This week's focus is on three things:
After reading, you might have your own judgment
Instead of believing what the teachers say about internal profits, Bitcoin's big drop
First, the employment situation in the U.S. is okay, but tariffs are still unclear.
In May, more people looked for jobs than expected, and the unemployment rate did not rise, leading everyone to feel that the economy is "stable" and will not collapse.
However, Trump suddenly raised the steel and aluminum tariffs to 50%, and Canada said it would "retaliate." Although China and the U.S. have communicated, the tariff agreement has not been signed, raising concerns in the market about escalating trade frictions.
After Bitcoin surged too much, it took a "breather," with some selling and some buying.
Bitcoin rose 50% from its low in April, reaching a new high, but started to see selling in late May, dropping to around $100,000 this week.
However, it bounced back a bit later, with the entire week showing little change (a slight increase of 0.08%).
• Sellers: Those who made short-term profits and long-term holders who think the price is too high took the opportunity to sell.
• Buyers: Many people transferred Bitcoin from exchanges to their own wallets to hold, equivalent to "picking up bargains after a drop," looking optimistic in the long term.
Additionally, Bitcoin funds have seen some minor withdrawals in the past two weeks (related to fluctuations in the U.S. stock market), but the impact is minimal.
Summary: Short-term fluctuations, long-term view on "interest rate cuts" and policies.
In the current environment, U.S. employment is good.
People are willing to buy risk assets (like cryptocurrencies), but since tariffs are not finalized, there is still some anxiety. The dispute between Musk and Trump is just a "small episode" and does not affect the overall situation.
The adjustment in Bitcoin is due to its previous rapid rise; now supply and demand are "rebalancing," with a drop of about 10%, and trading volume has also decreased, which is not necessarily a bad thing. Whether it can continue to rise depends on two points:
1. When will the Federal Reserve cut interest rates (a rate cut means more money, making the market more active);
2. Are there favorable policies for the crypto industry (such as clearer regulations)?
In the short term, there may still be fluctuations, but in the long term, we must wait for these two signals to materialize and watch whether the "support level" of $100,000 is breached.
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