After the insane surge in the cryptocurrency market last Friday, it continued to decline throughout the weekend until stabilizing yesterday afternoon. However, BTC still hasn't returned to the $110,000 mark, which is concerning, while ETH barely returned to $4,500. Although the decline has stopped, the situation is still not very optimistic. Bitcoin currently faces a relatively poor situation, but the spot ETF has finally stopped the decline and started to recover, shifting from a net outflow for six consecutive days to a net inflow, while Ethereum is performing relatively strong, recording three consecutive days of net inflow this week.
Recently, the strong performance of ETH is mainly attributed to Wall Street financial expert Tom Lee, who has been consistently bullish and actively using his publicly listed company BitMine as a reserve for ETH, buying ETH almost every week like a strategy. Last week, he made two predictions about ETH's movement, both of which came true, including a mid-week dip and a recovery on Friday. Yesterday, he predicted that ETH would bottom out within a few hours, and indeed ETH has started to recover, with hints suggesting it could rise to the $5,400 level. Whether he will be right again this time remains to be seen.
Regarding the U.S. market, it is expected that we will have to wait for the unemployment numbers and preliminary GDP data to be released tomorrow before the market can regain some volatility. At the same time, attention should be paid to whether the firing of Fed board member Lisa Cook by Trump will continue to escalate, as challenges to the Fed's independence could impact investor confidence in the U.S. financial system. If everything is dictated by Trump, with his unpredictable personality, there is a chance that people will retreat from the U.S. market. Moreover, the cryptocurrency market is likely to follow the downward trend of the U.S. stock market in the short term, so vigilance is required regarding this matter.
