May 18 Market Analysis

The current market is trapped in a policy dilemma: Trump wants the Federal Reserve to cut interest rates to stimulate the economy while also demanding that retail giants like Walmart absorb tariff costs themselves (calculations show that bearing a 10% tariff would consume 60% of net profits). This contradictory policy of "wanting low inflation but not allowing price increases" is suppressing corporate profit expectations.

In the BTC market, liquidity continued to dry up over the weekend, with trading volume and turnover rate showing a stepwise decline. Although prices have temporarily stabilized, the lack of trading activity has led to insufficient market depth, weakening the effectiveness of short-term support, as we await a breakthrough next week.