The traditional financial market is still struggling to digest the volatility of the US economy, while the tension from the US-China trade war continues to have a major impact. This has made it difficult for the S&P 500 index to maintain the 5,000-point level, leading to strong volatility in the cryptocurrency market. Recently, Bitcoin (BTC) has touched a short-term level of $92,000, while Ethereum (ETH) has dropped to $2,100. The postponement of tariffs on Mexico and Canada may bring some relief to the cryptocurrency market. However, the risk from the US-China trade war remains.
The announcement by David Sacks - the "cryptocurrency king" in the US - about a new working group to promote stablecoin legislation and consider the possibility of establishing a strategic Bitcoin reserve fund could have a significant long-term impact. Although BTC has shown resilience in maintaining above $90,000, experts remain cautious about the geopolitical risks caused by the US-China tensions. The market currently lacks strong catalysts and needs to be vigilant against the risk of price declines, especially in the context of recent large-scale liquidation transactions.
