The weekend's gains have completely evaporated, has Bitcoin shifted to a long-term bearish trend?

Recent market trends show that although Trump's statements regarding cryptocurrency reserves briefly halted the downward momentum, underlying macroeconomic issues remain. Over the past few days, Bitcoin's price has exhibited extreme volatility. Essentially, Trump's statement may have only superficially addressed a very serious problem. Last week, the cryptocurrency fear and greed index fell to its lowest level since 2022, and there are several reasons for Bitcoin's current bearish sentiment:

Firstly, the macroeconomic situation does not present a bullish factor for cryptocurrencies. The Atlanta Fed's GDPNow model now predicts that by the end of the first quarter of 2025, the U.S. GDP will contract by 2.8%. From an economic perspective, this prediction is catastrophic compared to the 3.9% growth forecast made four weeks ago. Another important factor is the tariff policy proposed by Trump. While some analysts believe that tariffs are not the main cause, a significant drop in the cryptocurrency market occurred when Trump recently announced a 25% tariff on the European Union. In other words, macroeconomic factors largely influence market sentiment in the cryptocurrency industry. Since the approval of the spot Bitcoin ETF, cryptocurrencies have deeply integrated with traditional finance. Therefore, if the U.S. economy falls into recession, the downsides of this integration will become fully apparent.

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