【January 27th Market News and Data Analysis】

1. Opinion: The US dollar is weakening, and the Federal Reserve's easing should benefit cryptocurrencies, but deleveraging and the continued strength of precious metals suppress the performance of #BTC and #ETH ;

2. #Vitalik : The scalability layers of blockchain can be summarized as computation, data, and state, where computation and data can replace state;

3. Current mainstream CEX and DEX funding rates show a slight easing of market bearish sentiment compared to yesterday;

4. Analysis: #GOLD continues to rise, and stock market valuations are relatively high, which may drive a rebalancing of funds into the cryptocurrency market.

The US dollar has weakened this week, and the yen exchange rate has surged to a two-month high. The market speculates that US and Japanese authorities may act together to support the yen, and this expectation has warmed after remarks from Japanese officials. Meanwhile, ahead of the Federal Reserve's interest rate meeting and potential personnel changes in the US, investors are choosing to reduce dollar exposure, which is also dragging down concerns about a possible government shutdown. The dollar to yen exchange rate has seen significant declines over the past two days, marking the largest drop in nearly a year. Market operations indicate that the New York Fed has asked major traders about exchange rates, which is often seen as a preparatory step for official intervention. Analysts point out that if the willingness of both the US and Japan is clear, the intensity of intervention will be stronger, but its effects are often short-lived under fundamental pressure.

Research interpretation suggests that the weakening of the dollar and potential easing expectations should create a macro favorable environment for cryptocurrencies. However, the current cryptocurrency market has already completed deleveraging within the industry, and the previously strong leverage-boosting effect has not emerged. In the short term, market funds show a clear “risk aversion” or “FOMO” flow, favoring the continuously rising gold and silver, which has diverted funds that might have entered the cryptocurrency field. However, historical cycles show that after a strong phase of precious metals, a rotation of funds often occurs, and core crypto assets like Bitcoin and Ethereum are expected to subsequently capture market attention. The price of Bitcoin has now risen close to $89,000; although the overall market sentiment has slightly eased, a bearish consensus on altcoins still widely exists.