Matrixport Market Observation: Nasdaq fell, the yen strengthened and the market risk aversion sentiment is obvious

The crypto market has become flat recently and there is a lack of new market catalysts. Affected by MSTR 's intention to buy more BTC news, BTC returned to the upward channel in the middle of last week and reached a maximum of $99,475 on the evening of the 21st, with a maximum increase of 6.5% during the week. But then the Black Swan suddenly broke out, and Bybit was stolen by hackers of more than US$1.46 billion in ETH, which is the largest encryption security incident at present. The market panic intensified, with a large number of long stop losses on Bybit, and the market stabilized after falling.

Affected by US technology stocks, the S&P and Nasdaq closed down, while the yen continued to strengthen against the US dollar, and the market was risk aversion. BTC once fell below 89,000 $, and the current quote was 894,000 $ (the above data comes from Binance spot).

Market Analysis

Technology stocks weakened collectively, and the yen continued to strengthen against the US dollar, triggering risk aversion in the market

The spread of news that Microsoft has canceled its data center leasing plan has sparked discussions on Wall Street questioning the prospects of AI investment. Against the backdrop of the still pending issues of tariffs , most large technology stocks weakened collectively , with Nvidia falling more than 3%, Tesla and Meta falling more than 2%, Amazon and Microsoft falling more than 1%, and only Apple rose slightly. As of the close, the S&P 500 fell 0.5%, the Nasdaq Composite fell 1.21%, and the Dow Jones Industrial Average rose 0.08%.

The yen rose nearly 6% in six weeks as the market bets the Bank of Japan would raise interest rates, with the current exchange rate against the US dollar at 149.38 and is expected to challenge the nearly three-month high of 148.84. Market risk aversion sentiment soared, and BTC fell below $89,000 on the 25th, and the market fear of greed index was extremely fearful. International gold prices hit a new record high, with COMEX gold futures rising 0.49%, which had risen to $2,974 before the U.S. stock market.

ETH has a large downward pressure, and the continued decline may lead to the continued weakening of the counterfeit market

Bybit hackers still hold some ETH, and the market generally believes that the asset will have an impact on the price of ETH. At the same time, it was previously expected that Bybit would buy ETH in large quantities on the open market, but this assumption proved not to be true. Affected by this information, ETH leveraged positions decreased, and the open interest contracts for ETH futures on the 24-day were significantly reduced. Currently, ETH is priced at 2,394$ and is about to break through the core support level. The strengthening of the yen has also aggravated the price fluctuations of ETH. If ETH continues to fall, it may lead to a chain reaction of the entire copycat market.

Market hot spots

Nvidia 's financial report on Thursday attracted much attention, and the January personal consumption expenditure (PCE) index is also the market focus

The market is looking forward to Nvidia's financial report to be released on Thursday, and its financial report and performance outlook have an important potential impact on the entire AI industry chain.

At the same time, the January personal consumption expenditure (PCE) index to be released on Friday is also the focus of the market. It is the Fed's preferred inflation indicator. Fed official Goulsby said the Fed should remain "cautious" as government policy adjustments occur, and he still believes interest rates will fall after a period of uncertainty and believes that rising consumer inflation expectations have little impact on the Fed. Satisfied with progress on the road to achieving the 2% inflation target.

Crypto regulation improves, OKX Seychelles reaches settlement with the U.S. Department of Justice

On the 22nd, Coinbase Chief Legal Officer Paul Grewal said that the US SEC has agreed to withdraw the lawsuit against Coinbase and cannot be filed again, and Coinbase has paid $50 million in legal fees for the case. On the 25th, Aux Cayes FinTech Co. Ltd., one of OKX's subsidiary, announced a settlement with an investigation by the U.S. Department of Justice, acknowledging that the company had conducted remittance business in the United States without permission. To reach the settlement, the company agreed to pay a $84 million fine and waived about $421 million in revenues earned from U.S. customers during that period.

The market generally believes that cryptocurrency regulation has gradually improved after Trump takes office. According to Fox Business reporter Eleanor Terrett, given the SEC's recent concerns about the staking business, the agency may revisit last year's lawsuit against ConsenSys over its MetaMask staking service. In addition, the SEC has previously accused ConsenSys of engaging in unregistered brokerage, but the allegation has now been dropped, similar to the allegations dismissed in the Coinbase lawsuit.

Disclaimer: The above content does not constitute investment advice, sale offer or purchase offer invitation to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offer or invitations may be prohibited by law. Digital asset trading can have great risks and instability. Investment decisions should be made after careful consideration of personal circumstances and consulting a financial professional. Matrixport is not responsible for any investment decisions based on the information provided on this content. **
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