Bitcoin delivered impressive results this week, rising by as much as 8%, with the price soaring from $59,000 to $64,000. Although Ethereum is also gradually recovering, its weekly increase was only 5% due to the outflow of ETF funds. In contrast, Bitcoin ETFs attracted significant inflows last week, while Ethereum spot ETFs underperformed.
Although the spot price of Bitcoin has not increased significantly, institutional investors are accumulating chips at an alarming rate, showing a situation of retail investors selling and institutions buying on a large scale. Institutional investors are buying Bitcoin through ETFs faster than any other ETF in history.
Although the interest rate cut did not immediately bring about a surge in liquidity, it heralded a policy shift and the market expected that liquidity would gradually become abundant in the future. This "expectation" is extremely valuable, and the next few months will be filled with the strengthening of this expectation.
Another key point at present is that the economic recession has not yet really appeared, and the unemployment rate and non-farm data are still within controllable range. Powell's speech also led the market to believe that the recession has not yet arrived.
Coupled with the uncertainty of the US election, Trump's possible coming to power is also a focus of market attention.
Summary: The coming months will continue to be full of liquidity expectations, the recession has not really come, and Trump’s political narrative has also added more variables to the market.
As the election approaches, trading becomes more difficult
As the US election gradually heats up, the cryptocurrency market has also been affected by the fluctuations in the election situation. Especially after Trump began to intervene in the cryptocurrency field and launched the "Made in the USA" Bitcoin policy, investors have included Bitcoin in Trump concept stocks.
As long as Democratic candidate Kamala Harris leads in the polls, the price of Bitcoin will fall. Although this phenomenon has been going on for some time, Bitcoin has not rebounded as strongly as the US stock market recently, mainly due to the fact that Trump's polls were surpassed by the Democratic Party.
The cryptocurrency community has even begun to trade based on changes in the election situation, and the two have become more closely linked, making cryptocurrency trading much more difficult. Looking back at Trump's presidency, he governed the country through Twitter, and the stock market fluctuated with his remarks, causing many hedge funds to lose a lot of money and go bankrupt in those years. Today, the close connection between the cryptocurrency market and politics has also made trading more complicated.
Looking ahead, the United States will officially enter a rate cut cycle in September, and the general election is expected to bring more favorable policies. In the long run, the cryptocurrency market still has high potential for growth.
However, this bullish trend may experience multiple fluctuations. Last week, the Federal Reserve hinted at a rate cut at the annual meeting of global central banks, and a one-point rate cut in September is almost a foregone conclusion. The U.S. Treasury yield has already reflected this expectation, with the 10-year U.S. Treasury yield falling from 4.2% a few months ago to 3.8%, corresponding to a rate cut of about 2 points.
If Bitcoin experiences a significant short-term decline, it is a good opportunity for long-term investors to enter the market safely.
Yesterday, the crypto community was shocked by the news: the founder of Telegram was arrested! This incident triggered a sharp drop in the $TON ecosystem, with both the locked volume (TVL) and the price of the currency falling sharply. Panic may continue unless the official provides a clear explanation.
But if you look at the top ten market capitalization giants in the cryptocurrency circle, you will understand the real reason why they can stay at the top!
The only two who didn't have a lawsuit, one was picking up girls and the other was playing with monkeys! Hahahaha
Regarding altcoins, here are some recent news to focus on:
In the past two days, we have repeatedly reminded that for those altcoins that have risen sharply, it is important to stop profits in time. Currently, Bitcoin is in an area with heavy selling pressure. Whether it continues to rise or there is a correction, altcoins will face a wave of declines.
As for those altcoins that have skyrocketed before, the decline is often much greater than that of other currencies. Even if they continue to rise in the short term, it is only to accumulate strength for the upcoming correction.
1. Nvidia will release its financial report this week, which will have a positive effect on the artificial intelligence sector, boosting the prices of AI, LPT, ARKM, FET and other currencies, and may also drive the trends of LUNA, USTC and VGX.
2. The election debate on September 10 will trigger market reactions and may have an impact on related assets.
3. CZ is expected to be released from prison on September 29, which is undoubtedly good news for Binance tokens such as BNB, CAKE, BAKE, etc.
In addition, for some altcoins with smaller market capitalization that have not yet risen significantly, such as LINA, COMBO, BEL, PERP, GTC, and OGN, these currencies that have performed strongly in the past are also worthy of attention and may usher in a wave of rotation opportunities.
Don't think about trading all the time every day
BB in May, NOT in June, blank in July, RARE SUN in August - all these have become the past.
Adjust your expectations, lower your requirements, and welcome the arrival of the altcoin market in September!
Even if the market is hot, don't have too high expectations for altcoins. Remember: reducing leverage and increasing the profit and loss ratio can truly achieve steady growth. Accumulate carefully and steadily move towards success!
This is where we will share this article for now; if you want to know more about exciting events in the circle, you can consult the community!
