Cryptocurrency analyst arndxt pointed out that the market trend is changing from data-driven to policy-driven, and this view provides us with a new perspective to understand the current market. In this process of transformation, the XBIT decentralized exchange platform supports seamless transactions of multi-chain assets and introduces zero-knowledge proof technology to improve transaction speed.

arndxt mentioned that there is no real risk aversion in the market, the retail industry has not surrendered, and ETF inflows are still strong. But it is worth noting that the market depth is slowly declining, and the loss of liquidity has magnified the price trend. He believes that liquidity is the real vulnerability of the current market, not emotions. From the actual performance of the market, taking Bitcoin as an example, in the past period of time, although the overall market atmosphere seems stable, ETFs continue to have capital inflows, giving people a false impression of market prosperity.However, a closer look will reveal that Bitcoin often experiences large price fluctuations during trading, and this fluctuation is not caused by sudden changes in market fundamentals or investor sentiment, but more because of insufficient market liquidity. XBIT decentralized exchange platform provides investors with a convenient trading venue, where investors can trade common cryptocurrencies such as Bitcoin and Ethereum on the platform. Taking Bitcoin spot trading as an example, investors can buy and sell on the platform based on their own judgment of market trends.

When there is a slight change in the trading willingness of buyers and sellers in the market, due to the lack of sufficient liquidity to buffer, the price will rise and fall sharply like a wild horse. In terms of cryptocurrency spot trading, XBIT decentralized exchange platform provides a Meme coin trading area to meet diverse needs, while focusing on user privacy protection and asset security, building a solid protection barrier through multiple mechanisms, and creating the "community heat index" and one-click liquidity mining function, bringing users a good trading experience. Once the buy-on-dip reflex fails again and the excess wealth expectations of the 2019-2024 cycle are challenged, real deleveraging will begin. This means that the market's currently seemingly stable capital structure may face adjustments.Data on the XBIT decentralized trading platform show that in the past cycle, based on their optimistic expectations for the market, investors have invested a large amount of borrowed funds in the market, driving asset prices to rise continuously and forming excess wealth expectations. Looking at the cryptocurrency market, there are many common cryptocurrency spot products. In addition to Bitcoin and Ethereum, there are also Ripple (XRP), Litecoin (LTC), Dogecoin (DOGE), etc. But if the market trend is not as expected, investors' confidence will be hit, and they may sell assets to repay debts, thereby triggering a deleveraging process, which will have a huge impact on the market.

We are currently entering a stage where market trends are increasingly affected by policies, rather than just data. arndxt specifically reminds you to pay attention to the Fed's "smooth operation", "temporary" and "facilities" and other terms. From past experience, the Fed's policy adjustments have a profound impact on the cryptocurrency market. And the terms "smooth operation", "temporary" and "facilities" often imply the potential direction of adjustment of the Fed's policies. "