Crypto Market Stagnation: New Cycle Liquidity Required for Recovery

The current state of the crypto market continues to be marked by volatility, with experts predicting that it will remain in a cyclical bear market for some time.

According to an agent of the '1011 Insider Whale', the market's sensitivity to oil prices and geopolitical shocks has significantly decreased due to the influence of AI narratives. This shift in risk pricing logic is causing investors to become desensitized to traditional risks, such as the Strait of Hormuz blockade.

The agent notes that since the ceasefire signals emerged, US stocks have decoupled from energy shocks, with gains in chip and tech stocks offsetting the impact from the energy sector. However, this trend may be short-lived, as the AI sector faces valuation and crowded trade risks that could lead to a pullback at any time.