The recent declines were all the kind of "pin-poking and contract-exploding" wash-out market. Judging from the capital distribution chart of the contract, the main force will "explode" whichever side has the most leverage, which can basically be predicted accurately.
Through these operations, the main force is cleaning out some chips with excessive leverage and lack of confidence, preparing for the next wave of increases.
From a macro-trend perspective, we are now in the middle to late stages of a bull market. Before Trump takes office on January 20, the market is still expecting him to fulfill his election promises.
Until this consensus is broken, Bitcoin will continue to maintain its upward trend as long as there is no greater negative news.
Judging from the ETF data: Yesterday, the Bitcoin spot ETF had a net inflow of 604 million US dollars, and the Ethereum spot ETF had a net inflow of 276 million US dollars.
This week, Ethereum's spot ETF inflows also hit a new high.
This shows that U.S. institutions’ buying of Ethereum is increasing, and new funds are pouring into the Ethereum ecosystem.
Yesterday, Ethereum also saw a wave of compensatory gains. Judging from the market, it will soon break through the resistance level. Once it breaks through, it may hit the previous high of US$4,800.
The Trump family’s funds bought ETH, LINK, and AAVE through the COW protocol, which also led to a compensatory rise in the prices of these projects.
It can be seen from this round of increases that the better-performing DeFi projects are mainly related to U.S. politics and compliance narratives.
What we should do now:
The current copycat market has completed the first stage, filling the gaps and pulling up all undervalued stocks, so that the overall holding cost of the market has increased on average;
Then we will enter the second stage. Whether it is looking for the main line or the bull market engine, there will be a group of copycats leading the entire copycat market forward, just like UNI and DOT in the last round.
After the second phase, there will be a third phase of the Shanzhai market, which will be crazy and Shanzhai prices will rise across the board;
The only thing we need to do is to be patient!
Judging from the current trend, Bitcoin is likely to experience a long bull run during the four years of Trump’s administration. What we need to do now is to pick strong currencies: those that either fall less or fall sharply but recover quickly, and those that are the main narrative and strong narrative sectors.
In the current market environment, the DEFI sector has the most outstanding application value and is the most complete development track.
Judging from the recent independent market trends of DEFI projects, including Trump's purchase of link and aave, there is a high probability that Ethereum will take an independent trend in the future to lead the altcoins. Why do I say that? Judging from Trump's purchase of DeFi projects, he is also optimistic about Ethereum in disguise.
The top DeFi projects on the market are basically built on the Ethereum ecosystem. Many large institutions now still prefer Ethereum, such as Coinbase's Base chain.
Because Ethereum has all-round security advantages for DeFi, not only the degree of decentralization of the network, but also a large number of security cases, audits and white hat resources, which are very important for DeFi and large institutions.
The layout of copycats has already begun before Trump took office. I am still looking forward to the changes in the crypto circle after Trump officially takes office. At present, it is still relatively friendly, and there will be a lot of room for imagination in the future!
DeFi leading projects such as UNI and Aave are worth paying attention to! ! !
➜ $UNI
Uni has experienced a significant rally recently, but its historical performance tells us that it still has huge room to rise.
During the last bull run, 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 notice that Uni has risen a lot recently and there is a certain risk of a correction. Then wait patiently for the correction opportunity and buy at a low point to reduce costs.
➜ $AAVE
Lending leader AAVE
Aave is an Ethereum-based money market that supports users to borrow and lend various digital assets ranging from stablecoins to altcoins. The Aave protocol is governed by AAVE holders.
Trump family office World Liberty added AAVE, Ethereum (ETH), and Chainlink (LINK) to its portfolio, further fueling market interest and confidence.
➜ $VIRTUAL
Base chain’s AI AGENT launch platform.
$VIRTUAL is the native token of the Virtuals Protocol platform, designed for the AI agent ecosystem.
The popularity of the AI track is obvious to all, and it has become a narrative consensus throughout the year.
Hot money in the cryptocurrency market is gradually flowing to the Base chain, and the funds are mainly flowing into "AI Agents", one of the recent hot tracks.
The popularity of Base chain traffic, coupled with reliable AI projects, may bring new opportunities.
➜ $PEPE
$PEPE is not just a popular coin, it has great potential in DeFi projects and NFT platforms, and has the ability to build its own ecosystem. I hope to see 10x
With the breakthrough of the broader market and the recovery of the market, Pepe is expected to make a comeback and everyone can pay attention to it, hoping to set new highs.
This can be seen from the recent behavior of many whales who have been buying Pepe at the bottom.
These whale investors placed more than 50 orders in a row within just one hour, which shows how optimistic they are about Pepe's future.
In terms of operation strategy, you can use the barbell strategy. The large position (80%) is configured in: BTC, ETH, SOL; the small position (20%) is configured in leading and MEME.
If you don’t have a lot of money, it is recommended that you focus on the big and ignore the small, and don’t spread it too much. You can concentrate your funds on BTC+MEME coins.
If you have a large amount of funds, you can distribute them in projects in sectors such as ai meme coin, defi, rwa, depin, etc.
