Last week's rally indeed wiped out the shorts, but after the surge, there was no follow-up, making the overall rhythm seem a bit weak.

The performance of Bitcoin best illustrates the issue. It finally broke above the 97,000 level, but then no one stepped in to buy. Even more absurd is that the US stock market either drags the coin price down or the coin price copies the moves, as if neither side knows how to coordinate. In the short term, it's hard to see a clear direction, so we can only keep observing.

Ethereum also fell into a sideways trend, with good news emerging constantly, but the market seems to be tired of hearing it. Solana is a bit different; on-chain activity has started to heat up. Whether it can drive a rebound in the main token depends on the momentum it can sustain.

From a fundamental perspective, several signals are worth noting. CME Group is about to launch futures contracts for Cardano, Chainlink, and Stellar, reflecting an expanding recognition of crypto assets in traditional finance. Federal Reserve official Bostic stated that due to persistent high inflation, tightening policies need to continue, which puts some pressure on risk assets. However, BlackRock CEO said that the AI bubble doesn't exist at all, and there is ample room for rate cuts, which gives risk assets some room for imagination.

These subtle changes in macro policies could become turning points for the next phase of the market.