottom.
Recently, I observed that there are a lot of buy orders below Bitcoin; many institutions and listed companies are bottom-fishing Bitcoin.
Currently, 31% of Bitcoin's total supply is held by the government, ETFs, and MicroStrategy, an increase of 14% from last year.
Yesterday, MicroStrategy began buying heavily again, spending $561 million to purchase 5,262 Bitcoins, bringing their total holdings to 444,000.
Last week, MicroStrategy sold 1,317,800 shares, but there are still $7.08 billion worth of shares that can be issued and sold.
According to their consistent methods, this $7 billion will eventually be used to buy Bitcoin.
So Bitcoin's return to $100,000 is just a matter of time; cherish this rare opportunity to buy at the bottom.
Additionally, the listed company Matador Technologies Inc. also approved the purchase of $4.5 million worth of Bitcoin as a strategic reserve asset.
Currently, the total amount of Bitcoin spot ETFs has also exceeded 1,300,000, accounting for 6% of the total Bitcoin supply.
It can be seen that a pattern formed by the government, ETFs, listed companies, and large holders has already taken shape.
Institutional investors are usually long-term holders and do not trade frequently.
This hoarding behavior reduces the circulating supply in the market, which will support Bitcoin's long-term price.
This institutional trend indicates that Bitcoin is transitioning from a 'retail-driven asset' to a 'mainstream investment asset.'
In the future, the amount of Bitcoin flowing in the market will only decrease, and the price of Bitcoin will only rise. I believe it is only a matter of time before it reaches $1 million.
Notably, Forbes' column predicted seven major trends in the cryptocurrency industry for 2025:
1. G7 or BRICS countries may establish strategic Bitcoin reserves.
2. The market capitalization of stablecoins will double to $400 billion.
3. Bitcoin's DeFi ecosystem will achieve rapid growth through L2 networks, with the locked amount expected to exceed the current $24 billion in cross-chain wrapped Bitcoin.
4. Spot ETF products will expand to Ethereum staking and Solana and other sectors.
5. Tech giants like Apple and Microsoft may follow Tesla in increasing their Bitcoin holdings.
6. The total market capitalization of the crypto market will exceed $8 trillion.
7. The improvement of the regulatory environment in the U.S. will drive the revival of crypto entrepreneurship.
They believe that with the new SEC chairman Paul Atkins taking office, the United States will once again become the global center of cryptocurrency innovation.
The new round of explosions will be driven by institutional funds entering, DeFi innovation, and regulatory clarity.
Overall, there will be a lot of favorable policy news in 2025. If you firmly believe in a bullish trend, the closer it gets to $90,000, the greater the opportunity to buy at the bottom.
I think during Trump's four years in office, if the Bitcoin strategic reserve bill passes, Bitcoin may enter a long-term bull market.
Because there are only 21 million Bitcoins, if sovereign funds from various countries start to follow suit and buy, the supply-demand relationship will ensure that Bitcoin's price continues to rise.
So the goal of our operations is: how to earn more Bitcoin.
In terms of operational strategy, allocate 80% of positions to Bitcoin and 20% to narrative-driven leading altcoins.
But it is important to note that our purpose in buying altcoins is to exchange for more Bitcoin.
So when altcoins double, one must take out the principal and can exchange it for Bitcoin to lock in profits.