The China-US trade agreement boosts the market, and cryptocurrencies experience a widespread surge
Driven by positive macroeconomic news, the cryptocurrency market has seen a significant rebound. The US and China have reached a consensus on a framework trade agreement, coupled with rising expectations for an interest rate cut by the Federal Reserve, which has collectively enhanced global market risk appetite, leading to a significant inflow of funds into crypto assets.
Market Conditions
Mainstream currencies have risen sharply: Bitcoin (BTC) price has increased by about 2.8%, breaking through the $115,000 mark, quoted at approximately $114,931. Ethereum (ETH) has shown even stronger performance, rising about 5.7% within 24 hours, with prices recovering above $4,173.
Trading volume and liquidation: Market trading is active, with BTC's 24-hour trading volume reaching $43.1 billion. The rapid rebound in the market has led to up to $358 million in short positions being forcibly liquidated within 24 hours in the derivatives market.
Market dominance: BTC's market capitalization has returned to $2.29 trillion, maintaining a market dominance of over 59%, still serving as a market barometer.
Core Drivers and Technical Analysis
Macroeconomic driving factors: The easing of China-US trade relations and expectations for interest rate cuts by the Federal Reserve are the core driving forces, prompting funds to shift towards risk assets. Data shows that the funds flowing into cryptocurrency investment products reached $34 million last week, indicating a return of institutional capital.
On-chain signals are positive: The number of Bitcoins held on exchanges has dropped to a new low since 2021, which is typically interpreted as investors leaning towards long-term holding, alleviating potential selling pressure in the market.
Technical outlook: BTC has successfully stabilized at the $110,000 support level, with short-term resistance to be watched around $126,000. ETH has broken through the short-term resistance of $4,115, with the next target looking towards the range of $4,300 to $4,550.
Risk Warning
Macroeconomic dependence: This round of rebound is highly dependent on macro news. If the subsequent progress of the China-US trade agreement falls short of expectations, or if the Federal Reserve signals hawkishness, the market may face the risk of a correction.
Regulatory uncertainty: The cryptocurrency market still faces ongoing regulatory scrutiny. Future policy directions from agencies such as the US SEC and CFTC remain potential risk factors that the market needs to be vigilant about.
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