This wave of market activity is likely to be the stage for ETH and small-cap coins, so it's time to let go of those stereotypes about small coins.

Why do I say that? Small-cap coins are like amplifiers of liquidity. Over the past three years, during a balance sheet reduction cycle, liquidity has been continuously shrinking, which is why small coins experienced consecutive sharp declines. Now that the Federal Reserve has shifted to an easing policy, regardless of the details of the liquidity injection, the key point is whether the balance sheet is expanding — from December 12th to now, less than a month, the scale has already returned to the level of August last year.

In the coming months, liquidity will only become more abundant. This is the most favorable environment for small-cap coins in three years, so there's no need to worry about liquidity tightening suddenly. Plus, institutional investors are readjusting their crypto allocations for the new year, which will bring ample buying support to the market.

If you prefer a conservative strategy, ETH offers a much higher cost-performance ratio compared to BTC, and ETH's gains are even comparable to most small coins. The next few months could be very crazy. The key is to keep the right rhythm.