The current market has either bottomed out or is in a stable bottoming process.
The wave of selling by institutions and investors has ended, and the selling pressure in the market has exhausted; it is hard to see the market breaking below previous lows.
So what will happen next?
- The pressure from tariffs will ease, and the Trump administration is expected to introduce some form of tariff reduction before July.
- The Federal Reserve will lean towards a dovish stance, using interest rate cuts to counteract the drag from tariffs. Even if there are no rate cuts this quarter, we expect to see some form of non-quantitative easing-style quantitative tightening driven by the Treasury to combat tariffs.
- Assets sensitive to liquidity will outperform the market, with Bitcoin currently being the most sensitive mainstream asset.
- For most companies, profit growth will face challenges, but they will benefit from the clarification of trade policies and deregulation.
- Bitcoin's dominance has not yet peaked $BTC