The cryptocurrency market welcomes a rebound, with multiple positive factors resonating to boost the market
Recently, the cryptocurrency market has ended the consolidation phase and begun a significant rebound, with Bitcoin (BTC) leading the charge, followed closely by major coins such as Ethereum (ETH) and BNB. This round of increase is driven by macro policies, advanced economic data, and industry dynamics.
On the macro level, the shift in the Federal Reserve's policy expectations has become the core driving force. Several officials, including Powell, have recently spoken out, emphasizing that policy depends on data, but the tone has become more moderate, acknowledging that inflationary pressures are easing and suggesting that current interest rates may have peaked. The market is highly focused on the upcoming PCE data (the Fed's core inflation indicator), with general expectations that it will confirm the decline in inflation. If the data meets expectations, the logic for an early rate cut by the Fed will strengthen, injecting liquidity into the cryptocurrency market and prompting investors to position themselves in advance to boost the market.
Within the industry, the actions of giants further enhance confidence. Michael Saylor, Executive Chairman of MicroStrategy, has clearly indicated that the company will continue to increase its Bitcoin holdings. As the publicly traded company with the largest Bitcoin holdings globally, its accumulation actions have always been a strong endorsement of Bitcoin's value, not only solidifying the confidence of existing holders but also attracting attention from outside funds.
Technical and emotional factors also support the rebound. Bitcoin has broken through short-term resistance after stabilizing at key support levels, triggering short-covering and trend buying. The Fear and Greed Index shows that market sentiment has shifted from 'fear' to 'greed,' significantly increasing trading activity.
Looking ahead, prior to the release of the PCE data, market optimism may continue, but risks must be heeded. If inflation data exceeds expectations stubbornly, it could reverse dovish expectations and trigger market fluctuations. This rebound highlights the deepening connection between the cryptocurrency market and traditional macroeconomics, with Bitcoin's 'digital gold' narrative becoming more solid under institutional involvement. Investors need to closely monitor macro data and policy trends and exercise caution in capturing market movements.
