Crypto Assets Market Dynamics: Ethereum rises strongly, Bitcoin experiences volatility and consolidation.

Market Overview

In the current macroeconomic situation, the market is closely watching the challenges faced by the independence of U.S. monetary policy. The focus is on the potential political influence that may be exerted on the Federal Reserve Chairman, which is seen as a possible undermining of the foundation of the Fed's independence. Analysts are concerned that if the Fed's independence is compromised, it could lead to a loss of control over long-term inflation expectations.

Wall Street quickly reacted, leading to the so-called "policy hedging" strategy. For example, some analysts suggested buying short-term government bonds and selling long-term government bonds to steepen the yield curve as a hedge against interest rate cut expectations and inflation risks. There are also strategists who recommend constructing a hedge by betting on a rise in the breakeven inflation rate.

In such a market atmosphere, Ethereum performed strongly, with prices breaking through $3600. Analysts believe there are three main driving forces behind this: the U.S. crypto assets legislative process, institutional funds flowing in through channels like ETFs, and the decline of Bitcoin's market dominance. Analysts believe that Ethereum's robust DeFi and smart contract ecosystem provides solid long-term value support.

In terms of Bitcoin, it closed with a bearish candle after reaching a new high last week, with prices oscillating between $115,000 and $123,000. There is a large number of buy orders in the $114,000 to $116,000 range, and a break below could trigger stop-loss liquidation. Some analysts predict that the peak of the cycle may occur in October within the range of $133,665 to $151,539. The options market shows significant divergence, with bears laying out put options in the $100,000 to $110,000 range, while bulls are constructing options with strike prices as high as $190,000.

The technical analysis of Ethereum shows that after ETH breaks through the resistance zone of $3,250-$3,500, the short-term target points to $4,000, at which time a large number of short positions may be liquidated. However, the current RSI overbought condition warns of a pullback risk. Institutional funds provide fundamental support through continuous inflows via ETFs.

Key Data

• Bitcoin: $118,604, year-to-date +26.73%
• Ethereum: $3,773.44, Year-to-date +13.13%
• Fear and Greed Index: 72 (Greed)
• Market share: BTC 60.1%, ETH 11.6%
• 24-hour BTC long-short ratio: 49.25%/50.75%
• 24-hour liquidation data: A total of 121,658 people have been liquidated globally, with a total liquidation amount of 356 million USD.

ETF Capital Flow

• Bitcoin ETF: +$363 million
• Ethereum ETF: +$403 million

Market Outlook

The market will pay attention to the following events in the near future:

• A trading platform will remove the seed labels for multiple tokens.
• Multiple new projects will be launched on the trading platform.
• Some tokens will be unlocked
• The White House Digital Asset Market Working Group is expected to release its first encryption policy report.
• The Federal Reserve will hold a meeting on bank capital.

Overall, the Crypto Assets market remains vibrant, with a noticeable influx of institutional funds, but short-term pullback risks should also be heeded. Investors should closely monitor regulatory developments, ETF fund flows, and changes in on-chain indicators.