The rebound time of the cryptocurrency market after a correction is difficult to predict accurately. Here are some factors that may affect its rebound time and related situation analysis:

Macroeconomic Factors

● Monetary Policy: If the expectations for interest rate cuts by major central banks like the Federal Reserve strengthen and are ultimately implemented, it will increase market liquidity, lower funding costs, and attract more capital into the cryptocurrency market, thereby driving the market rebound. For example, on December 11th, the US spot Bitcoin exchange-traded fund experienced inflows for the 10th consecutive day, partly because the US November CPI data showed that inflation was under control, triggering market speculation about the Federal Reserve's interest rate cuts.

● Economic Growth Trends: When global economic growth is strong, investor risk appetite rises, which may increase investment in cryptocurrencies and drive market rebounds. Conversely, during economic recession or sluggish growth, investors may tend to prefer conservative investments, which could delay the rebound of the cryptocurrency market.

Industry Regulation Factors

● Clarity and Improvement of Regulatory Policies: The regulatory policies of regulatory agencies toward the cryptocurrency industry are gradually becoming clearer and more refined. For instance, the US House of Representatives has passed a broad regulatory framework for the cryptocurrency industry, providing clearer rules for the crypto space, which will reduce market uncertainty, help restore market confidence, and promote rebounds.

● Shift in Regulatory Attitudes: The shift in regulatory attitudes toward cryptocurrencies in some countries or regions from strict restrictions to relatively friendly or neutral stances can also positively impact the market.

Market-Specific Factors

● Technological Development and Innovation: Continuous development and innovation in blockchain technology, such as Ethereum's technological upgrades, the launch of new cryptocurrency protocols or applications, may attract more users and capital into the market, driving market rebounds. For example, the launch of Ethereum ETFs could trigger bullish sentiment in the entire altcoin market.

● Market Sentiment and Confidence: The emotions and confidence of market participants have a significant impact on the trends of the cryptocurrency market. If investors generally hold an optimistic view of the market prospects and actively buy cryptocurrencies, the market may rebound more quickly.

● Capital Inflows and Outflows: When institutional investors and large funds flow significant amounts of capital into the cryptocurrency market, it will provide strong purchasing power to the market, driving prices up and promoting market rebounds. For instance, the capital reached $439.5 million in December.

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