Why did favorable news frequently emerge at the end of 2024, but the coin prices did not rise?
Do you remember the end of 2024? Various favorable news was all over the place, with talks of strategic reserves, and so on—ETF funds were still flowing, the halving narrative was still being discussed, and institutional calls never stopped—but the prices just wouldn't cooperate, consolidating or even retracing.
Why? Firstly, the prices are very high, and secondly, the consensus on the purchasing power of funds has collapsed.
External: Macroeconomic expectations have turned sour. The market originally bet on the Federal Reserve unleashing liquidity, but inflation has reignited, the pace of interest rate cuts has been disrupted, and the dollar index is not that weak; the frenzy for risk assets has been doused with cold water. Internal: The marginal effect of ETFs is diminishing. Early-stage capital entry was substantial, but later on, the inflow of new funds slowed, and the FOMO sentiment of retail and institutional investors has also been exhausted. The cryptocurrency circle's old routine of “good news leads to bad news” has played out once again.
In summary: The sentiment of favorable news has been overly consumed.
