The new week started with BTC breaking its historical high. Whenever BTC reaches a new high, there are always concerns about an immediate pullback. This concern is mostly psychological, especially when the FOMO sentiment in the Asian market is still hot. What really needs to be focused on is the performance of the US stock market after the opening. If BTC is not sold off after the US stock market opens, the sentiment will continue to improve.
Positive news drives BTC's rise
There has been a lot of positive news recently: for example, MSTR has been included in the Nasdaq 100 index, and institutional funds have been continuously increasing their positions, which has instilled confidence in the market. If the ETF performs well tonight, BTC will most likely continue to rise.
This week, the focus is on the Fed's interest rate meeting
The most important event this week is the Fed's interest rate meeting on December 19. The market expects a 95% probability of a 25-basis-point rate cut, which is good news for the market. If the Fed does cut rates, the market may take the opportunity to surge, especially the previously strong Altcoins (such as PEPE, SOL, PUNT, Doge, etc.).
Powell's speech at the meeting is also worth watching, as it may spark new market sentiment. In addition, Japan is expected not to raise interest rates this month, which is also beneficial to the market.
Christmas is approaching, pay attention to risk control
As Christmas approaches, the US stock market will be closed, and market makers will also be on holiday, so BTC may fluctuate significantly during this period. If BTC falls, Altcoins may also follow suit. Therefore, for the sake of stability, it is recommended to appropriately reduce positions around December 20, control positions, and be more flexible in short-term operations.
However, the volatility around Christmas will not affect the long-term trend. After the New Year, with Trump's inauguration and the new SEC chairman taking office, the market is expected to continue to rise.
Which Altcoins are worth holding in the long run?
Doge
Musk is likely to mention Doge again after taking office in January next year, so it's just a matter of time before it hits a new high. If you feel that Doge is not cost-effective, you can consider Pepe and FLOKI.
Pepe: Strong community consensus, meme culture support, expected 5-fold increase.
FLOKI: The project party is willing to spend money on promotion, such as advertising, CCTV news exposure, and often airdrop, such as the recent MONKY airdrop.
RWA and DeFi tracks
ONDO and Aave: Recognized by the market, with good recent performance. In the future, with the improvement of market sentiment, these two sectors are expected to continue to rise.
AI track
FET: The price of FET previously recommended is around 1.3, and it is still optimistic about doubling.
ACT: Combining AI and meme concepts, it is a new investment direction.
Market performance of Ethereum and SOL
ETH: Although the ETH/BTC exchange rate is declining, the capital inflow into the Ethereum ETF last week reached $850 million, a historical high. Institutions generally predict that ETH will hit a new high before the end of the year.
SOL: The various innovations on the SOL chain, such as meme coins, AI, and DeFi projects, have performed well this year, but the SOL/BTC exchange rate has still fallen back. Nevertheless, SOL may launch an ETF next year, and the market sentiment has already been high. The $200-205 range is a good position to build.
In summary: The Altcoin bull market has just begun
Taking BTC's new high as a reference, most Altcoins have not yet started a major rally. A few coins like XRP, ADA, TRX, XLM, and LINK have started to gain momentum, but many second-tier Altcoins are still hovering at bear market levels, which is an opportunity! Once the timing is right, Altcoins may surge 3-5 times or even 10 times or more in just 7 days.
Investment Advice:
Long-term investors can ignore the short-term volatility around Christmas.
Hold quality Altcoins and an appropriate amount of free positions, and be prepared to operate around the Christmas and New Year period.
In general, the market sentiment is still positive, grasp the timing well, control the risk, and the explosion of Altcoins may be just around the corner!
