The crypto assets market seems to have entered a relatively calm phase recently, raising questions among many investors. What exactly are the reasons behind this situation? Let's analyze the four main factors behind it.



First, the market sentiment has clearly cooled down. Bitcoin has experienced severe price fluctuations in the short term, from breaking through the $100,000 high to subsequent pullbacks. This volatility has made investors, especially newcomers, more cautious. The market atmosphere has shifted from extreme optimism to a wait-and-see state, leading to a decrease in trading activity and a subsequent reduction in market volatility.

Secondly, the uncertainty of the global regulatory environment is increasing. Countries around the world are actively adjusting their regulations on Crypto Assets, with major economies such as the United States and Europe discussing new laws. This ambiguity in policy makes large investment institutions more cautious, worried about potential losses due to policy changes.

Thirdly, from a technical analysis perspective, the market is in an adjustment phase. The rapid rise of mainstream Crypto Assets in the earlier period requires a digestion period. This phase can be seen as the market's "resting time", preparing for the next possible trend. Although it may seem that volatility has decreased on the surface, in reality, the market is searching for a new direction.

Finally, the flow of funds has changed. Traditional financial markets such as stocks and gold have performed well recently, attracting some investment funds. In contrast, the appeal of the crypto assets market has temporarily declined, resulting in a decrease in incoming funds, which in turn has affected the market's activity.

Despite the current market being relatively calm, this may just be the calm before the storm. Investors should closely monitor market trends and conduct thorough risk assessments and asset allocations to prepare for potential opportunities and challenges that may arise in the future. Additionally, attention should be paid to the potential impacts of policy changes on the market, maintaining vigilance and flexibility.
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ImpermanentPhilosophervip
· 08-19 08:56
Is this adjustment called calm?
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MetaverseHermitvip
· 08-19 06:26
How many suckers are waiting for the storm
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PessimisticLayervip
· 08-18 20:41
The pro is bearish again, right?
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Web3ProductManagervip
· 08-18 20:39
looking at the user journey metrics... this is just a classic consolidation phase before product-market fit 2.0
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LeekCuttervip
· 08-18 20:36
Suckers have finally made a profit after struggling for four years.
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