Bull Market Rises Again, Analyze the Dazzling Upward Trend of This Round

[TL；DR]:

Bitcoin has recently set a new historical record, rising above $80,000 for the first time.

From the volatility of the Altcoin sector, Meme remains the only one leading the gains, while GameFi, DeFi, AI and other sectors have also seen significant increases, becoming hot topics in recent times.

From a historical perspective, generally, after the Bitcoin halving event, the fourth quarter usually performs well.

Introduction

Taking Trump’s victory in the current US presidential election as an opportunity, the crypto market has recently embarked on a new strong upward trend.

Against the backdrop of a general rise in the market, various sectors surged and continued to rise, and the greed index hit a new high, which was dazzling for a time. This confirmed our bullish view in the article “Trump Won the US Election, Will Crypto Market Embrace Bull Market Frenzy Again?“ at the beginning of the month. This article summarizes the recent market uptrend clues and sector rotation logic, revealing the recent market volatility pattern.

BTC Exceeded $80,000, ETH Rapidly Strengthened

Since Trump was elected as the next President of the United States, the crypto market has experienced unprecedented strength. Amid market expectations of potential regulatory and fiscal policy easing during the Trump administration, funds have significantly flowed into the US stock and crypto markets. In addition, last Friday’s interest rate meeting continued to cut interest rates by 25 basis points, further boosting market sentiment and opening up upward space for the crypto market. Bitcoin has risen above $80,000 for the first time. This breakthrough was achieved over the weekend without the support of spot ETFs, demonstrating the market’s strong momentum.

From a financial perspective, the transaction fees on the Bitcoin chain continue to fall and remain low, but the net inflow of funds shows a significant growth trend. In the past month, it has reached 324%, and in the past week, it has reached 41.96%. This undoubtedly indicates that the market’s confidence in Bitcoin is constantly increasing, and funds are actively pouring in.

From a technical perspective, Bitcoin’s upward channel has been opened, and all kinds of information points to positive news. The implication of a bull market return is already very strong. Of course, we can consider the continuous upward trend below as the starting point of this wave of rise. If the price can fall back into this area again, it may bring a second takeoff opportunity.

Source: Gate.io

Compared to Bitcoin, Ethereum has finally become relatively strong. Recently, funds have started overflowing into the Ethereum market, driving its exchange rate to continue rising. Ethereum broke through the $3,000 integer mark over the weekend. This round of rebound not only solves Ethereum’s long-standing slump, but also shows the market the potential and value of Ethereum.

Source: Gate.io

Although the SEC has again postponed its decision on whether to approve spot Ethereum ETF options, the news does not seem to have affected market confidence in Ethereum. On the contrary, in the current exciting context, this decision may further stimulate the speculative enthusiasm of the market to lay ahead, leading to more funds pouring into the Ethereum market.

Source: coinglass

Meme Continues to Lead Gains, DeFi Revival Is Imminent

From the volatility of the Altcoin sector, Meme remains the only one leading the gains, which has become a standard feature of this bull market; Of course, GameFi, DeFi, AI, and other sectors have also seen significant increases, especially DeFi, which has been dormant for a long time. Recently, there has been a lot of public opinion about its revival, and it has indeed become a hot topic in recent times.

Source: CoinGecko

We have written several articles about the Meme section, and last week’s article, “With Concepts Constantly Emerging, What Are the Trending Narratives on the Meme Track Recently?“ sorted out the recent popular Memes.

As of the writing date, the Meme sector has risen by as much as 57% in the past 7 days, with MOODENG, LUCE, and PEPE leading the market with gains of 183%, 156%, and 130%. In fact, in recent times, both the well-established DOGE, SHIB, PEPE, and emerging WIF, NEIRO, MEW, MOG, BOME, etc. have experienced a general rise, and some new currencies have even set new highs one after another. It is worth noting that AI+Solana+Meme, represented by GOAT, remains the most persistent Meme sub-sector.

The DeFi sector, represented by AAVE, saw a significant increase, with concept tokens such as on-chain derivatives, income cultivation, and liquidity collateral experiencing significant gains. Benefiting from the favorable listing on large exchanges, DRIFT, COW, and others led the DeFi sector with weekly gains of 286% and 81%, respectively; In addition, the liquidity lending protocol CETUS has also added high-performance L1 public chain SUI to lead the public chain track, becoming a market hotspot with an astonishing increase of 144%.

Source: Gate.io

Although the liquidity (re-) staking sector belongs to the broad definition of DeFi, we need to analyze it separately due to its unique, innovative narrative in this bull market. After experiencing the glory of Q1, the liquidity (re-) staking track fell into an overall sluggish atmosphere with the market, and new narratives were abandoned by the market, with Meme occupying more attention. However, with the recent strong rebound of LDO, BB, REZ, and other industries, this track is gradually regaining vitality. Of course, whether the subsequent performance can be sustained still depends on whether Eigenlayer (EIGEN) can expand its AVS business and innovate more technology in the context of a bull market.

In addition, the GameFi sector has also been popular in the market due to its low valuation, with a market cap increase of 29% in the past 7 days. The leader of this sector is the recently launched X Empire (X), a click-to-earn game based on Telegram. It was first launched on various trading platforms in late October and has recently risen after a brief adjustment, becoming a hot topic project different from the peak of TON chain small games such as DOGS. Of course, the infrastructure of blockchain games such as IMX, BEAM, and ASX has naturally risen, but TON Chain’s point-earning games are still the core of blockchain games in this cycle.

Source: Gate.io

Is There Any Hidden Danger in the Future Market Under the Heat?

Overall, Bitcoin’s high rebound before its breakthrough, combined with the favorable news of Trump’s election, has laid the foundation for the recent market improvement through the resonance between technical and fundamental aspects.

Especially with Trump’s election triggering the so-called ‘Trump trade,’ the market generally expects him to relax regulations and adopt fiscal easing policies. In addition, Trump’s previous clear support for Bitcoin has strengthened the linkage effect between Bitcoin and the US stock market, and Bitcoin’s performance is significantly stronger than that of the US stock market.

This can be verified from the flow of funds. Last Friday, within five trading days, the US stock market added more than $2 trillion in new funds, and the Bitcoin spot ETF also saw a new high in daily net inflows. The influx of funds has changed the original bull market pattern for traders, and Bitcoin has effectively broken through historical highs and entered a comprehensive bull market state.

Source: coinglass

From a historical perspective, the fourth quarter usually performs well after the Bitcoin halving event. In addition, Bitcoin’s closing in September also achieved its best performance in history, strengthening investors’ confidence in the future.

Source: bitbo.io

Although the market is generally optimistic about the prospects of Bitcoin, there are still some differences. According to experience, if there is a significant fluctuation in the market over the weekend, it often fills the price gap in the future. Judging from the pressure of BTC hitting the double integer level of $80,000 and ETH breaking through the $3,000 mark, the market may face a brief expectation of a pullback. Therefore, investors must be cautious about market fluctuations and avoid irrational investment behavior in an overheated market.