Recently, the cryptocurrency market has been quite lively, with various factors intertwining, and the trends are hard to predict as they fluctuate up and down.
First, let's talk about Bitcoin. The amount of Bitcoin on exchanges is decreasing, and it is clear that people are more willing to hold onto it for the long term rather than selling. This situation may help sustain Bitcoin's price in the short term.
Next, looking at the broader environment, the global economic situation has a significant impact on cryptocurrencies. Currently, the trade relations between China and the United States are tense, and the market lacks direction, but this may lead more people to consider Bitcoin and similar crypto assets as good hedges. If the U.S. implements fiscal stimulus or if the dollar weakens, people may believe that it can better withstand inflation, thereby solidifying its position.
However, factors like interest rates, inflation, and geopolitical issues are quite volatile, which adds pressure to the market in the short term. But looking at the long term, cryptocurrencies may gradually become more solidly integrated into institutional investment portfolios.
Additionally, the tensions between Israel and Iran seem to have been mostly digested by the market, and there may not be as many surprises going forward, allowing the market to stabilize. If U.S. inflation data can decrease, the Federal Reserve's policies might loosen, which would also be beneficial for cryptocurrencies.
Looking ahead, Coinbase expects the market to improve in the second half of 2025, mainly due to economic growth, increased participation from businesses and institutions, and clearer regulatory policies pushing things forward.
Interestingly, the U.S. has announced plans for a "cryptocurrency strategic reserve". As soon as this news broke, related cryptocurrency prices surged, and there has been a strong positive reaction from the public regarding this matter.
Overall, while the short-term may still be bumpy, as the global economy evolves and institutional investors become more interested, the cryptocurrency market may usher in new opportunities in the future.
Market trends do not believe in fancy rhetoric; only by following precise strategies can one grasp the pulse of wealth, keeping pace without any ideas.
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