⭐The Bull vs Bear Battle intensifies, pay attention to Risk Management
Recently, although there are signs of a warming sentiment in the cryptocurrency market, potential risks are lurking beneath the surface. The current market liquidity mainly comes from spot ETFs, and the liquidity of ETFs largely belongs to the short-term arbitrage behaviors of hedge fund companies, which is insufficient to support a sustained strengthening of the market. Currently, the structural contradictions in the cryptocurrency market are sharp, leading to severe fluctuations in prices during low trading volume periods. At the same time, any unexpected news at the macroeconomic level could trigger market shocks at any time. It is worth noting that mainstream cryptocurrencies are still deeply mired in a downward structural cycle, with Ethereum (ETH) being particularly severe, almost forming a bearish pattern that is difficult to reverse in the short term. This trend stands in stark contrast to the signs of recovery, suggesting that there are numerous internal contradictions in the market. In the current cryptocurrency market, short-term price movements are highly dependent on event-driven factors, with Trump's statements becoming a key variable that influences the market. Due to the uncertainty of his remarks, once they involve economic policy or the cryptocurrency sector, the market tends to experience severe fluctuations. This situation greatly disrupts the analytical logic of traditional cyclical on-chain indicators, making market trends more elusive and presenting unprecedented challenges for investors' decision-making.
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⭐The Bull vs Bear Battle intensifies, pay attention to Risk Management
Recently, although there are signs of a warming sentiment in the cryptocurrency market, potential risks are lurking beneath the surface. The current market liquidity mainly comes from spot ETFs, and the liquidity of ETFs largely belongs to the short-term arbitrage behaviors of hedge fund companies, which is insufficient to support a sustained strengthening of the market. Currently, the structural contradictions in the cryptocurrency market are sharp, leading to severe fluctuations in prices during low trading volume periods. At the same time, any unexpected news at the macroeconomic level could trigger market shocks at any time.
It is worth noting that mainstream cryptocurrencies are still deeply mired in a downward structural cycle, with Ethereum (ETH) being particularly severe, almost forming a bearish pattern that is difficult to reverse in the short term. This trend stands in stark contrast to the signs of recovery, suggesting that there are numerous internal contradictions in the market.
In the current cryptocurrency market, short-term price movements are highly dependent on event-driven factors, with Trump's statements becoming a key variable that influences the market. Due to the uncertainty of his remarks, once they involve economic policy or the cryptocurrency sector, the market tends to experience severe fluctuations. This situation greatly disrupts the analytical logic of traditional cyclical on-chain indicators, making market trends more elusive and presenting unprecedented challenges for investors' decision-making.