Analysis: Interest rate cuts and AI frenzy cannot hide liquidity concerns; Bitcoin may plummet and enter a deep adjustment

ChainCatcher news, the global market continues to celebrate under the dual boost of the Federal Reserve's interest rate cuts and the AI frenzy, with both the S&P 500 and Nasdaq hitting new historical highs, and the MSCI Global Index also reaching new peaks. However, behind this "liquidity + AI" feast, risks are quietly accumulating: credit spreads have narrowed to nearly 30-year lows, and funds are pouring in crazily driven by FOMO sentiment. The market seems unbreakable, yet it harbors fragility.

In stark contrast to the stock market's frenzy are the warning signals from Bitcoin. Analysts point out that BTC is currently around 112,000, with trading volume extremely low, short-term moving averages tangled, and a lack of volume confirmation for rebound signs, indicating severe market momentum deficiency. If 112,000 is breached, it may trigger a chain of selling pressure, and Bitcoin is very likely to plummet from its high, entering a deep adjustment period. Amidst the apparent prosperity of the global market and the undercurrents surging, flexibly utilizing advantageous tools may become the key for investors to fend off risks and seize opportunities.