Matrixport Market Observation: Market funds rotate as BTC consolidates at high levels. Can ETH and altcoin sectors take

Last week (July 15-July 21), BTC was sideways, ETH led the rise, and SOL broke through the $200 mark, attracting more buying. After hitting a record high of $123,218, BTC price started a consolidation period. This week, the price fluctuated widely around $116,000-$119,000, with the largest fluctuation of 4.54% during the week. The current price is stable around $117,700.

Last week, driven by favorable factors such as the passage of the GENIUS Act and the slowdown in inflation, funds rotated from BTC to mainstream altcoins. With the strong rise of ETH, mainstream altcoins such as SOL, XRP, and DOGE also rose sharply. ETH rose to $3,860, a weekly increase of 31.63%. The current price has fallen back to around $3,650 (Binance spot, July 22, 16:10).

Last week, the three U.S. stock indexes rose and fell differently. As of the close of July 21, the Dow Jones Industrial Average fell slightly, while the SP 500 and the Nasdaq rose slightly. This week, many technology giants will release their earnings reports, which will become the focus of the market.

سوق Interpretation

Altcoins lead gains, تشفير market cap exceeds $4 trillion

Last week, the cryptocurrency market rebounded strongly, with the total market value exceeding $4 trillion, the second time in history. BTC performed moderately, ETH rose 31.63% in the week, SOL rose 26.74%, XRP rose 28.34%, DOGE rose 52.58%, and mainstream altcoins rotated upward. ETH spot ETF inflows of $2.2 billion in a single week, and the activity of the sector increased significantly. Favorable policies, institutional support and liquidity release jointly drive the market, and market risk appetite has rebounded significantly. In the short term, we need to be wary of high-level corrections, but medium-term structural opportunities are expected to continue.

CPI and PPI data are stable, US stocks rise, and BTC falls back from highs

On July 15, the US announced that the CPI annual rate in June was 2.7%, in line with expectations, and the core CPI annual rate was 2.9%, lower than the expected 3.0%. CPI has rebounded from its low point, mainly affected by rising oil prices and tariffs. The second wave of mild inflation has emerged, but the magnitude is limited, and it has not yet prompted the Fed to turn hawkish, and the market has reacted flatly. On the 16th, the PPI annual rate was 2.3%, lower than expectations and the previous value, indicating that the US economic growth rate has slowed down. After the data was released, US stocks continued to rise, the US dollar index rebounded, and gold fell slightly. FedWatch showed that the probability of a rate cut in September was slightly higher than 50%.

Starting from July 11, the Trump administration raised Canadas unified tariff to 35%, and sent a circular of tariffs of up to 20-50% to 23 countries including the European Union and Mexico, which will be implemented from August 1. The rise in policy risks has aggravated market concerns about fiscal and inflation. After hitting new highs, BTC fell back by 1.53% in the short term due to the cooling of interest rate cut expectations and the strengthening of the US dollar. The market risk preference has become cautious, and we need to pay attention to macro data and policy trends in the future.

Trump signed the GENIUS Act, and three major bills were implemented collectively

On July 17, the U.S. House of Representatives passed three key crypto bills, the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act, at one time, opening a new chapter in U.S. crypto regulation and innovation. The next day, U.S. President Trump officially signed the GENIUS Act, establishing a federal regulatory framework for stablecoin issuance and trading, bringing stablecoins into the compliance era and becoming the second largest core crypto use case after BTC.

The favorable policies were quickly transmitted to the market. ETH was driven to surge by more than 20% in a single week, and the altcoin market started. BTC consolidated at a high level this week. Although there was a short-term profit release, corporate procurement and continued inflows of Spot ETFs provided solid support for the bull market.

Market Hotspots

US pension funds continue to increase their allocation of BTC concept stocks, accelerating the encryption process of the pension market

Last week, the Ohio Public Employees Retirement System (PERS), one of the largest public pension funds in the United States, significantly increased its holdings of MicroStrategy (now Strategy) shares in the second quarter. This move shows that mainstream U.S. pension funds have gradually included BTC-related assets in their long-term allocation vision.

At the same time, the Trump administration is pushing for an executive order to allow American family retirement accounts such as 401k to allocate alternative assets such as cryptocurrencies, gold and private equity, involving a market size of up to $9 trillion. If the reform is implemented, it will greatly expand the allocation space of BTC and related concept stocks in the US pension system.

JPMorgan Chase and Citigroup accelerate the layout of stablecoins, and traditional banks promote the mainstreaming of encrypted payments

During the Crypto Week of the US Congress, senior executives of JPMorgan Chase and Citigroup successively stated that they are actively preparing their own stablecoin projects. JPMorgan Chase CEO confirmed that it will further develop crypto payment businesses such as JPMorgan Chase Deposit Coin. On the same day, Citigroup CEO also revealed that the company is studying Citi Stablecoin. According to the Wall Street Journal, JPMorgan Chase, Bank of America, Citigroup and Wells Fargo had a joint coin issuance plan as early as May this year. At present, the total market value of global stablecoins has reached $258 billion, with an annual growth rate of 58%.

SharpLink holds over 270,000 ETH, becoming the worlds largest listed ETH holder

After purchasing 10,000 ETH from the ETH Foundation, SharpLink continued to increase its holdings significantly. On July 14, its total holdings increased to 270,000, surpassing the ETH Foundation for the first time and becoming the worlds largest publicly held ETH listed company. SharpLinks aggressive layout reflects the recognition of institutions for ETH as a strategic reserve asset, and also promotes the markets confidence in the long-term value of the ETH ecosystem.

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