Regarding the small drop in $BTC these past two days, the sharp decline in altcoins, and the significant drop on-chain, I want to say a few words:
1. The decline of Bitcoin is quite obvious, mainly due to the slowdown in interest rate expectations. I don't think this is a big issue. Trump will take office on the 20th, and the next term is bound to see a lot of liquidity, so at this time, Bitcoin's drop isn't significant enough to cause panic.
2. The sharp decline of altcoins is unnecessary to mention. Basically, since May last year, altcoins have been in a weak state. Even the brief surge in the past two months quickly fell back. On one hand, since last year, the anti-VC wave has led to continuous on-chain bloodsucking, weakening the wealth effect. On the other hand, due to regulatory factors, main funds cannot manipulate the market in the secondary market. When the waters are too clear, there are no fish, and it has gradually become more like A-shares. Whether it can rebound depends on Trump's regulatory policies after taking office, as well as whether liquidity will further flow to the on-chain.
3. The significant drop on-chain is mainly because the previous AI projects rose too much. With this drop in Bitcoin, the correction is actually beneficial for market health. The AI Meme narrative is clearly just a beginning, and the subsequent capital and user trading habits will continue to move on-chain. Currently, the liquidity of Meme has surpassed that of many second-tier exchanges. Therefore, for leading projects and those with good fundamentals, it's time to jump in during this correction. I believe the recent correction is an opportunity rather than an end.
Currently, the bull market has not ended!
Firstly, whether Trump will call for action on crypto when he takes office. If he says something like, 'Let crypto become great in America,' that would stimulate positive sentiment. If he doesn't call for it, there's no need to panic. The government officials appointed by Trump, from the SEC chairman to the treasury secretary to crypto advisors, are all friendly to crypto. More importantly, Trump's policies after taking office, if they can ease and lead to a lower USD index, would trigger FOMO sentiment, especially if some positive sentiments are released regarding crypto, such as applying for ETH spot ETF staking, etc. Additionally, after January 20, financial reports will start to be released, like COIN and MSTR, reporting for Q4 2024. If the reports are good, it would also stimulate sentiment.
Be cautious in this situation; there is indeed still one more wave of unexpected sentiment stimulation, but don't FOMO too much. The real main bullish wave lasts about 3-5 weeks. Do you remember the previous period from November 6 to December 6? It ended at most by December 18. It softened before hitting a proper climax, so friends should grasp this opportunity well.
So what situation would indicate that the bullish trend is truly over? It would be if Trump does not call for action, and his post-inauguration policies are more aggressive, while showing a bad side towards officials who are friendly to crypto. At the same time, if BTC's on-chain chips begin to break down, meaning breaking below 89,000, then the bull would truly be over. If you tell me the bull market is over now, I don't believe it.
Which cryptocurrencies can be prioritized for bottom fishing during the correction? These three can be focused on!
DOGE
A single tweet can send the price of Dogecoin soaring. This kind of traffic cannot be compared to other coins. More and more merchants are accepting Dogecoin payments, and demand is increasing. If market sentiment picks up, Dogecoin could easily double in price based on its existing fan base and popularity.
XRP
In the financial circle, Ripple has already established connections with many international big banks, and its future looks bright. As soon as the legal disputes with the SEC are resolved, market confidence will return immediately, and a price surge will be a matter of course.
Sui
This public chain's new technology has attracted investment from big players like a16z and Coinbase, and its ecosystem is becoming more and more complete. In the fields of Web3 and DeFi, Sui is a star project. As the ecosystem flourishes, its value will rise, and the growth potential is enormous!
