PANews reported on May 14 that HTX Research analyst Chloe (@ChloeTalk1) analyzed in the latest issue of the HTX DeepThink column that the U.S. CPI data for April released on May 13 was lower than expected, reinforcing expectations that the Federal Reserve will cut interest rates this year. At the same time, driven by factors such as the slowdown of the Federal Reserve's quantitative tightening (QT), the return of fiscal funds during the tax season, and the outflow of funds from money market funds from the reverse repurchase agreement (RRP), macro liquidity is being released in phases. There has been a noticeable inflow of funds into the cryptocurrency market, driving significant rebounds in core crypto assets such as BTC, ETH, and SOL in May. Institutional funds continue to flow in, with BTC futures open interest (OI) remaining high, accounting for 3.4% of spot circulation, and the derivative markets for ETH and SOL are also showing strong recovery.
However, in the short term, the profit ratio of short-term holders of BTC and ETH is high, coupled with a dense position of derivatives leverage. If the price breaks through or falls below key technical levels, it may trigger a concentrated profit-taking and forced liquidation chain reaction, increasing the risk of market volatility.
