After the release of the U.S. April CPI data on May 13, the actual values were lower than market expectations, significantly strengthening market expectations for the Federal Reserve to cut interest rates within the year.
With the slowdown of the Federal Reserve's quantitative tightening (QT) process, the inflow of fiscal funds during the tax season, and the continuous outflow of money market fund assets from reverse repurchase agreements (RRP), macro liquidity has shown a phase of easing, leading to a significant inflow of funds into the crypto market, driving a strong rebound in mainstream crypto assets such as BTC, ETH, and SOL.
From the market structure perspective, the participation of institutional investors continues to rise.
Bitcoin futures open interest (OI) remains high, currently accounting for 3.4% of the total circulating supply, indicating strong willingness of institutional funds to hold positions.
At the same time, the activity in the ETH and SOL derivatives markets has also rebounded, significantly improving liquidity.
It is worth noting that analyst Chloe pointed out that current short-term holders of BTC and ETH are generally in a high-profit state, and the leverage positions in the derivatives market are highly concentrated.
Once prices touch key technical support or resistance levels, it may trigger a massive profit-taking and forced liquidation chain reaction, exacerbating short-term volatility risks in the market.
