May 12, 2025
Significant progress has been made in trade negotiations, with China and the United States each reducing tariffs by 115%. Compared to before the tax increases, the U.S. has raised tariffs on China by 10%, while China has reduced tariffs on the U.S. by 5%. I found a picture and posted it for a general look. The U.S. has achieved certain goals, and for China, it is still acceptable. Moreover, there is room for further negotiations after 90 days, although it is unclear whether it will be an increase or decrease. However, the capital market has already surged significantly as a result. Furthermore, China's stance this time is extremely firm, and coupled with the impressive performance of the J-10 fighter jets in the recent India-Pakistan conflict, it is indeed inspiring.
For us, the key point is to observe the financial market. We should reflect on how the previous panic sentiment arose, which I believe everyone still remembers clearly, that was the sudden swing of the tariff stick by Trump after he took office, catching countries around the world off guard. Subsequently, the stock market went out of control, the cryptocurrency market was affected, and the Nasdaq dropped 26% from its relative high. Bitcoin dipped below $75,000, and Ethereum fell below $1,400, with the exchange rate hitting a new low.
As of today, looking at the current prices, the Nasdaq has rebounded from 14,784 points and is now at 17,000 points. Bitcoin has strongly surpassed $100,000 and is currently pushing toward a new historical high. Ethereum, on the other hand, is even stronger. Whether the main force has completed its accumulation or there has been a change in ownership, the upcoming market trend is worth looking forward to. Of course, the market will not rise unilaterally; it's just that the trend has basically become clear, which is the beginning of a major upward wave.
For those who missed the opportunity to accumulate positions recently, I cannot provide accurate advice for chasing the rise, as the process of rising will also have pullbacks. Sometimes rhythm is still very important. Over the past few months, I have continuously instilled faith in everyone, telling you that the most important thing at the low point is to hold the chips. If you are on board, you should be quite comfortable. Currently, Bitcoin is at $105,000, and Ethereum is at $2,600, which has some pressure. There may be an opportunity to pull back to $100,000 and $2,400.
Thank you for your attention and likes.