Recently, the financial market has shown an interesting trend. After the core PCE data was released, the US stock market performed remarkably, with the S&P 500 and Nasdaq indices quickly bouncing back, erasing the losses from the previous day. However, the crypto assets market has failed to rise in sync, with Bitcoin and Ethereum's performance relatively lagging, especially as Bitcoin continues to hover around yesterday's price, indicating a lack of market momentum.

This phenomenon does not indicate that cryptocurrencies will continue to fall, but rather reflects the fact that the current purchasing power of the crypto market is not as good as that of the stock market. Under the negative news, cryptocurrencies tend to fall even more; However, under the positive stimulus, the increase was relatively small. Currently, Bitcoin's relationship with U.S. stocks is similar to that of altcoins with Bitcoin – the long-term correlation is high, but the short-term difference is widening.

The current rise in crypto assets seems more like a byproduct of the rebound in the US stock market. Investors, seeing the rise in US stocks and favorable macro conditions, have reduced selling pressure, and some have started to make small purchases. However, the allocation of funds appears to show an "80-20 distribution": most flows are directed towards US stocks, with only a small amount entering the crypto assets market, resulting in a bounce back in crypto assets, but the momentum is clearly not as strong as that of the stock market.

Focusing on Bitcoin data, despite the price bouncing back, the turnover rate continues to rise, reflecting that investor sentiment remains unstable. As the weekend approaches, this uncertainty is likely to be amplified, which is a risk factor that market participants need to pay close attention to. The movements after the US stock market closes may bring some changes.

Despite a slight sense of panic in the market, the market structure remains relatively stable. Important support levels have not been breached, and even investors in a loss position mostly remain calm. The current panic sentiment may mainly come from short-term investors and arbitrage traders. Looking ahead to the weekend, market participants generally hope that no unexpected events will disturb the market.

Overall, the Crypto Assets market is facing challenges of disconnection from traditional financial markets. Investors need to pay attention to short-term market sentiment while also valuing long-term fundamentals and technical analysis to make more rational investment decisions.