### Economic data and macro environment
- **US Jobs Data**: January job growth data fell short of market expectations, which may cause investors to question the speed and stability of the economic recovery. The cryptocurrency market is very sensitive to such macroeconomic indicators because they affect expectations for monetary policy (such as interest rates), and interest rate changes affect investors' appetite for riskier assets (such as cryptocurrencies).
### Policy and Regulatory Developments
- **Trump policy impact**: Although Trump is nothing new in 2025, his latest policy proposals, especially on tariffs and trade, continue to affect global market sentiment. The cryptocurrency market usually shows higher volatility to such policy uncertainty, as these policies may affect global capital flows and investors' risk appetite.
### Market Dynamics of Bitcoin and Other Mainstream Cryptocurrencies
- **Bitcoin Price Fluctuations**: Bitcoin recently broke through the $100,000 mark but subsequently experienced a pullback. This is not only a result of market sentiment and technical analysis but may also relate to investors taking profits or differing expectations for the future direction of the market.
- **Ethereum Network Upgrades**: Ethereum's network upgrades (such as the further implementation of EIP-1559 or the upcoming upgrades) may affect its price and market sentiment. These upgrades are typically aimed at improving network performance but may also introduce short-term market uncertainty.
### Liquidity and Market Sentiment
- **Supply of Stablecoins**: An increase in the supply of stablecoins like USDC and USDT may reflect that funds in the market are waiting for clearer investment opportunities or taking a conservative wait-and-see approach. This could indicate a search for safety during periods of high market volatility.
- **Market Sentiment**: From posts on X, market sentiment has shifted from extreme excitement to a more cautious approach, and this change in sentiment directly impacts price movements. Particularly for mainstream cryptocurrencies like Bitcoin, any shift in market sentiment can lead to significant price fluctuations.
### Global Market Sentiment
- **Impact of Other Asset Classes**: The cryptocurrency market does not exist in isolation; it is closely linked to traditional asset markets such as stocks and bonds. Changes in overall market risk appetite, stock market performance, and expectations for the bond market can indirectly affect cryptocurrency prices.
