Especially the current market, it goes up and then down, and it goes up and then down. You have already lost your direction for the future.
Analysis of the reasons for the evening plunge: The low performance of the US employment market data is an important trigger for this plunge.
The market originally generally expected that the Federal Reserve would start a rate cut cycle in the first half of 2025, but the reality is far more complicated than expected.
The job market is very resilient, and the Federal Reserve may have to maintain a high interest rate environment for a longer period of time. In this context, the chain reaction caused by the market adjustment is particularly worthy of attention. Any negative news may trigger a stampede-like decline, causing further market turmoil.
What is more worthy of attention is that on-chain data analysis shows that the leverage ratio of the market is close to the level at the peak of the bull market in 2021.
This high-leverage environment greatly increases the fragility of the market. Once the market fluctuates, investors may withdraw quickly, leading to a sharp drop in prices and the spread of a wave of liquidation.
Most Wall Street traders are pessimistic about interest rate cuts before July, and the sharp drop caused by the crazy bearish data before Trump took office.
However, the decline is not a bad thing. It is the beginning of a new round of layout, as the previous script said.
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