Crypto Market Weekly Report: Comprehensive Rebound, Liquidity Warms Up

Recently, the global financial markets, including the crypto market, have been significantly affected by changes in trade relations. Market participants are closely monitoring relevant developments and adjusting their asset allocation strategies and economic expectations accordingly.

With some countries reaching preliminary trade agreements and progress in communication between major economies, market sentiment has significantly improved. Both the stock market and the crypto market have seen a notable Rebound. The S&P 500 index has recovered its previous losses, while Bitcoin has performed even stronger, surging close to its previous highs this week.

Driven by favorable factors, Ethereum and other cryptocurrencies have also experienced a significant Rebound. Data shows that Ethereum's weekly increase reached as high as 39.01%, setting a record for the largest weekly increase in this cycle. Market observers point out that the altcoin season may have already begun.

The key question now is whether this rebound can be sustained and whether market liquidity can recover to a level sufficient to drive a trend reversal in the second quarter.

At the policy level, some regions have introduced favorable new regulations for crypto assets. For example, a certain state has passed a bill allowing state financial institutions to purchase large cryptocurrencies such as Bitcoin, while another state has also launched a similar reserve plan. These policy breakthroughs may encourage more regions to follow suit.

On the technical front, Bitcoin has risen for several consecutive weeks, breaking through multiple moving averages and returning above an important trend line. This indicates that the market has largely digested the effects of previous bearish factors, and a reversal in the medium to long-term trend may be on the horizon.

On the funding side, both stablecoins and spot ETFs have shown a net inflow of funds, providing strong support for the market. At the same time, the leverage level in the market has increased, indicating that risk appetite is on the rise.

It is worth noting that despite the continuous rise in prices, the selling pressure on Bitcoin is gradually easing. This means that the short-term profit-taking positions have largely been cleared, and the market's reluctance to sell has intensified, creating favorable conditions for a breakthrough to new highs in the future.

Currently, the market as a whole is in a relatively safe state, and the vast majority of positions are in profit. In this situation, Bitcoin is likely to challenge its previous highs in the short term.

Overall, the cryptocurrency market is experiencing a comprehensive Rebound, with Liquidity significantly improving. Various indicators show that the market has entered an upward cycle, but whether it can be sustained still requires further observation.