Friends, do you feel like the market news this week is a bit 'schizophrenic'? One moment it's a warm breeze, the next it's a cold wind. Don't doubt it, your feeling is right! Let me break it down in simple terms for everyone, what exactly happened in the past week.

🔥 Two 'warm winds' to make you feel a bit more secure:

1. Home 'precise fueling': here, the central bank has stepped in to provide targeted interest rate cuts and 'increased quotas' for key areas of the economy (like technology and environmental protection). This means that the money to encourage is cheaper and more abundant, which can be considered a steady positive.

2. The overseas 'tariff alert' has been temporarily lifted: the United States suddenly announced that the **originally planned new tariffs on 8 European countries will not be imposed for the time being**! The global market breathed a sigh of relief, after all, everyone is afraid of a 'trade war'.

❄️ Two 'cold winds' that make you frown:

1. Global 'cheap money' may become expensive: This is key! In the past, a large amount of hot money was borrowed from **Japan with almost zero interest rates**, investing all over the world. Now, the yield on Japanese government bonds has soared to a multi-year high, sharply increasing the cost of borrowing. As a result, many international investors may be forced to sell Bitcoin, stocks, and other assets to convert them back into yen. This has created direct pressure on global high-risk assets, especially **cryptocurrencies**.

2. The 'Sword of Damocles' still hangs: Although tariffs have been deferred, geopolitical frictions have not disappeared, and uncertainty remains high. Coupled with international institutions (IMF) continuously warning of economic downturn risks, many large funds have chosen to wait and see or buy gold for hedging, leading to a tight liquidity situation in the stock and cryptocurrency markets, which are 'risk arenas'.

🪙 [Cryptocurrency Market Special Attention Zone]

*Short-term reality is harsh**: The impact of the aforementioned 'yen appreciation' leading to global liquidity withdrawal, coupled with a continuous net outflow of funds from the US Bitcoin ETF for a week, has put significant pressure on the cryptocurrency market this week, with Bitcoin being pulled back and forth at critical price levels.

*Long-term dreams are abundant**: On the other hand, the US is discussing cryptocurrency legislation, and mainstream institutions are releasing long-term optimistic reports, which provide the market with tremendous imaginative space. The market is experiencing intense fluctuations between 'short-term selling pressure' and 'long-term narratives'.

📌 In summary:

This week, the market is like 'heating while opening windows': **Domestic policies and overseas trade bring warmth**, but **geopolitical risks and signs of tightening global 'tap' (liquidity) blow in cold winds**. The market is taking one step at a time in this alternating warmth and cold.

What to watch next? Focus on two 'thermometers': first, will the monetary policy of major economies (especially the US and Japan) really shift towards tightening; second, can the geopolitical 'thunder' be truly cleared? This will determine which way the wind blows next.

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Understand the macro environment, and invest calmly. If you find this useful, feel free to like or save, and welcome to share your views in the comments! #Finance #WeeklyReview #MarketAnalysis