Review of the Crypto Assets Market in July 2024

Market Overview

July was a month of significant volatility for the Crypto Assets market, with notable improvements in the prices of Bitcoin and Ethereum as well as market sentiment. Investors continued to accumulate Crypto Assets, and several institutions showed interest in this field. There were also some positive signals on the political front, including support from some political figures for the industry.

Bitcoin Performance

In July, the Bitcoin market showed a positive trend. The University of Wyoming established a Bitcoin Research Institute, and a financial institution announced plans to launch Bitcoin financing services. Politicians reiterated their support for the industry at a Bitcoin conference and proposed several suggestions beneficial to the industry's development. Additionally, some lawmakers proposed a bill to establish a Bitcoin strategic reserve aimed at reducing US debt.

Ethereum Development

At the end of July, Ethereum welcomed an important milestone with the approval and commencement of trading for the Ethereum ETF. The performance on the first day exceeded expectations, with net inflows surpassing 100 million USD and total trading volume exceeding 1.1 billion USD. Although there was some pullback on the second day, overall, the performance of ETH was better than expected, driving price increases and improving market sentiment.

Altcoin Market

The performance of the altcoin market in July was mixed. Some tokens such as $MANTRA, $HNT, $JUP, and $SOL saw significant increases, while $FLR, $FTM, and $LDO experienced price declines. It is worth noting that the monthly trading volume of decentralized exchanges reached a historical high compared to centralized exchanges, a trend that is worth paying attention to.

Macroeconomic Environment

The stock market experienced a significant adjustment in mid-July, with the S&P 500 and Nasdaq retreating after strong gains at the beginning of the month. The Federal Reserve Chair stated that no decision has been made regarding a possible interest rate cut in September and will continue to closely monitor economic data. On the Chinese side, the recent slight interest rate cut and a shift in policy focus show an emphasis on "quality growth."

Industry Trends

A large Crypto Assets exchange may face legal risks due to large donations to political action committees, raising concerns about compliance issues in the Crypto Assets industry. Japan will launch its first Crypto Assets ETF, providing investors with a new avenue for digital asset investment. Meanwhile, the Bank of Japan has raised interest rates for the first time in nearly 20 years, indicating a shift in monetary policy.

Outlook

Looking ahead, the Crypto Assets market is expected to remain volatile, but it also contains opportunities. Changes in the regulatory environment, increased institutional participation, and the introduction of new financial products may all significantly impact the market. Investors should closely monitor these factors and make investment decisions based on their own risk tolerance.