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Trends and core narratives in the next phase of the crypto market after the soft landing

Over the past week or so, traditional financial markets have seen some positive signs against the backdrop of easing inflationary pressures in the U.S., while cryptocurrency markets have “followed” for a phased recovery.

July US CPI data of 8.5% was lower than market expectations.

While the previous value, released a month ago, hit a record high of 9.6%, most market participants were surprised by the violent rebound in financial markets after such a poor data release, but in fact it was because the market The forward-looking pricing for “the data will not be worse”, and from the results, this judgment that seems to deviate from the current data is accurate. However, as to whether the CPI can usher in an inflection point, we can only continue to observe.

From a purely “wealth-destroying” perspective, this year’s bear market has been more intense than any other cycle in the history of cryptocurrencies. Luna’s thunderstorm in May directly wiped $60 billion of the total market capitalization from the cryptocurrency market, which in turn caused a series of chain reactions throughout the ecosystem. The rapid plunge in the prices of Bitcoin and Ethereum caused the hedge fund Three Arrows Capital to encounter a crisis. In June, the total market value of the encrypted market fell by $10 billion again. Many large-scale CeFi institutions in the encrypted field went bankrupt, and the market experienced a round of violent storms. Rain of deleveraging.

On the bright side, it’s almost impossible to see such a massive sell-off in the short term, and the bottoms formed after such events tend to be strong future support. This article is not a trading guide, but a high probability result of the market’s next move through clues in the market.

Macro Financial Markets and BTC500

The correlation between cryptocurrencies and traditional financial markets has reached an unprecedented level for most of the year. While traditional financial markets continue to be under pressure against the backdrop of Fed tightening and inflationary…

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