Report on May 29, 2025
Yesterday, after the U.S. stock market opened, there was a slight correction, and Bitcoin followed suit with a slight drop.
Currently, there are no obvious negative news in the market, but rather some positive news is brewing.
The U.S. Department of Labor recently canceled its 2022 guidance that prohibited 401(k) retirement accounts from investing in cryptocurrency assets, which means the regulatory attitude has shifted from indirect suppression to neutrality.
The previous guidance warned employers not to allow employees to use retirement funds to buy cryptocurrencies, citing high volatility, difficult valuation, and high risks.
Now that this restriction has been lifted, it effectively gives institutions like BlackRock and Fidelity the green light to push for Bitcoin to be included in retirement accounts.
With the Republican government's relatively loose stance on financial regulation, the market sees this as a long-term positive.
Simply put, the political barrier to using retirement funds to buy Bitcoin and other cryptocurrencies is basically gone.
This can be considered one of the benefits brought by the Trump administration to the cryptocurrency industry; although it didn't immediately push Bitcoin prices higher, it will definitely help attract more funds into the market, which is a long-term positive.
Additionally, U.S. Vice President Vance stated at the BTC Consensus Conference that Bitcoin is a strategically important asset for the U.S. and does not believe it poses a threat to the dollar.
The CEO of Bitwise also mentioned at the Bitcoin 2025 conference that if wealth management institutions allocate 1% of their funds to Bitcoin, it could lead to inflows of hundreds of billions of dollars.
Currently, Bitcoin spot ETFs have a total inflow of $44.85 billion, and if there really are hundreds of billions of dollars entering the market, Bitcoin is likely to break through $200,000.
From the Bitcoin turnover rate, it seems that short-term investors are sensitive to price fluctuations, increasing their selling pressure, especially those who are losing money are selling even more.
However, early long-term investors who have accumulated coins are still observing, with no sign of panic; the fear and greed index remains around 65.
From the spot ETF data, Bitcoin ETFs have inflows of $385 million, and Ethereum ETFs have inflows of $38.8 million, indicating that U.S. investors remain optimistic about the market outlook.
From a support level perspective, the support range between $93,000 and $98,000 remains very solid, with 2.33 million Bitcoins accumulated in this range.
The chips in the $100,500 to $105,000 range are also relatively stable, with current selling pressure coming from short-term players, while long-term investors are observing.
In terms of capital flow, on the previous day, market funds decreased by $100 million, with a total of $249.5 billion currently.
USDT market cap is $152.913 billion, an increase of $158 million compared to yesterday, with a slight increase in trading volume of 5%, indicating good capital inflow and trading enthusiasm in the Asia-Europe market.
USDC market cap decreased by $149 million, with trading volume plummeting by 58%, indicating that U.S. investors were not very active yesterday.
So overall, the cryptocurrency market environment is improving, and there are no negative factors in the macro market; this drop in Bitcoin is just an adjustment following the U.S. stock market.
In contrast, Ethereum has risen against the trend, with prices peaking at $2,788.
The exchange rate of ETH to BTC has also continued to strengthen, showing a potential breakout trend, so the performance of leading altcoin Ethereum deserves special attention.
Currently, everyone is taking a wait-and-see approach, and the market is waiting for a new catalyst.