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The crypto market has fluctuated violently over the past week due to the massive sell-off of Bitcoin’s ancient giant whales.The market focus is on the sale of 80,000 BTCs represented by the bulk trading service provider Galaxy Digital.According to on-chain analyst Ember Monitor, as of July 26, Galaxy Digital has sold 37,545 BTC through the secondary market and disposed of 42,400 through over-the-counter trading (OTC), completing a total of nearly $9 billion in Bitcoin distribution.
It is worth noting thatThe German government’s selling of 49,858 bitcoins in 2024 triggered a market fluctuation for several months, with the largest drop of 32% during the period.The concentrated sale of 80,000 Bitcoins in the ancient giant whale only caused the currency price to fall briefly by 3%, and the market response was significantly more moderate, which shows that the current market acceptance has significantly improved compared with one year ago.
However, although there is little possibility of Bitcoin’s continuous sharp decline in the short term, due to the rapid rise of this round, Bitcoin’s chip exchange in the 11K-11.7K area is not sufficient, resulting in the market facing greater pressure to cash out profits.Therefore, after hitting a record high, Bitcoin still has a demand for consolidation to fluctuate below 117,000 in the short term.
During the period when Bitcoin fell into volatile situations, Ethereum became the direction for market capital to break through.Bitwise data shows thatFrom mid-May to the present, ETP and listed companies have increased their holdings by 2.83 million ETH, reaching 32 times the new supply during the same period.It is worth noting that the competition among listed companies for the title of “Ethereum Micro Strategy” has entered a white-hot stage: 1) Sharplink Gaming Inc plans to raise up to US$5 billion through the issuance of additional common shares to expand the ETH treasury; 2) Bit Digital will increase its authorized share issuance from 340 million shares to 1 billion shares, and plans to raise US$1 billion to increase its holdings in ETH; 3) New player BTCS Inc has raised its financing target from US$56 million to US$225 million.Given that the scale of ETH reserves of various companies has not yet opened up, this competition will continue to heat up, thereby building a solid buying support for Ethereum.Therefore, it is probably a foregone conclusion that Ethereum broke through $4,000 this week!
After Bitcoin and Ethereum made breakthroughs one after another, the market generally had a “guaranteed expectation for altcoins:” to replicate the end carnival in March 2024 or August 2024.However, the performance of altcoins in this round of market has always been unsatisfactory. Not only did they continue to stagflation during the upward phase, but they were also seriously oversold during the correction phase, and their performance was extremely collapsed.This has led to many altcoin holders losing confidence in the altcoin rebound.
In fact,The interpretation of every bull market in history is extremely complicated, and almost all investors cannot make money while lying down.Taking November 2020 as an example: When Bitcoin broke through a record high, the DeFi sector encountered the most severe test since its birth – UNI once fell to $1.75, plunging by more than 80% from the opening price.However, dramatic, as Bitcoin entered a sideways consolidation in December, UNI started an epic rebound, achieving an epic rebound from $1.75 to $1.75 in just five monthsThe gain of nearly 26 times for $45.Therefore, it is far more important to accurately grasp the rhythm of market rotation than simply judging bull and bear.
In a bull market, although Bitcoin and altcoins will always converge at a certain point in differentiation,The switching of the market style usually does not smoothly transition.The root cause is that the difference in risk appetite and investment strategies leads to obvious boundaries in funds tracking Bitcoin and tracking altcoins.ThisStructural differences often require severe oscillation to complete the chip reconstruction: Bitcoin’s rising momentum is declining, the valuation of altcoins is extremely compressed, and speculative funds follow the trend to complete the high and low switching.Before the market style switches, the market’s tear may even intensify further.This is also the reason why we always emphasize that bull markets should not fight against trends and bets on the left side.
Since last week, favorable conditions for capital to turn to altcoins have begun to appear. There are two main reasons: First, the above mentionedArrived,Chips accelerate reconstruction amid violent fluctuations; Second, the leaders of the sector began to emerge.For example, PENGU completed a tenfold increase last week and led to a 36% rebound in the entire median NFT blue chip.If ten times coins appear one after another, thenThe altcoin rebound market will come naturally.
To a certain extent, this “twistful pattern” is exactlyIt confirms that the market is still in a healthy bull market.In the market environment close to the stock game, every concentrated release of bullish sentiment is accompanied by the rapid accumulation of stock positions, and the large consumption of stock liquidity also means the exhaustion of the momentum of stock increase.
According to Coinglass data,The daily transaction peaked at US$600 billion when the crypto market peaked in November 2021 (3.2 trillion total market value).In contrast, the current total market value of US$4 trillion matches the average daily trading volume of US$200-300 billion.Instead, it indicatesThe rise is still in a steady progress.Stay patient and wait for the main upward wave to arrive!
