(Friday) Crypto Year of the BULL. Bitcoin to massive rally?

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Description

Latest Bitcoin, Ethereum and Cryptocurrency news and trends. We take a look at the key events affecting the blockchain sector and review market movements. Combining both fundamental analysis and techn...

AI Analysis

This year marks the "Year of the Bull" for crypto, defying traditional Chinese New Year dips and instead seeing significant market surges for Bitcoin and altcoins. The excitement stems from growing institutional and corporate interest, strong DeFi innovation, and a noticeable surge in Asian market bullishness, setting the stage for a potentially prosperous year in the crypto space.

Here's a breakdown of the key topics and insights:

* Chinese New Year & Market Trends: Contrary to typical fears of a "Chinese New Year dump" due to people liquidating crypto for holiday expenses, the market actually saw two major pushes upward. This year is the "Year of the Ox" or "Bull," which is seen as a positive omen for the crypto market. The lack of a dump and subsequent surge is particularly exciting because Chinese people often discuss crypto with family during the holidays, potentially bringing more uninitiated individuals into the space. The Chinese government even acknowledged Bitcoin and Ethereum as top-performing assets on national TV last year, driving interest. This "Asia bull factor" is expected to be very significant, especially with China's digital currency (DCEP) launching this year, inspired by Bitcoin and Ethereum.
* Bitcoin's Strong Performance: Bitcoin is aggressively approaching a new all-time high of $48,000, with a support level established at $42,000. The next major targets are $48,000 and breaking through $50,000. Many uninitiated people are still unaware of Bitcoin's current price, often thinking it's much lower, highlighting the market's rapid growth. The presenter, who strategically de-risked before Chinese New Year, quickly closed out short positions after seeing the market's upward momentum, advising against shorting in the current environment.
* Ethereum's Rising Importance: Ethereum is also moving strongly, reaching around $1,800. It has a solid backbone due to significant activity in DeFi, non-fungible tokens (NFTs), and decentralized insurance. The core idea is that Ethereum allows for a programmable money ecosystem that mimics and potentially surpasses traditional finance by being decentralized and permissionless, offering a level playing field for all participants, unlike centralized entities like Robinhood that can halt trading.
* Altcoin Momentum: Many altcoins are pumping, including:
* Enjin ($ENJ): Saw a surge after announcing further integration with Microsoft Azure for their space game, using non-fungible tradable tokens for game items, a huge and exciting field.
* VeChain ($VET): An enterprise adoption focus for anti-counterfeiting, it's a long-term hold that is now gaining traction as the market picks up.
* Yearn Finance ($YFI): Considered one of the first DeFi "blue chips," it recovered strongly to $46,000 after a $1 million hack. This demonstrates the resilience and corrective nature of the DeFi space, where failures lead to improvements. DeFi is viewed as a high-innovation, high-risk playground, offering significant opportunities for those who understand it while many still don't.
* PancakeSwap ($CAKE) and Binance Smart Chain (BSC) Ecosystem ($BNB): PancakeSwap has seen phenomenal growth, riding the wave of the Binance Smart Chain ecosystem. BSC is highlighted as a great starting point for new crypto users interested in DeFi or farming because transaction fees are significantly cheaper (around 2 cents) and faster than Ethereum's current high fees (around $24 for a medium contract). It serves as a good "practice ground" before navigating the more expensive Ethereum network.
* Major Corporate & Institutional Adoption:
* Twitter CFO: Confirmed the social media giant is considering adding Bitcoin to its balance sheet and exploring paying employees and vendors in Bitcoin, a direct response to Tesla's recent move and a sign of increasing corporate interest.
* BNY Mellon: America's oldest bank will custody Bitcoin, a crucial development for institutional investors who cannot self-custody funds due to security and theft concerns. This paves the way for greater institutional adoption.
* Mastercard: Announced it will support select cryptocurrencies directly on its network this year, following Visa's lead, solidifying crypto's place in mainstream payment networks.
* Amazon: Plans to launch a cryptocurrency payments product in emerging countries. This is especially significant given the high interest in Bitcoin in developing nations like Nigeria, which is currently the top search interest for crypto globally. This could help Amazon save on currency transaction fees.
* Uber: While not planning to buy Bitcoin with its cash reserves, it is considering accepting it as payment, another indicator of mainstream companies exploring crypto integration.
* Altcoins: High Risk, High Reward:
* DuckDao ($DUCK & $DUCKDIME): The ecosystem's tokens are performing well despite initial worries when prices dropped. They are considered high-risk, high-reward "innovation zone" assets.
* Utrust ($UTK): Recently added to Coinbase custody, Utrust enables direct crypto payments on websites, addressing a major pain point in the crypto space. The presenter actively uses crypto payment options to support their adoption.
* Linear Finance ($LINA) & DODO: Mentioned as projects the presenter holds, emphasizing holding (diamond hands) through market fluctuations.
* General Altcoin Strategy: The presenter holds around 40 altcoins and notes that their altcoin portfolio has significantly outperformed Bitcoin and Ethereum, growing in ratio. They advise against going "all in" on new projects, suggesting allocating small amounts of capital and conducting thorough research. They use a "tier" system to evaluate project founders (e.g., "god tier" like Sam Bankman-Fried, "tier one" for strong understanding of community and finance, "tier two" for those with specific strengths but not broad understanding) to guide investment decisions.
* Psychological Impact of Crypto Volatility: The extreme fluctuations in crypto market value can be emotionally challenging. Daily portfolio swings mean one can gain or lose an entire year's salary in a few days. The presenter emphasizes the importance of psychological strength and self-awareness to avoid making emotional, impulsive decisions, especially when feeling euphoric. It's crucial for new entrants to understand this emotional toll.
* Managing Risk and Gambling: The crypto market, especially altcoins, can feel like gambling due to rapid price movements and occasional "rug pulls" (developers abandoning a project and taking all funds). However, the distinction for legitimate projects lies in their "value creation" and "novelty," building something new and meaningful in the space. It's vital to research projects thoroughly and allocate capital cautiously, especially for new, unproven ventures.
* Crypto Withdrawal Pro-Tip: To avoid high Ethereum transaction fees when withdrawing crypto, use FTX exchange as a "big wallet" because it offers free withdrawals for many assets like USDC.
* Layer 2 Scaling Solutions for Ethereum: Ethereum is working on two main scaling solutions to combat high transaction fees: Ethereum 2.0 (a "mega highway" to relieve congestion) and Layer 2 solutions (like "flying cars" for mega-cheap, instant transactions). Examples include ZKSwap, which offers Uniswap functionality on Layer 2. While still in testing phases, these solutions will significantly improve Ethereum's usability by providing instant and nearly free transactions.
* Downsides of Coinbase: While stable and highly regulated, Coinbase reports all transactions to tax agencies like the IRS, making tax reporting complex for users in jurisdictions with capital gains tax. For example, in Hong Kong, where there's no capital gains tax, this isn't an issue.
* Information Gathering: Clubhouse is highly recommended as a primary source for real-time crypto discussions and discovering new projects, offering a "big conference" experience where people, including project creators, share insights. It's essential to keep ears close to the ground for early information.
* Mindset & Tribalism: It's important to avoid tribalism in tech or crypto (e.g., Android vs. Apple, PS5 vs. Xbox). Staying open-minded and willing to explore all options leads to better understanding and opportunities. Similarly, be cautious when people excessively push a project, as this can be a sign of a pump-and-dump scheme.

Transcript

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