Now the spot can ambush the DeFi sector, holding for one or two months. After the Federal Reserve cuts interest rates, institutions will invest the money earned from interest into other areas, with DeFi being the first choice. DeFi will definitely explode first, the crypto market is becoming more regulated, and more DeFi projects are emerging. The returns can also outperform the Federal Reserve's interest rates. Once the Federal Reserve cuts interest rates, more money will definitely be allocated to DeFi projects.

I see the entire square is predicting high points, so I will too.

This rise is mainly due to Powell's dovish remarks, the China-US negotiations, the UK-US consultations, China's reserve requirement cut and interest rate reduction, and institutional buying.

Among these, the only factors that can truly provide money to the market are China's reserve requirement cut and interest rate reduction, as well as institutional buying. Of course, the money won't flow into the market that quickly, and it won't be that much; it has to go from the central bank to commercial banks, then to local banks, and from local banks to individuals, before it finally flows into the market.

In other words, the liquidity of the market has not really improved; it’s just that market sentiment has gradually shifted from the panic of the tariff war to a bullish sentiment.

Now, let's talk about institutional buying. Institutions still have the same amount of money, and the Federal Reserve hasn't started easing yet, and Bitcoin can already be pushed to 104,000.

To be fair, if the Federal Reserve does ease, and the market has incremental funds to provide liquidity, I can only imagine how high the peaks could go.

I conservatively estimate that Bitcoin should return to 130,000; 130,000 for Bitcoin should be stable.

I can't estimate any higher; as for Ethereum, it has just crossed the trend line. I am quite optimistic about Ethereum, but since it transitioned from PoW to PoS, Ethereum has either no cost or very low costs, so I dare not rashly overestimate Ethereum, as it could be harmful. However, with market sentiment and incremental funds boosting it, I judge it could reach around 4,000.

I can't definitively say Ethereum could reach 5,000 or even 8,000; that would only be harmful.

As for altcoins, I really can't think of any reason for their rise.

Firstly: all policies, including reserves and so on, are directed towards Bitcoin, and Ethereum gets very little benefit.

Secondly: 99% of the altcoins on the market are useless. Those related to AI, RWA, metaverse, etc., are all just trying to latch on, and are completely useless. Institutions will not scoop them up; of course, they will rise, but in an increasingly regulated market, they will definitely be eliminated.

Personally, I am more optimistic about the DeFi sector. The crypto market is gradually becoming more regulated, and more people are allocating crypto assets; DeFi is a very good asset allocation direction.

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