The most uncomfortable thing this time is probably not the US stock market
but risk assets like Bitcoin
The US dollar is strengthening
US Treasury yields are rising
Liquidity expectations are starting to tighten again
It's indeed not that easy for Bitcoin to rise
There is a very awkward situation in the market right now
US employment data exceeded expectations
indicating the economy still has some resilience for the time being
but inflation hasn't completely come down
which makes it hard for the Federal Reserve to ease up
The longer interest rates stay high
the more attractive US dollar assets become
Capital will naturally re-evaluate returns and risks
Buying US Treasuries offers relatively stable returns
So why rush to buy such a volatile asset like Bitcoin?
This is also why
once macro expectations turn hawkish
Bitcoin often comes under pressure
But this shouldn't be simply understood as
when the dollar rises, Bitcoin must fall
What really affects the market
are capital flows and market expectations
$BTC$ETH$ZEC
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