The market encountered a small wave and is undergoing a brief consolidation.
Trump continues to stir things up without rest. U.S. Treasury Secretary Bessent (see image one 😆) expressed confidence in the U.S. economic growth outlook during an interview last weekend, while also addressing several topics of great concern to investors, such as controlling fiscal spending, weakness in U.S. debt and the dollar, the privatization of Fannie Mae & Freddie Mac, and the bank deregulation actions mentioned last week. He repeatedly emphasized that the three pillars of Trump's new policies—tariffs, tax reform, and deregulation—are solutions to rebalance the worsening U.S. debt/GDP situation. If debt continues to grow, then let GDP grow faster.
Bessent is a true hero; every time he speaks, he saves the market. In the interview, he also expressed reservations about the privatization of FF. Since late April, Jumbo excess mortgage rates have significantly rebounded, exceeding FHA federal insurance loans, which is unfavorable for real estate and macroeconomic development. Currently, Conforming traditional mortgage rates are nearing 7% (as shown in image two), having reclaimed most of the losses since Trump took office. Privatizing FF would set the lower limit for mortgage rates at a previous level, which is not a good direction.
The latest report from U.S. Bank shows that in April, most investors underweighted the U.S. market (followed by energy), while overweighting healthcare and cash (see image three). If market sentiment recovers or the wind changes, these underweight sectors will have significant performance opportunities. The report in image four also mentions that being long on gold is currently the most crowded trade (many retail investors 🌱), while the proportion of being long on the seven tech giants has significantly decreased, and being bullish on U.S. debt has also increased (caught off guard)... One can only say that investment should never follow the crowd. Remember in 2023 when many bond investments were recommended, and a certain KOL advised fans to buy U.S. mortgage bonds and borrow money to buy coins.
The market is currently in a liquidity headwind period. Besides this week's FOMC meeting, several major data releases are coming up. Remember not to chase high prices at this stage; it's more suitable to wait for pullback opportunities to position yourself. The market remains dominated by narratives and sentiment. Recently, there have been many topics.#Hyperliquid Will it continue to hit new highs? Or will there be a brief pullback? What do you think?! I'm curious to observe the YTD performance of HL trading volume and see its relationship with$BTC price trends (see image five). This year, each time HL trading volume has unusually surged, BTC happened to be at high market levels... It's worth continued attention!
————————————————————
Like and share, much appreciated! 😛
#Market_Update #altcoins
