Why is the market always "unable to rise" despite decreasing liquidity?

CN
7 hours ago

Although yesterday was Monday, due to the closure of the US stock market, the global risk market lacked a core anchor point, and the cryptocurrency market remained in a state of "finding direction" throughout the day, with the overall weak structure unchanged. Recently, the market has repeatedly verified a question: the sudden surge brought about by news stimulation will likely fall back if there is no new capital to support it at high levels. What really needs to be focused on now is not whether there will be a rebound, but whether the strength of the bears will further increase.

From the perspective of capital behavior, the current market's risk aversion sentiment remains strong. Today, Tuesday, the Asian market showed weak performance, with prices returning to the middle range of the previous surge, indicating that the market still lacks confidence in chasing higher. More critically, the current global liquidity environment is itself tight, and recently both China and the United States are simultaneously welcoming super-large scale IPO financing.

In China, Changxin Storage is expected to raise 29.5 billion yuan; in the United States, SpaceX's new round of financing is as high as 75-80 billion dollars. For a global market that is already short on liquidity, such a level of capital siphoning effect will undoubtedly further suppress the activity of capital in risk assets.

Essentially, the current cryptocurrency market is not lacking in "stories," but rather in "money." Without new liquidity continuously entering the market, any rise can easily evolve into a peak followed by a retreat driven by emotions.

Overall, the current market is still in a weak oscillation phase. Before there is a significant improvement in the capital situation, it is easier for the market to maintain a rhythm of repeated pulling and high-level consumption.
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This article is originally published by 【Huiying Community】 and represents personal views only. Due to delays in information transmission, the content is for reference only and does not constitute any investment advice. Please judge rationally and operate cautiously.
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