Crypto Market Weekly Report: Bitcoin and Ethereum Performance This Week

This week, the overall trend of the crypto market is a decline. Bitcoin has been significantly affected by the Mt. Gox compensation distribution event, leading to a larger drop. The price volatility of Ethereum is narrowing, which indicates that the negative impact of the spot ETF "good news has run its course" is rapidly diminishing, favoring long-term price trends.

Important Event Review

Mt. Gox compensation progress

The bankruptcy compensation work is ongoing, and this week we continue to transfer Bitcoin from the address to the exchange in preparation for compensation, with 32,899 coins remaining to be distributed. Although the Bitcoin price did not experience significant fluctuations at the beginning of the compensation plan, as other uncertainties increased and market purchasing power declined, the event began to have an impact on the price.

The Federal Reserve keeps interest rates unchanged.

The Federal Reserve announced on Thursday that it would maintain the interest rate at 5.25%, in line with market expectations. Subsequently, Powell hinted at a possible rate cut in September, which was also anticipated. This led traders to begin expecting a potential rate cut of 50 basis points in September, driving U.S. stocks higher and bond yields lower. However, this also caused liquidity in the crypto market to be drained, resulting in a situation where U.S. stocks rose while cryptocurrencies fell.

Geopolitical tensions escalate

On July 31, the top leader of Hamas was killed in an airstrike in Tehran, Iran. This incident may further escalate tensions in the Middle East. If Iran intervenes directly, the United States could be drawn into the conflict. Following the announcement, U.S. stocks experienced varying degrees of decline, while oil and gold prices rose in the short term.

Altcoin Market Overview

market sentiment

This week, the market fear index has significantly decreased to 12%, entering the extreme fear stage, a noticeable drop from last week's 42%. This is mainly influenced by macro policy uncertainty, escalating geopolitical conflicts, and factors such as Mt. Gox compensation. After the Federal Reserve hinted at a rate cut in September, market liquidity has shifted towards the bond and stock markets, leading to a decline in purchasing power in the crypto market. Investors generally maintain a wait-and-see attitude, avoiding risks.

Top Gainers Analysis

The five tokens with the highest increases this week are distributed across different sectors, with growth rates all lower than last week, indicating a significant correction in the overall Altcoin market. Meme coins are performing poorly, with most in a downward trend.

popular track

The SocialFi sector performed the best this week, mainly due to the strong performance of TON. TON accounted for 93.62% of the market value in this sector, rising by 2.41% this week, with an annual return rate of up to 458.84%. However, other SocialFi projects generally experienced a decline.

The overall performance of the Meme sector is poor, with only 3 of the top 500 Meme tokens by market capitalization rising. This reflects the current market's strong risk-averse sentiment and insufficient liquidity.

Outlook for the Coming Week

1. Bitcoin may continue to fluctuate widely. The Mt. Gox compensation is ongoing, coupled with increasing macro uncertainty and insufficient market liquidity, making it difficult to see a significant breakthrough in the short term.

2. Ethereum may continue to be under pressure. After the approval of the spot ETF, Grayscale's ETHE continues to sell off in large quantities, with daily sales remaining around 40,000 coins. The market's purchasing power is insufficient, coupled with the overall gloomy sentiment, making it difficult to reverse the decline in the short term.

3. Altcoins may follow the trend of the market. With increasing market uncertainty, investor sentiment is cautious, and there is a lack of new hot sectors or event catalysts, making it difficult to see independent market movements.