Niu Ge Market Express
Christmas Holiday Market Shutdown Approaches, Crypto Market Welcomes Independent Moment
At 15:56, major global trading markets collectively entered a silent period due to the Christmas holiday. The Hong Kong stock market has closed for the afternoon and will remain closed for the next two days. The U.S. stock market will close early at 2 AM, and markets in many European countries have also closed or ended trading early. The pendulum of traditional finance has temporarily come to a halt.
Niu Ge interprets what this means for the crypto market.
First, the liquidity environment will change. When major markets like stocks and futures close, global speculative funds and hedging demands do not disappear. Some keenly perceptive funds may turn to the 7x24 hour cryptocurrency market, which never closes, in search of opportunities. This could bring additional liquidity injection to the crypto market in the short term, especially for more volatile currencies.
Second, market fluctuations may be amplified. With the absence of traditional market stabilizers, the crypto market will be more significantly affected by its internal emotions and fund games. A lower overall trading volume may mean that the same amount of funds can drive larger price fluctuations. Volatility may unexpectedly rise during thin trading.
Third, this is a window to observe the intrinsic strength and weakness of the market. Excluding the interference from daytime fluctuations in traditional markets, the price trends of Bitcoin and Ethereum can better reflect the intrinsic buying and selling power comparison. Whether they strengthen independently or follow the trend for a downturn, the performance during this period holds significant reference value.
In terms of operations, it is advisable to adopt a relatively cautious strategy.
During periods when liquidity may undergo structural changes, aggressive heavy positions are not recommended. It is worthwhile to closely monitor the independent trends of the market from tonight until early tomorrow morning during the traditional fund vacuum period, as this may provide clues for judging the main direction post-holiday.
Remember, when others are resting, staying awake and observing is an advantage.
