Victory Securities: Bitcoin may continue to fluctuate due to the fall of US stocks, but virtual assets are still resilient in the market

[Victory Securities: Bitcoin may continue to fluctuate due to the impact of the decline in US stocks, but virtual assets are still resilient in the market] Golden Finance reported that Zhou Lele, deputy chief operating officer of Victory Securities, published an article analyzing that the virtual asset market has reached the lower edge of the volatile trend. Last week, the price of Bitcoin fell by about 4.25% during the week, and Ethereum fell by about 5.29%. The decline in virtual assets is mainly due to the impact of US economic data, but from the perspective of the virtual asset market, it is still resilient. In terms of capital flows, the over-the-counter Bitcoin ETF outflow last week was about US$706 million, and the Ethereum ETF outflow was about 98 million. Despite the outflow of funds, if market sentiment remains positive, it may only be a temporary adjustment rather than a change in the long-term trend; the Bitcoin contract holdings of exchanges are at a historical high, which usually means that capital remains on the market, showing traders' firm commitment to the market. This dynamic of funds may be a sign of market participants' recognition of the current price level and their medium- and long-term optimism for the second half of the bull market. From the perspective of the chain effect, the average market value of the top 10% of US listed companies/the average market value of the other 90% of US listed companies is 28 times, and the top companies are constantly concentrated, which means that a round of rotation within the US stock market may be about to begin, which will lead to a decline in virtual assets. In this week's virtual asset market turmoil, the prices of Bitcoin and Ethereum have experienced a decline, but this does not necessarily indicate a change in the long-term trend. Market volatility is its inherent characteristic, and investors should pay more attention to the fundamentals and long-term value of the market. As the market develops and matures, perhaps more stability and predictability can be foreseen.