Something big has happened! Three major benefits in the crypto world, but these two risks could interrupt the rebound?
Recently, the crypto market has been driven by three major benefits: the Fed's interest rate cut expectations have risen, the SEC's regulatory policies have been loosened, and market sentiment has shifted from cautious to positive.
First, let's talk about the wallet. The market expects an over 80% probability of an interest rate cut in September. With liquidity easing, funds are starting to flow back and look for high-risk assets. The U.S. July CPI data from August 12 is crucial; if inflation cools down, the rebound could be even stronger.
Next, regarding regulation, the SEC has launched the Project Crypto policy, clearly categorizing tokens and giving a green light to DeFi, reducing resistance for traditional institutions to enter, which is especially beneficial for compliant DeFi protocols. Market sentiment has also changed, with the Fear and Greed Index turning towards greed, large holders taking the lead in increasing their positions, and retail investors following suit, forming a positive cycle of buying more as prices rise. Even institutions are treating crypto as a hedging tool, increasing demand for allocation.
However, there are also two risk points: first, if the CPI data exceeds expectations and rises, the interest rate cut expectations may be discounted, leading to short-term selling pressure; second, the specifics of how the SEC's DeFi exemption mechanism will be applied have not been clarified, and there could be unexpected issues during implementation.
Personally, I believe this wave is driven by a combination of liquidity, regulation, and sentiment. There may be short-term fluctuations due to data, but the medium to long-term support is solid.
I suggest paying close attention to two types of assets: first, DeFi protocols that the SEC has clearly exempted; second, BTC and ETH favored by institutions. Don’t chase high prices, but you can pick up bargains during corrections, especially after interest rate cuts are confirmed, as the market may enter a phase of rising prices.
If you’re always unsure, you can follow Sister Rong's steps. The winning streak of the team continues. For those wanting to follow Shen Dan's strategy and learn the methods, Sister Rong is here waiting for you.
