The US stock market is closed for the weekend, and without a reference from the US market, the main players are also on holiday, leading to a state of disorderly fluctuations in the crypto space;
Recently, the market in the crypto space has indeed been unpredictable, primarily due to three inconsistencies:
1. The expectations for the rise in the crypto space are inconsistent with those of the US stock market. The crypto market is bullish, with Ethereum and altcoins still having upward expectations, but the US stock market has been reaching new highs for twenty years, and after each new high, there is always a period of panic. It’s uncertain when a major correction might occur, especially since Trump is adept at manipulating with words and data. When the crypto market rises a bit, the US stock market suddenly strikes down!
2. The upward expectations for $BTC and $ETH are inconsistent: Bitcoin entered a period of capital outflow and fatigue after breaking the previous high at 714, and the narrative and funds have shifted towards Ethereum. However, once Ethereum surges for a while, funds FOMO (fear of missing out) more, which accelerates the outflow of capital from Bitcoin. Therefore, every time Ethereum and altcoins rise, they get hit by the decline of Bitcoin!
3. After both $BTC and $ETH hit new highs, the large funds that built positions at low levels have already gained enough profit, and there will always be a group of profit-takers (including major funds). Thus, the market will enter a point of divergence between bulls and bears, but the expectation for interest rate cuts can still continue in a bull market. Therefore, after each violent surge, it will enter a period of wide-range fluctuations, until liquidity is released and interest rates are cut, bringing in a frenzy of new funds, which will then reach a peak;
Looking back at historical bull markets, they have all followed this path. Therefore, the overall tone is still to hold on to the arrival of the bull market frenzy, and the wide-ranging fluctuating market has probably gone through half of its course. In the short term, after a surge last night, Ethereum once again reached a historic high, but it may need to consolidate further to fully stand on the new high. Expect small fluctuations over the weekend and watch the US market open on Monday evening;
However, considering that Trump’s family has launched $wlfi at 91, it is highly likely that there will be fluctuations for a few days before another surge to create momentum for $wlfi!
