After Bitcoin broke through $70,000 again and Ethereum approached the $4,000 mark, the market suddenly cooled down. The core problem is the lack of market liquidity. The on-chain transfer volume of Bitcoin on weekdays is only tens of thousands, which is similar to the bear market in early 2023. The gas fees of Bitcoin and Ethereum have dropped to historical lows, and the market's willingness to buy and sell is sluggish.

The hype of Bitcoin ETF has subsided. Wall Street institutions hold about 850,000 BTC. There has been no large-scale net inflow of funds in the past month, and the issuance of stablecoins has also been flat, indicating that the market lacks the willingness to buy on a large scale at this stage.

Although the Ethereum ETF has been approved, the process was hasty and the price has approached $4,000, not far from the previous round of highs. It is expected that the net inflow of funds for the Ethereum ETF will be significantly weaker than that of BTC, and the ETF has not yet been fully opened, so there is limited room for Ethereum to rise sharply.

The big funds waiting to buy are looking forward to the "gold pit", while the big funds waiting to sell are looking forward to the "halving climax", and the decision of the Federal Reserve will be the key. The US election in November this year has attracted much attention. The Federal Reserve is expected to maintain the status quo in June and July, but there will be major changes in monetary policy in September or after the election. It is difficult to predict how the financial market will react.

Faced with $35 trillion in debt, a high interest rate environment and soaring US stocks, the market does have black swan risks. Some funds are looking forward to the "gold pit", and based on the historical performance of Bitcoin after halving, some funds are looking forward to selling after a big rise.

The high debt of the United States may eventually be solved through loose monetary policy, but this move will trigger inflation. In addition to US stocks, the crypto market is seen as a reservoir of funds. Therefore, in the long run, mainstream crypto assets still have long-term allocation value. #5月非农数据即将公布 #美国4月核心PCE指标显示通胀放缓 #MegadropLista $BTC $ETH $PEPE