BTC broke a new high yesterday!

What is the best way to operate next?

The market situation is quite strange:

BTC broke a new high, but there are not many altcoins following suit,

most altcoins haven't even risen by 5%, and there's no feeling at all.

Although BTC is performing well,

we must remain vigilant.

There are 3 bearish factors that must be guarded against:

(1) The unexpected rebound of the US May PMI released yesterday,

which may accelerate inflation in the coming months,

not favorable for interest rate cuts, and poses a small bearish factor.

(2) Israel is reported to be plotting an attack on Iran's nuclear facilities,

Iran directly stated: The US must “leash its dog”,

if an attack occurs, the US will be held responsible.

(3) Yesterday, the US House of Representatives approved legislation to reduce taxes and increase military spending.

If passed, it will increase the US government's debt by trillions of dollars and continue to expand the government deficit.

As a result, US bond prices will fall, pushing up yields.

The increase in US bond yields poses a certain bearish factor for the crypto space.

To summarize the current state of the crypto market:

In an extremely poor macro environment:

US tariffs are bearish, US stocks are set to fall, and US bond yields are rising.

Large institutions and companies are optimistic about BTC's future, continuously increasing their positions.

Policy is continuously favorable, and the stablecoin legislation is about to be passed.

If BTC surges, altcoins will follow suit with a wave of gains.

But once BTC adjusts, altcoins will drop back down from their gains.

Investing is full of contradictions;

most of the time, there are both opportunities and challenges, it just depends on how we grasp the main factors.

Currently, the favorable policies outweigh the macro bearish factors.

Recently, it is recommended to take a small profit, with a suggested position of 70%.

Focus on holding BTC, with a small portion in altcoins.