Good afternoon, brothers and sisters! Bitcoin performed very well today! This morning, Bitcoin broke through the historical high of December 5, successfully surpassing the target range of $1,045,000, peaking at $106,648.
Short-term gains may slow down: Although it has broken new highs, the increase in Bitcoin may be somewhat limited, and a pullback may occur in the short term to solidify the foundation. It is expected that Bitcoin will consolidate around $105,000 for a while. The overall daily trend is upward, but there won't be much room to break the previous high. A significant pullback may occur before December 27.
Investment strategy: Currently, as long as Bitcoin continues to attract capital inflow, the market is considered healthy. The focus can shift to the rebound of ETH, which is expected to drive the rise of other altcoins. If you were previously out of the market, now you can choose an appropriate time to enter and make a short-term swing trade, but be aware that this type of trading carries high risks and can easily lead to losses if you 'buy high'.
Don't FOMO, a common mindset issue during a bull market:
Sold—then chased—caught at the top—got stuck during the pullback.
Avoid the mentality of 'selling low' and then chasing prices, especially during times of high market volatility.
The Trump family increases their investment in DeFi! Buying ONDO, AAVE, and ENA tokens
The Trump family's crypto investments have new developments! They recently continued to increase their holdings in several leading DeFi applications and RWA (real-world asset) projects. According to on-chain data, World Liberty Financial, owned by the Trump family, recently purchased multiple tokens, including ONDO, AAVE, ENA, with a total holding value exceeding $84.8 million.
These projects represent a trend: in the early stages of a bull market, institutional funds often increase market liquidity and TVL through lending leverage. As the scale of funds expands, sector rotation naturally unfolds.
Currently, large institutions like BlackRock and Grayscale are also paying close attention to these RWA assets, and the long-term prospects of these projects are viewed positively by many institutions.
Market risks around Christmas
Regarding market risks during Christmas, everyone should be aware that Christmas is an important holiday in the West, and market liquidity may be affected. Due to the US stock market being closed, BTC may lack market maker support, and if the price of Bitcoin falls, the performance of altcoins may be poor.
Of course, Christmas does not necessarily mean a downturn, but based on past experience, the market often experiences some fluctuations around Christmas, so brothers need to operate cautiously and control their positions reasonably.
Which quality altcoins to buy at the bottom before the end of the year?
In the long term, with new policies emerging after Trump's inauguration and the new SEC chair taking office, the upward trend in the market remains promising. Especially from January to February 2025, this period may welcome a new wave of increases. If Bitcoin continues to attract capital inflow, and mainstream coins like Ethereum gain strength, altcoins may also experience a surge similar to early this year.
Institutional investment strategy
Currently, institutional investors dominate the market trend, especially the Trump family and some large institutions like BlackRock, which are very interested in DeFi and RWA projects. Following these large institutions, one can choose some coins they are investing in, such as: AAVE, ONDO, ETH, BTC, which are currently performing well. If you see that the prices of these coins have not significantly increased, you can also pay attention to coins like UMA and SNX, which also have great potential.
Meme coins and AI-related coins
Of course, in addition to mainstream coins, meme coins are also a hot topic in the market. Both DOGE and FLOKI under Musk are worth paying attention to, especially since DOGE still has potential. If you feel that DOGE doesn't have much room for growth, consider diversifying your investments into smaller positions in meme coins like PNUT and NEIRO.
Additionally, AI-related meme coins may become the fastest-growing segment in the next wave, worthy of close attention.