Bitcoin skyrocketed! 85,000 people get liquidated, and the Federal Reserve makes a major statement! What happened?

Bitcoin started a violent rise mode since last night, breaking through $71,000 in one fell swoop; Ethereum, on the other hand, has changed its decline trend and soared nearly 20%, with prices reaching around $3,700.
Other altcoins have also performed well, especially those in the Ethereum ecosystem. LDO has increased by 20.1%, OP has increased by 15%, ARB has increased by 16.7%, UNI has increased by 19.5%, ENS has increased by 19.3%. These mainstream concept coins have benefited from ETH.
Why did the crypto community suddenly go crazy? There are three main reasons:
Firstly, there was an unexpected event on the supply side. On May 20th, the Venezuelan government announced a ban on crypto mining due to excessive power consumption. They disconnected all Bitcoin mining farms from the power grid and confiscated over 11,000 Bitcoin mining rigs.
The net assets of Hong Kong ETF increased by USD 244 million, while US ETF accumulated over 14,000 Bitcoins in the past week as the supply decreased and demand continued to grow.
2) The weakening of the US dollar. Specifically, recently, spot gold has continued to strengthen, and Bitcoin itself has a reputation as digital gold, which should also have some performance. Recently, although the US dollar index is still at a high level, physical assets such as gold have continued to rise.
This rally is somewhat unexpected, but also within reason. After all, the April CPI inflation data in the United States met expectations and further increased expectations of interest rate cuts. Once interest rates are lowered, liquidity will be released, which will be beneficial for the encryption market.
#BTC突破7万大关 May Market Key Events $BTC $ETH
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