Why did $BTC $ETH rise so much yesterday?
1. Waller's dovish remarks from the Federal Reserve, the trigger for the move
Waller said: as long as inflation continues to ease, he supports pausing rate hikes in September.
CME data showed the probability of a 25bp rate hike in September dropped directly from 63% to 50%.
The 10-year U.S. Treasury yield fell from 4.81% to 4.75%, and the U.S. dollar index broke below 99.
As soon as expectations of easier liquidity emerged, U.S. tech stocks with high valuations and high volatility, as well as cryptocurrencies, rose in sync.
2. Initial jobless claims data weakened more than expected, adding fuel to the fire
U.S. initial jobless claims last week were higher than expected, indicating that the labor market is beginning to cool. The Federal Reserve had no need to force another rate hike, further strengthening the market consensus that "rates have peaked."
U.S. stocks opened strongly and kept rising, with the Nasdaq up as much as 1.4%. Crypto-related stocks such as Coinbase and Strategy surged more than 10% intraday, and sentiment quickly spread to the crypto market.
#美国续请失业金人数降至177.9万
3. Leveraged short squeeze accelerated the rally
In the past few days, the market had been under continuous pressure, and a large number of short positions had accumulated. As prices broke through key resistance levels to the upside, short positions were forced to stop out one after another and were liquidated, with passive buying creating a chain reaction of gains. This is what is commonly called a "short squeeze," which pushed the rally to a new level.
4. Capital rotation toward high-beta assets
After interest-rate pressure eased, funds first bought U.S. AI and tech leaders, then spread outward into cryptocurrencies. Bitcoin broke above 81,000, Ethereum rose in sync, and the market's profit effect attracted retail money back in, creating a positive feedback loop.
5. The U.S. Congress should pass the CLARITY Act to improve regulation
At a hearing of the U.S. House Financial Services Committee, Circle president and former CFTC Chairman Heath Tarbert said that the GENIUS Act has already established a federal regulatory framework for payment stablecoins. The next step for Congress should be to pass the CLARITY Act to complete the long-term regulatory framework for the digital asset market. He also called for the GENIUS Act implementing rules to close offshore stablecoin regulatory arbitrage loopholes, restrict intermediaries serving U.S. customers, and ensure foreign stablecoin issuers meet comparable regulatory standards.
Overall, yesterday's upward trend was not particularly fast, and there were pauses at key resistance levels from time to time, giving short sellers plenty of opportunity to cut losses and reverse to long positions. If you were still being squeezed out or liquidated, it shows that you were taking chances and were not rational enough.
1. Waller's dovish remarks from the Federal Reserve, the trigger for the move
Waller said: as long as inflation continues to ease, he supports pausing rate hikes in September.
CME data showed the probability of a 25bp rate hike in September dropped directly from 63% to 50%.
The 10-year U.S. Treasury yield fell from 4.81% to 4.75%, and the U.S. dollar index broke below 99.
As soon as expectations of easier liquidity emerged, U.S. tech stocks with high valuations and high volatility, as well as cryptocurrencies, rose in sync.
2. Initial jobless claims data weakened more than expected, adding fuel to the fire
U.S. initial jobless claims last week were higher than expected, indicating that the labor market is beginning to cool. The Federal Reserve had no need to force another rate hike, further strengthening the market consensus that "rates have peaked."
U.S. stocks opened strongly and kept rising, with the Nasdaq up as much as 1.4%. Crypto-related stocks such as Coinbase and Strategy surged more than 10% intraday, and sentiment quickly spread to the crypto market.
#美国续请失业金人数降至177.9万
3. Leveraged short squeeze accelerated the rally
In the past few days, the market had been under continuous pressure, and a large number of short positions had accumulated. As prices broke through key resistance levels to the upside, short positions were forced to stop out one after another and were liquidated, with passive buying creating a chain reaction of gains. This is what is commonly called a "short squeeze," which pushed the rally to a new level.
4. Capital rotation toward high-beta assets
After interest-rate pressure eased, funds first bought U.S. AI and tech leaders, then spread outward into cryptocurrencies. Bitcoin broke above 81,000, Ethereum rose in sync, and the market's profit effect attracted retail money back in, creating a positive feedback loop.
5. The U.S. Congress should pass the CLARITY Act to improve regulation
At a hearing of the U.S. House Financial Services Committee, Circle president and former CFTC Chairman Heath Tarbert said that the GENIUS Act has already established a federal regulatory framework for payment stablecoins. The next step for Congress should be to pass the CLARITY Act to complete the long-term regulatory framework for the digital asset market. He also called for the GENIUS Act implementing rules to close offshore stablecoin regulatory arbitrage loopholes, restrict intermediaries serving U.S. customers, and ensure foreign stablecoin issuers meet comparable regulatory standards.
Overall, yesterday's upward trend was not particularly fast, and there were pauses at key resistance levels from time to time, giving short sellers plenty of opportunity to cut losses and reverse to long positions. If you were still being squeezed out or liquidated, it shows that you were taking chances and were not rational enough.
