The new week began with Bitcoin breaking its historical high, and the market sentiment is high. After each new high, there are always concerns about a pullback, but these concerns are more psychological, especially during the periods when the FOMO sentiment dominates in the Asian markets. The key moment to watch is the market reaction after the US stock market opens tonight, as the market changes then may be more valuable for reference.
The current positive market factors include MicroStrategy being included in the Nasdaq-100 Index, which not only attracts more institutional capital but also further strengthens the market's confidence in Bitcoin. With the continuous inflow of funds, the market's expectation for further upside in Bitcoin is also increasing. In addition, the most important event this week is the Federal Reserve's policy meeting on the 19th, and the market currently predicts a 95% probability of a 25-basis-point rate cut. Rate cuts are usually positive news for risk assets, and if the market expectation is realized, Bitcoin may have the opportunity to challenge higher prices.
The Altcoin market may once again come into focus. In the current market with obvious rotation effects, funds tend to flow into the targets that have performed strongly in the previous rotation, such as PEPE, SOL, PUNT, and Doge. These Altcoins have shown good resilience in the previous rotation, and if market liquidity continues to be abundant, they may once again become the targets of capital chasing.
Although the market sentiment remains positive, we need to be alert to the risk of reduced liquidity due to the approaching holidays, as well as the potential pullback pressure after the event ends. Spot holdings should focus on cost control, and sufficient liquidity should be reserved for possible volatility. Before and after the Fed's policy meeting, the market may use emotional stimuli to trigger a wave of surges, and the content of Powell's speech will be a key factor affecting market sentiment.
As Christmas approaches, the market as a whole still has the potential to surge higher. The continued strength of the mainstream coins may provide more room for Altcoin rotation. If the market can sustain the current positive sentiment, both Bitcoin and Altcoins are expected to rise further this week.
Altcoin bull market meets rate cuts? Which Altcoins are worth holding?
ENA
With the continuous expansion of the Ethena ecosystem, its practicality and demand are also constantly increasing. The recent series of important collaborations have further highlighted this trend and injected new momentum into the ecosystem's development.
Among them, the stablecoin co-developed by Blackrock and Ethena has become the focus of industry attention and has announced its participation in the MakerDAO competition. This not only demonstrates the recognition of traditional financial giants for blockchain technology, but also highlights Ethena's important position in the DeFi field.
In addition, Ethena has reached in-depth cooperation with the largest on-chain options platform Derivexyz, and they will jointly develop options and structured finance products based on the USDe stablecoin. This cooperation not only utilizes Ethena's liquidity advantages, but also fully taps the composability of USDe, thereby creating unique financial primitives. The launch of these innovative products is expected to attract more users and capital, further driving the flywheel effect of the ecosystem.
ONDO
Ondo Finance is seen as a leading player in the tokenization field supported by BlackRock, with its core narrative focused on integrating traditional finance into the on-chain financial system. This innovative model not only means that Ondo has the ability to bring the liquidity of traditional markets into the blockchain, but also gives it the unique advantage of participating in traditional financial investments using cryptocurrencies as collateral.
Ondo is committed to building the next-generation financial infrastructure, changing the way traditional and blockchain finance are connected by improving market efficiency, enhancing transparency and expanding accessibility. This vision has made Ondo an important player at the intersection of on-chain and off-chain capital.
It is worth mentioning that Ondo shares the support of the same top Wall Street market maker as Sol Tia, and its team and technical resources are highly recognized by the industry. In addition, the strategic support of BlackRock further consolidates Ondo's leading position in the field of tokenization and on-chain finance.
AAVE
Aave is an Ethereum-based decentralized lending protocol, widely regarded as the lending leader in the DeFi field. Through Aave, users can flexibly borrow and lend various digital assets, including stablecoins and Altcoins, and its permissionless operation model and high asset utilization rate have attracted a large number of DeFi users. The governance of the Aave protocol is the responsibility of AAVE holders, fully embodying the concept of decentralized governance.
Recently, the Trump family office World Liberty announced that it will include AAVE, Ethereum (ETH) and Chainlink (LINK) in its investment portfolio, which undoubtedly injected new confidence into the market. As a closely watched institutional investor, World Liberty's move further consolidates Aave's position in investors' minds and also increases the market attention on the AAVE token.
