In the first half of 2023, the cryptocurrency market entered the 'post-bull market' stage, exhibiting characteristics of high-level fluctuations and structural differentiation. After being suppressed by factors such as the macro environment, trade frictions, and cryptocurrency regulatory policies, a series of rebound signals have recently emerged. The following is a specific analysis:
Current Rebound Status
Recently, the total market capitalization of cryptocurrencies has significantly rebounded, with Bitcoin's price recovering from a low point, leading to an overall market recovery. For example, around April 20, Bitcoin's price rebounded from its previous low to around $57,000, and its market capitalization rose accordingly. Meanwhile, mainstream cryptocurrencies like Ethereum also showed varying degrees of price recovery, and some new narrative sectors such as AI chains, restaking, and meme coin ecosystems performed actively, attracting market funds.
Reasons for the Rebound
- Improvement in Macroeconomic Expectations: Global inflation is gradually easing, central banks in many Eurasian countries are contemplating interest rate cuts, and expectations for a shift in the Federal Reserve's stance are rising. The low-interest-rate environment reduces the return on traditional financial assets, driving funds towards cryptocurrencies and other risk assets.
- Development of the Industry Itself: Decentralized finance (DeFi) technology is continuously maturing, with progress in Layer 2 solutions, cross-chain interoperability, and privacy protection technologies. These advancements are expanding application scenarios in decentralized lending, derivatives trading, and other areas, attracting institutional participation.
- Institutional Investors Entering the Market: From Bitcoin ETFs to ETH futures, institutional funds are gradually increasing their holdings in cryptocurrencies. More traditional financial institutions are participating in investment and custody, and large enterprises also recognize the strategic significance of cryptocurrencies in diversified asset allocation, bringing funds and a robust risk management mechanism to the market.
Future Trends
