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Market Signal Analysis
Bitcoin's Dominance Declines: On November 30, Bitcoin's market dominance fell below a two-year support line, seen as a signal for the start of altcoin season. 1
Federal Reserve Policy: The expectation of an interest rate cut on December 19 may inject liquidity into the market, driving up mainstream coins and altcoins. 2
Policy Expectations: The expectation of policy easing in the cryptocurrency industry may arise before Trump's inauguration (January 20, 2025), with Ethereum's target price predicted to reach $4000.
Historical laws reference
12 Months After the Election: Historically, the 12 months following a U.S. election typically mark a bull market cycle for cryptocurrencies, with altcoins (such as ETH) returning about 3 times that of Bitcoin. 3
Current cycle performance: Bitcoin rose 46% within 30 days after the 2024 election, and Ethereum rose 58%. Further increases are expected.
Risks and Recommendations
Regulatory changes: After the resignation of SEC Chairman Gensler, the new officials may adopt more supportive policies for cryptocurrencies, but attention should be paid to specific measures. 3
Technical indicators: Pay attention to the Bitcoin halving cycle and market sentiment, avoid overly relying on a single signal. 12
The cryptocurrency market is highly volatile. It's advisable to plan your investments according to your own risk tolerance. Wishing you successful investments!