The new week began with Bitcoin breaking its historical high, and market sentiment is high. Every time a new high is reached, concerns about a pullback arise, but these concerns are more psychological, especially during periods dominated by FOMO sentiment in the Asian market. The key moment to watch is the market reaction after the U.S. stock market opens tonight, as changes in the market may become more valuable for reference.
Current market bullish factors include MicroStrategy being included in the Nasdaq 100 index. This news has not only attracted more institutional funds but also further consolidated the market's confidence in Bitcoin. With sustained inflows of capital, expectations for further Bitcoin price increases are also growing. Additionally, the most important event this week is the Federal Reserve's interest rate meeting on the 19th, where the market currently predicts a greater than 95% probability of a 25 basis point rate cut. A rate cut is usually a positive signal for risk assets, and if market expectations are fulfilled, Bitcoin may leverage this momentum to reach higher prices.
The altcoin market may once again receive attention. In the current market where rotation effects are evident, funds tend to flow towards previously strong-performing assets, such as PEPE, SOL, PUNT, DOGE, etc. These altcoins have shown good resilience in prior rotations, and if market liquidity continues to flood, they may again become targets for capital chasing.
Although market sentiment remains positive, caution is needed regarding the risk of liquidity decline as the holidays approach, as well as potential pullback pressure after events conclude. Spot holdings should focus on cost control while leaving enough liquidity for possible volatility. Around the Federal Reserve's interest rate meeting, the market may experience a surge stimulated by sentiment, with Powell's speech becoming a key factor influencing market sentiment.
As Christmas approaches, the market still has the potential to rise. The sustained strength of mainstream coins may provide more space for the rotation of altcoins. If the market can maintain its current positive sentiment, both Bitcoin and altcoins are expected to rise further this week.
Is the altcoin bull market encountering a rate cut trend at its early stage? Which altcoins are worth holding?
ENA
As the Ethena ecosystem continues to expand, its utility and demand are also increasing. A recent series of important collaborations further highlights this trend while injecting new momentum into the development of the ecosystem.
Among them, the stablecoin jointly developed by BlackRock and Ethena has become the focus of industry attention and has announced participation in the MakerDAO competition. This move not only demonstrates traditional financial giants' recognition of blockchain technology but also highlights Ethena's important position in the decentralized finance (DeFi) sector.
In addition, Ethena has reached a deep cooperation with the largest on-chain options platform Derivexyz to jointly develop options and structured financial products based on the USDe stablecoin. This collaboration not only utilizes Ethena's liquidity advantages but also fully explores the composability of USDe, thereby creating unique financial primitives. The launch of such innovative products is expected to attract more users and funds, further driving the ecosystem's flywheel effect.
ONDO
Ondo Finance is seen as a leader in the tokenization field supported by BlackRock, with its core narrative focusing on integrating traditional finance into the on-chain financial system. This innovative model not only means that Ondo is capable of bringing the liquidity of traditional markets into the blockchain but also gives it a unique advantage in participating in traditional financial investments through cryptocurrency as collateral.
Ondo is committed to building the next generation of financial infrastructure, changing the way traditional and blockchain finance connect by improving market efficiency, enhancing transparency, and expanding accessibility. This vision drives Ondo to become 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 with Sol Tia, and its team and technical resources are highly recognized in the industry. Coupled with BlackRock's strategic backing, Ondo's leading position in the field of tokenization and on-chain finance is further consolidated.
AAVE
Aave is a decentralized lending protocol based on Ethereum, widely regarded as the leader in the DeFi lending space. Through Aave, users can flexibly borrow and lend various digital assets, including stablecoins and altcoins, with its permissionless operating model and efficient asset utilization attracting a large number of DeFi users. The governance of the Aave protocol is the responsibility of AAVE holders, fully reflecting the concept of decentralized governance.
Recently, the Trump family office World Liberty announced the inclusion of AAVE, Ethereum (ETH), and Chainlink (LINK) in its investment portfolio, which undoubtedly injects new confidence into the market. As a highly watched institutional investor, World Liberty's actions further solidify Aave's position in the minds of investors and enhance the market's attention on the AAVE token.
