Looking back at the events related to the cryptocurrency market last week, there have been quite a few. Now, employment data is declining, but inflation has not come down. In the context of high inflation and an economic recession, stagflation is very likely to occur. As a result, both the US stock market and the cryptocurrency market have seen sharp declines, with heightened risk-averse sentiment. Although the CME's expectation for a Fed rate cut in September surged from less than 40% to over 80%, the financial market still struggles to change its downward trend.
From the perspective of BTC and ETH, the weekly candlestick chart shows that the upward momentum has not been fully released, indicating a high probability of reaching new highs in the future. However, analyzing the flow of funds, Ethereum is clearly more favored by investors. For investors, buying on dips and selling on highs to lower holding costs may be a wiser strategy at this moment; holding onto positions stubbornly can sometimes be disadvantageous.
