Federal Reserve Shift: Rate Cut Pace May Slow
After the interest rate cut in December, Federal Reserve officials have hinted at possibly slowing down or even halting further rate cuts. The market needs to adjust expectations to adapt to a potential pause in rate cuts next year. The Fed's attitude change is an important signal for investors.
Bitcoin's strategic position is rising
With former President Trump proposing to classify Bitcoin as a national strategic reserve, Texas and Pennsylvania have already begun taking action. A third state has not yet been fully confirmed, but the trend is irreversible. Bitcoin is transitioning from an investment asset to a national strategic tool.
An increasing number of countries may incorporate Bitcoin as part of their reserve plans, a trend that will further drive Bitcoin's bull market in the coming years. In the long run, Bitcoin's price potential far exceeds market predictions.
Market Trend: Confidence is Key
Bitcoin is currently performing strongly, with market predictions suggesting its price could reach between $120,000 and $130,000 this month. As long as there are no significant declines in Bitcoin's price, market confidence will continue to be maintained.
On the other hand, altcoins have recently seen slight adjustments. For investors, instead of chasing highly-priced coins, it may be better to focus on those that have adjusted for a longer time or still have potential after a sharp decline, as this could present greater opportunities.
Investment Opportunity Analysis
STX
STX has recently shown strong growth momentum. Technical analysis indicates that the STX price has entered the golden Fibonacci zone, which is usually a precursor to a breakout. Meanwhile, the bullish divergence on the MACD indicator also supports the continuation of the upward trend.
Additionally, the correlation between STX and Bitcoin is as high as 0.86, meaning it can provide investors with additional profit space from Bitcoin's volatility. The current price of STX is $2.44, and technical analysis shows that its overhead resistance level is at $2.64 (0.786 Fibonacci level). If it breaks through, the increase could be as high as 39%.
1INCH
1INCH is currently priced at $0.4836, with a slight increase of 1.60% in the past 24 hours. Its market capitalization is $676 million, and both trading volume and activity have significantly increased, indicating growing market interest in the token.
From market performance, 1INCH is in a stable consolidation phase, which could be an accumulation period for future increases. Given its liquidity and investor interest, 1INCH is worth long-term attention.
APE
APE, as a core project supporting decentralized communities in Web3, currently has a price of $1.57, up 2.31% in the last 24 hours. Technical indicators show that APE's price is more than 40% above the 200-day moving average, indicating a relatively healthy medium to long-term trend.
Although APE's short-term fluctuations are limited, its stable performance and high liquidity make it an option that cannot be ignored in the cryptocurrency market in the long run.
STRK
The price of STRK is $0.6299, up 1.03% in the last 24 hours. As a second-layer solution for Ethereum, StarkNet utilizes ZK-Rollup technology to significantly enhance scalability while ensuring security, addressing the congestion issue of the Ethereum network.
STRK has shown stable performance over the past month, demonstrating high investment attractiveness. As the demand for second-layer solutions increases, StarkNet may become an important part of the Ethereum ecosystem.
DYDX
The current price of DYDX is $2.09, up 1.83% in the last 24 hours. Its technical indicators show that the price is nearly 40% above the 200-day moving average, and there have been 19 days of increases in the past 30 days.
Despite the short-term RSI showing a high likelihood of sideways consolidation, the liquidity and market activity of DYDX indicate its medium to long-term investment potential.
Summary
Bitcoin's national strategic position and the changes in Federal Reserve policy are having a profound impact on the market. In this context, long-term investors can focus on crypto assets with growth potential such as STX, 1INCH, APE, STRK, and DYDX. Whether it's Bitcoin or altcoins, rational investment and avoiding chasing price increases are key to achieving returns.