Have you hit your head...

Is cryptocurrency's drop tonight linked to Japan's interest rate hike again?

First, let's talk about the current situation. Federal Reserve Governor Milan believes that interest rates should be lowered more aggressively and has expressed an optimistic attitude towards inflation.

He opposed the Federal Reserve's decision to cut interest rates by 25 basis points last week, preferring a cut of 50 basis points. However, at last week's meeting, Milan's opposing view suggested that rates should not be lowered because inflation has not moved towards the Federal Reserve's goals. Many Federal Reserve officials attribute this to what they believe is related to Trump's tariffs. Isn't this a bit contradictory, and does it not maintain a positive outlook for cryptocurrencies?

What I want to say here is that tonight's real drop is not related to recent data. We can look back at the current market sentiment. Since the Federal Reserve's interest rate cut, there have been continuous signals indicating that the bullish sentiment in the market remains relatively strong after the rate cut, such as (buying the dip for a new rebound) - (Bitcoin/Ethereum inflow data) all provide signals that the market is optimistic, which is essentially what I mentioned last week about the slight bullish yet bearish sentiment!

The market is still under significant bearish signals, with the upper pressure at 95000 not stabilizing. The weekly chart also shows no breakout at the pressure level, which is why both the live stream and static posts have indicated a bearish sentiment in the 94000 region. Before the weekend, the lowest drop was 89500, followed by a rebound.

On Monday, there was sideways consolidation and repair. From a daily structural perspective, it is also in a bearish trend, but it only started to gain momentum during the US trading session. The European session directly entered a bearish trend at 89800. I mentioned two levels before the market opened: 87500-86000, with Ethereum being firmly set at 3160 in sync with Bitcoin's bearish trend. The four-hour level showed that before the US stock market closed, it tested the bottom at 85000, with Ethereum dropping below 2900. Don't be afraid; the market needs time to play out. Only by firmly following the correct trend can we reach the other shore! $BTC $ETH