Daily Summary:
BTC spot ETF has an overall inflow, while ETH spot ETF has a significant reduction in outflow
According to Farside Investor data, on August 1, the overall inflow of Bitcoin spot ETFs mainly came from the Grayscale mini-trust launched this week with $191 million and BlackRock with $xx billion in inflows. The main outflows were Grayscale GBTC with $71 million and Fidelity with $48 million.
The ETH ETF is currently experiencing overall outflows, with the main outflow coming from Grayscale ETHE, which is $78 million. The outflow has been significantly reduced compared to the first week of trading.
In July, Bitcoin whales accumulated 84,000 Bitcoins, setting a new record since October 2014
According to data from IntoTheBlock and TradingView, Bitcoin whales increased their holdings by more than 84,000 BTC in July. This is the largest monthly increase since October 2014.
Grayscale ETHE daily net outflow rate slows down
Grayscale ETHE's daily net outflow rate slowed down, with a net outflow of only $78 million yesterday, the lowest outflow since its listing. The total net outflow in the first eight trading days of listing reached $2.055 billion.
Jupiter's proposal to reduce the supply of JUP tokens is now open for voting
Jupiter posted that the proposal to "reduce the supply of JUP tokens" has now started voting, and its main goal is to provide more certainty, consistency and transparency for all JUP holders and the community.
For this proposal, Meow and the core team proposed to reduce the total supply by 30%, from 10 billion to 7 billion, with the team voluntarily cutting 30% of their designated allocation.
Market analysis: The market rebounded sharply, but the subsequent trend remains unclear
Market Trends
BTC: Yesterday, the price of Bitcoin fell sharply to around $62,500 and then rebounded quickly. It has now risen back above $64,500. Despite significant price movements, there are currently no clear signs of cash inflows from the BTC ETF. This suggests that the current rebound is likely to be a short-term phenomenon, and investors are advised to proceed with caution until the trend becomes clear.
ETH: Ethereum fell below the key support level of $3,100 yesterday, but then rebounded with the broader market and is now back above $3,200. It is worth noting that the outflow amount of Grayscale ETF was less than $100 million for the first time, indicating that the outflow pressure of ETF has been greatly reduced. This will help ease the selling pressure in the market, but investors still need to carefully observe the subsequent trend.
Altcoins: Altcoins rebounded with the overall market, but there is no obvious leading coin. There are only 115 tokens with an increase of more than 10% in the market, and market funds are still relatively dispersed. This shows that the current market lacks a clear direction of capital flow and may continue to fluctuate in the short term.
AHR999 Index: Today's AHR999 Index is 0.85, indicating a sharp drop in the index. The current price is a good buying opportunity for long-termists.
Fear and Greed Index: The current index is 57. Market sentiment has recovered after the rebound, but it is still in a rational range.
Market Hotspots
Meme Sector: Cat-like tokens in the meme sector (such as MIGGLES, MANEKI, POPCAT, etc.) have rebounded more than 15% from yesterday's lows. Although cat-like meme coins have performed relatively strongly in the past month, no coin has yet broken the $1 billion market cap mark. POPCAT and MEW were close to $1 billion at one point, but both have fallen back sharply.
Solana Ecosystem: SOL failed to break through the $200 mark again in July and has now fallen back to around $165. SOL's recent decline has also affected projects on the Solana ecosystem. Among the political market tokens at the end of July, tokens such as FIGHT and FEARNOT performed better than the tokens of the same name on the Ethereum chain.
in conclusion
The overall market is currently volatile. Both Bitcoin and Ethereum have shown signs of a short-term rebound, but lack obvious capital inflow support. The capital in the altcoin market is dispersed, and there is a lack of leading currencies. In terms of the macro environment, the Federal Reserve's monetary policy is approaching a cyclical transition, and the market is optimistic about interest rate cuts, which may bring new capital inflows to the crypto market. Investors should remain cautious in the current environment and wait for the market trend to become clearer before making decisions.
Macroeconomics: U.S. stocks fell more than 1%, and expectations for a September rate cut by the Federal Reserve rose
The three major U.S. stock indexes all fell by more than 1%. The S&P 500 fell 1.37% to 5,446.68 points; the Dow Jones fell 1.21% to 40,347.97 points; and the Nasdaq fell 2.30% to 17,194.14 points.
Popular U.S. stocks performed differently, with Apple down 1.68%, Nvidia down 6.67%, Meta up 4.83%, TSMC down 4.59%, Tesla down 6.55%, and Intel down 5.50%.
In the early morning of August 1, Beijing time, the Federal Reserve announced that it would maintain the target range of the federal funds rate at 5.25% to 5.5%. This is the eighth consecutive time that the Fed has kept the interest rate unchanged. The Fed said that if the fight against inflation continues to make progress, it may announce a rate cut at the meeting in September this year. Institutional sources generally believe that the Fed will start a rate cut cycle in September this year, and there is a high probability that the rate will be cut twice this year.
Overall, the Federal Reserve's monetary policy is approaching the time window for cyclical changes, and the market's expectations for a rate cut in September are high. The conditions for the Federal Reserve to cut interest rates are ripe, and it is about to enter a new round of monetary easing cycle.
