Recently, U.S. stocks have risen for five consecutive days, continuously hitting new highs.
But the crypto market has reacted coldly, with Bitcoin and Ethereum even experiencing small declines. Why hasn't crypto followed the rise of US stocks?
Money is flowing in, but prices are stagnant?
The data shows that a lot of money is flowing in through ETFs:
Bitcoin ETF: There has been a net inflow every day for the past 20 days, with a maximum of 500 million in one day and at least 200-300 million.
Ethereum ETF: There has also been a net inflow in the past 30 days, peaking with 200 million in one day.
Money is coming in, which should be a positive sign, but prices just won't move, what's going on?
The market is too quiet!
Just look at the trading data and you'll understand: The trading volume of major exchanges is declining!
Especially in spot trading, the activity level has approached the low valley period of 'no one talking in the group' like last July-August.
The market is very 'quiet' now, with fewer participants.
Bitcoin is stable, altcoins are suffering.
The price of Bitcoin can hold up mainly because of the support from ETF funds. But other 'altcoins' do not have this support and are generally dropping significantly. When money is tight, they feel the most pressure.
The next two months may not be easy.
The latest statement from Federal Reserve officials: There may only be one rate cut this year, expected to be after September.
This means that the upcoming market may still be sideways.
What to do?
Remember: Opportunities often arise when no one is optimistic. But the market has not yet reached 'extreme fear' (the fear index is still at 50). If you are optimistic about the long-term opportunities brought by rate cuts in 2025-2026, Bitcoin might be the safer choice. What is needed now is patience, to wait for the market activity to pick up.
