Key factors affecting the cryptocurrency market
1. Recession concerns: Despite recession concerns, Davis believes that these concerns may be premature. Strong employment, low bankruptcy rates and increased rail traffic indicate a healthy economy.
2. Expectations of interest rate cuts: The market expects interest rates to be lowered soon, possibly in September, which may increase market liquidity and affect risky assets such as cryptocurrencies.
3. Stable Japanese market: The Bank of Japan's decision to maintain existing interest rates has eased market volatility and contributed to global financial stability.
4. Stable situation in the Middle East: The recent stability in the Middle East has reduced the risk of oil supply disruptions and inflation.
5. Bitcoin ETF surge: Bitcoin ETF daily purchases exceed new Bitcoin production, with net inflows reaching $284 million yesterday.
6. FTX asset return: FTX plans to return $12.7 billion, which may bring a lot of liquidity to the market, boosting sentiment and prices.
7. Pi Cycle indicator: The Pi Cycle indicator, which has historically accurately predicted Bitcoin price peaks, shows that the market has not yet peaked and may continue to rise in the future.
8. Increased global liquidity: Increased money supply and central bank actions have boosted global liquidity, driving up prices of cryptocurrencies and other assets.
9. Impact of the US election: The upcoming election may bring policies that support cryptocurrencies. Trump said that if elected, he plans to promote the United States as a center for cryptocurrencies.
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