Bitcoin staged a dramatic V-shaped reversal, surging by 6000 points in a single day! In Lao Dong's view, the following three key factors are the main drivers of the market

1. Shift in funding sentiment: For the past few days, the 8-hour funding rate has consistently been negative, with short positions continuously accumulating, creating a strong bearish sentiment in the market, which set the stage for a price reversal;

2. Easing of the Israel-Palestine conflict: Trump's involvement 'forced' both sides to reach a ceasefire agreement, promoting safe-haven funds to reallocate into the crypto market;

3. Favorable monetary policy: Market expectations for a Fed rate cut in July have significantly increased, and if realized, it could lead to two 25 basis point cuts within the year, with expectations of liquidity easing stimulating Bitcoin prices.