BNB

On December 27, the first trading day of the U.S. stock market after Christmas showed a lackluster performance, with the three major indices collectively experiencing slight declines. The Dow Jones fell by 0.04%, the S&P 500 dropped by 0.03%, and the Nasdaq decreased by 0.09%. Meanwhile, the cryptocurrency market exhibited a pattern of rising and then falling back. Bitcoin briefly surged above $89,000, later retreating by 3.2% from its daily high, while Ethereum approached $3,000 before turning down, continuing its recent weak trend.

Currently, the correlation between the U.S. stock market and the cryptocurrency market has significantly increased. The Federal Reserve's interest rate policy, global economic expectations, and other macro factors have become common core drivers for both markets. Additionally, through spot ETFs, a large number of traditional stock investors and institutions have entered the cryptocurrency market, leading to a high degree of synchronization in their decision-making. The high-level fluctuations in the U.S. stock market, combined with Bitcoin's 30% drop from historical highs, have prompted investors to adopt a "tax loss harvesting" strategy, selling off losing cryptocurrency assets to offset capital gains tax liabilities from the stock market, further intensifying the selling pressure on cryptocurrencies.

Overall, market liquidity remains cautious. The Christmas holiday has caused a pause in the update of Bitcoin spot ETF fund flow data, on-chain activity has cooled down, and deleveraging in the futures market is evident. The cryptocurrency fear and greed index remains in the "fear" range. Technically, Bitcoin is oscillating around the $87,600 pivot, while Ethereum fluctuates near $2,940, with trading volume shrinking by over 45% compared to usual. In the short term, the cryptocurrency market is highly likely to continue its range-bound oscillation.