Macroeconomic factors: The performance of US economic data affects the market's expectations of the Federal Reserve's monetary policy. The recent fluctuations in US GDP and inflation data have led to speculation in the market about whether the Federal Reserve will continue to cut interest rates. If economic data is weak, the Federal Reserve will increase its interest rate cuts, and market liquidity will increase, which may drive up cryptocurrency prices, because some funds will seek new investment channels, and the attractiveness of the crypto market will increase accordingly; conversely, if economic data is positive and expectations of monetary policy tightening increase, funds in the crypto market may flow out. At the same time, global economic uncertainties, such as geopolitical conflicts and trade frictions, will also cause some investors to use cryptocurrencies as safe-haven assets, affecting market supply and demand and price trends.
Regulatory dynamics: The global crypto regulatory environment is still in the development stage. The U.S. Securities and Exchange Commission (SEC)'s regulatory attitude towards crypto assets is still the focus of market attention. Any policy changes on whether cryptocurrencies are recognized as securities and the compliance of related trading platforms may have a significant impact on the market. For example, if the SEC strengthens its supervision of cryptocurrency transactions and restricts certain trading behaviors, it may lead to a decline in market trading volume and increased price volatility; while the EU's Crypto-Asset Market Regulation (MiCA) implementation details are gradually clarified, and strict requirements are imposed on service providers in terms of disclosure standards, consumer rights protection and anti-money laundering. On the one hand, this may raise industry barriers and reduce market chaos, but on the other hand, it may also affect the enthusiasm of market participants in the short term. In the Asia-Pacific region, China's policy on digital currency remains stable🇨🇳🇨🇳
