Financial markets are volatile, Crypto Assets prices are fluctuating

Market Overview

The controversy surrounding the Federal Reserve continues to ferment in American politics. Trump pressured Powell at the Federal Reserve headquarters regarding the $3.1 billion renovation cost and called for interest rate cuts again. Although the idea of firing Powell has been temporarily shelved, White House officials and Republican lawmakers are still criticizing the Federal Reserve for "mismanagement" and "misleading Congress," trying to undermine its credibility. Some analysts believe that this is an unconventional public opinion war by Trump to promote interest rate cuts and also to divert public attention from other controversies. However, the current financial environment is already quite loose, which contradicts Trump's demand for significant interest rate cuts.

Economic data shows that the financial conditions in the United States are extremely loose: the Chicago Fed's general financial conditions index has hit a three-year low, major stock indices are repeatedly reaching new highs, the size of money market funds has reached $7.1 trillion, and household deposits remain high. This flood of liquidity puts the Federal Reserve in a dilemma------ inflation is still above the target and the job market is strong, but the government is demanding a significant interest rate cut citing pressure from Treasury issuance, analysts are concerned that cutting rates at this time may exacerbate the stock market bubble.

In the technology sector, artificial intelligence continues to lead market trends. An AI company plans to launch a new generation of large language models in early August, while Tesla's stock price is under pressure due to declining revenue and a pessimistic outlook.

Stablecoins remain an important topic in the crypto market. Some analysts believe that the large-scale application of stablecoins will mainly focus on three areas: B2B settlement, crypto assets and the DeFi ecosystem, as well as the expansion of sovereign finance. The combination of stablecoins and smart contracts can significantly enhance the efficiency of cross-border enterprise settlements and supply chain finance. Within the crypto ecosystem, stablecoins have become a core liquidity infrastructure. In addition, stablecoins pegged to national currencies are expected to become important tools for promoting currency internationalization and de-dollarization.

Crypto Assets Market Analysis

Bitcoin is facing short-term correction risks. The key range that multiple analysts are focusing on is between $113,000 and $115,000. Some viewpoints suggest that the price is diverging from technical indicators, coupled with the presence of a futures contract gap, indicating a potential downward adjustment. Bitcoin is encountering strong selling pressure at the $120,000 resistance level, and there has been a net outflow in spot ETFs over the past three days, but the bulls have temporarily defended the $115,000 support level. If it breaks above $123,000, it may advance towards the $135,000 to $150,000 target; conversely, if it drops below $110,000, the bears may gain the upper hand. Despite the short-term correction risks, the medium to long-term outlook remains optimistic, with some analysts giving a target price of $200,000.

In contrast, Ethereum shows relative strength. Data models indicate that Ethereum has solid support in the $2000-$3000 range, with key resistance above at $4500. Short-term focus is on the critical liquidity price of $3,476. The long-term target price is optimistic at $10,000. However, there are also warnings that Ethereum may face a pullback, due to reasons including technical overbought conditions and rising borrowing costs that could trigger leveraged trading liquidations. Historical data shows that Ethereum's average return in the third quarter is 8.19%, and 22.59% in the fourth quarter.

Market funds are flowing from Bitcoin to Ethereum and other altcoins, but a full "altcoin season" has not yet been confirmed. In the NFT sector, a listed company acquired a well-known NFT for $5.15 million and plans to incorporate it into its revenue strategy. There are views that NFTs are the ultimate game of internet status, predicting that the performance of NFTs priced in dollars will outperform Ethereum in this cycle.

In addition, after a certain tech tycoon announced the launch of an AI version of a short video application, the token with the same name surged over 100% in a short time, and then the increase narrowed to 50%.

Key Data

• Bitcoin price is $115,774, with a year-to-date increase of 23.39%.
• Ethereum price is $3,638.16, with an annual increase of 8.78%
• Market Fear & Greed Index 71, in a state of Greed
• Bitcoin market share 60.8%, Ethereum 11.6%
• Approximately 200,000 people globally liquidated in the past 24 hours, totaling $700 million.
• Bitcoin ETF saw a net inflow of $227 million in a single day, while Ethereum ETF has recorded net inflows for 15 consecutive days.

Market Outlook

• A trading platform will delist multiple coin perpetual contracts.
• Multiple projects will unlock tokens in the near future, with a total value of approximately 30 million USD.
• The project with the largest decline among the top 100 by market capitalization fell by over 20%.

Industry Trends

• The founder of a certain payment company is suspected of transferring a large amount of XRP to an exchange.
• A certain foundation intends to raise $400 million for the project's treasury.
• Multiple institutions have increased their holdings of Bitcoin and Ethereum, with a total value exceeding 2 billion USD.
• New compliant stablecoin project launched
• The next round of compensation from a certain exchange will be executed at the end of September, involving an amount of 1.9 billion USD.

The Crypto Assets market is still in a state of consolidation and fluctuation. Investors need to closely monitor various positive news and risk factors, and rationally view market volatility.