The overall market is still fluctuating around 10w, with the rise in BTC price leading to an overall increase in market capitalization. As BTC continues to break new highs, it will naturally see more turnover, which is a normal situation.
The current market data is in good condition, so let's continue to look forward to it and maintain the status quo. The next potential breakout point may be the 25-basis-point rate cut on the 18th, which could re-energize the market sentiment and lead to another round of price surge.
As mentioned yesterday, there is still a large net inflow of Bitcoin and Ethereum spot ETF data, and the inflow of Ethereum spot ETF has also hit a new high.
This indicates that US institutions are increasing their buying pressure on Ethereum, with new capital flowing into the Ethereum ecosystem.
Yesterday, Ethereum also experienced a wave of catch-up rally, and from the market performance, it is about to break through the resistance level. Once broken, it may challenge the previous high of $4,800.
The Trump family's capital has also bought ETH, LINK, and AAVE through the cow protocol, boosting the catch-up rally of these projects.
From this round of uptrend, we can see that the better-performing DeFi projects are mainly related to the narratives of US politics and compliance.
Believe in the overall market trend, and follow the trend to make profits. You need to choose the right coins.
(1) Choose the leaders
The value meme, AI, DeSci, Base, SOL, and the old public chain BTC ecosystem in the crypto market, because they have experienced a lot of gains and then corrections, and a lot of declines and then rebounds. Coupled with news and capital flows, there will definitely be a narrative rotation, and the leaders will open the valuation ceiling for all the second-tier to fifth-tier coins, forming a synergistic effect.
The leaders in the crypto market are relatively easy to identify, just look at Binance, which is the largest in terms of liquidity. Then do some further screening, and the basic narrative ETF is basically done (you can also take a look at the top trading volume tokens on platforms like Bybit, and the targets suitable for small-ball leverage based on the three-plate theory).
For small-position leaders, you can use 2-3x leverage to pursue higher risk-reward ratios, which is a bit like chasing on-chain alpha (not recommended for beginners).
(2) Observe the direction of market capital
Based on the current trend, during Trump's 4-year presidency, Bitcoin may experience a long bull run, and I see the possibility of it reaching $1 million.
Bitcoin is the only project suitable for large-position concentrated investment, as its future imagination space is huge.
In terms of operational strategy, you can use the barbell strategy. Large position (80%): BTC, ETH, SOL; Small position (20%): leaders and MEME.
If your capital is not large, it is recommended to focus, grasp the big ones and let go of the small ones, and do not over-diversify. You can concentrate your capital on BTC + MEME coins.
If your capital is relatively large, you can diversify your investments in projects in sectors like AI MEME, DeFi, RWA, and DePIN.
Currently, in addition to deploying ETH and SOL, the two mainstream coins, at low prices,
DeFi leader projects like UNI and Aave are also worth paying attention to!
➜ $UNI
Uni has recently experienced a significant rally, but its historical performance tells us that it still has huge upside potential.
In the previous bull market, Uni's price once soared to a high of $45.
In comparison, the current price range of $17 to $18 is not too high.
Of course, for short-term investors, they may be concerned about Uni's recent rapid rise and the potential for correction. In that case, patiently wait for the correction opportunity and deploy at low prices to lower the cost.
➜ $VIRTUAL
The AI AGENT launch platform on the Base chain.
$VIRTUAL is the native token of the Virtuals Protocol platform, designed specifically for the AI agent ecosystem.
The heat of the AI track is evident, and it has become a narrative consensus throughout the year.
Hot money in the crypto market is gradually flowing into the Base chain, and the capital is mainly pouring into the recent hot track "AI Agents".
The traffic heat of the Base chain, combined with the reliable AI projects, may bring new opportunities.
➜ $ENS
ENS (Ethereum Name Service) is the domain name service of Ethereum, providing users with a unique and easy-to-remember "website" for their crypto assets, thereby simplifying the complex blockchain address interaction.
With the continued prosperity of the DeFi and NFT markets, the application scenarios of ENS are constantly expanding, and its value is expected to further increase. Especially in the context of more and more users and projects needing to establish identities for their assets, the demand for ENS will show a steady growth trend.
Relying on its unique position in the blockchain field and its wide applicability, ENS is considered one of the Altcoins with potential and is worth investors' continuous attention.
➜ $SUI
Sui is a Move-based public chain known for its high-performance transaction processing, and its aggressive strategy includes strongly supporting DeFi and gaming projects, while also introducing the compliant stablecoin USDC. Currently, apart from Solana, Sui is the only public chain that is expanding globally.
The characteristic of a strong Altcoin is that it rebounds and continues to be strong after a brief correction. Sui's price has rebounded quickly after retracing to the EMA21 moving average, and has now hit a new high, so it is worth keeping an eye on going forward.
