The market saw a rebound yesterday, but today it is starting to show signs of a pullback.
Market news:
Government selling actions: Both the U.S. and German governments have sold cryptocurrencies, and the market has been sensitive to this. Binance Trends: Binance added more than 5,000 BTC yesterday, while the liquidity of stablecoins across the market remained stable without significant growth. The psychology of government selling: Similar to many ordinary investors, the government did not sell in large quantities when prices rose. When the price fell back to about US$60,000, it began to worry about further declines and chose to sell.
liquidity:
ETFs have shown net inflows for two consecutive days, but the amount of funds is relatively small, 30 million the day before yesterday and 20 million yesterday.
Future outlook:
Mentougou incident: The market is paying close attention to Mentougou’s solution in early July, which will affect market sentiment and trends. PCE price index: The PCE price index will be announced at 8:30 tomorrow night, with market expectations of 2.6%. If the data is lower than expected, it will be positive for the market; otherwise, it may have a negative impact. Market consensus is that the price of Bitcoin could fall below $60,000 before the data is released. Federal Reserve policy: If inflation data declines, expectations for a rate cut by the Federal Reserve will increase, which will be a long-term positive for the market.
Strategic suggestions:
Under the current environment, it is recommended that investors remain patient, hold some currencies in cash, and wait for further market corrections to buy dips. The market is always full of fluctuations, but things must reverse when the market reaches its peak. When the market is at a low point, good things happen, and the rebound is often stronger.
