Bitcoin and Ethereum prices pullback, follow CME gap repair

Core inflation data in the United States has been below expectations for five consecutive months, but there are differing opinions in the market regarding future trends. Some believe that the impact of tariffs will become evident in July and August, while others emphasize the pricing restraint of companies amid weak demand. There are also differing views within the Federal Reserve, with Powell suggesting a potential lowering of the interest rate cut threshold, while Logan advocates for maintaining a tight policy. Currently, the Federal Reserve tends to adopt a wait-and-see approach.

In terms of regulation, the U.S. Congress has accelerated the legislative process by establishing "Cryptocurrency Week", with the "GENIUS Act" being the core of the regulatory system. This act incorporates the stablecoin market into the regulatory framework, requiring reserves to consist of cash and short-term U.S. Treasury bonds. This initiative not only regulates the market but also helps to consolidate the digital hegemony of the dollar and alleviate the fiscal deficit. At the same time, giants like Amazon and JD.com are laying out plans for dollar/Hong Kong dollar stablecoins, attempting to establish an efficient cross-border settlement network.

After Bitcoin reached a new high of $123,000, it entered a pullback phase. Several analysts are following the technical repair of the CME futures gap. It is generally expected that the price may fall back to the range of $113,800-$117,000 to fill the gap, after which a new round of increases may occur. Glassnode believes the market has not yet peaked, with the next key level at $136,000.

Ethereum's market capitalization share has surpassed 10%. Analysts believe that the trends of stablecoins and tokenization are driving the growth of ETH demand. On the technical side, after filling the gap in the range of $2,830 to $2,925, Ethereum is expected to break through $3,200.

The altcoin market is showing sector rotation, with payment tokens leading the charge, while major coins are building momentum, and the Solana ecosystem and Layer 1 projects are forming a relay team. The popularity of Chinese Meme narratives remains strong, with several related tokens reaching all-time highs.

Market data shows that as of July 16, 12:00 HKT, the price of Bitcoin is $117,798, and the price of Ethereum is $2,969. The Fear and Greed Index is at 71, in the greed range. The market shares of BTC and ETH are 62.9% and 10.2%, respectively. In the last 24 hours, a total of 106,515 people were liquidated globally, with a total liquidation amount of $355 million.

Bitcoin ETF has seen net inflows for 9 consecutive days, totaling $403 million; Ethereum ETF has also experienced net inflows for 8 consecutive days, totaling $192 million.

Recent important events include: Binance wallet will conduct Hyperion (RION) Bonding Curve version TGE; Eclipse will open ES token airdrop; the U.S. House of Representatives will hold a hearing on digital asset tax policy; multiple projects will carry out token unlocks.

Among the top 500 by market capitalization, today's biggest gainers include Staika (STIK), Osaka Protocol (OSAK), and PepeCoin (PEPECOIN), etc.

In addition, Standard Chartered Bank has launched spot trading services for Bitcoin and Ether; Ondo Finance acquired Strangelove to accelerate the development of the RWA platform; SharpLink raised approximately $413 million and partially invested in ETH; a certain whale institution reduced its holdings by 15,000 ETH through Wintermute.