Last week (July 8-July 14), BTC hit a new high, breaking through the $120,000 mark, and the weekly inflow of ETH spot ETF exceeded $900 million, setting a new record. On July 10, the positive policy signals catalyzed market sentiment, and the BTC price rose all the way to around $118,000 for consolidation. On July 14, driven by institutional funds, BTC set a new historical high, reaching a short-term high of $123,218, with a maximum increase of 13.56% during the week. Currently, the BTC price has fallen back to around $117,000. ETH showed an M-shaped upward trend last week, breaking through $3,000 several times, with a maximum increase of 22.73% during the week (Binance spot, July 15, 17:22).
Market Interpretation
BTC breaks through $123,000, driven by favorable policies and risk aversion demand
BTC price hit a new high recently, breaking through $120,000, reaching a maximum of $123,218, with a total market value of $2.36 trillion. The daily line shows an obvious bullish trend, with increased trading volume and active market participation. This round of rise was boosted by policy signals such as Shanghais promotion of blockchain infrastructure, and market sentiment has warmed up. At the same time, the daily net inflow of US spot BTC ETF reached $1.176 billion, a record high in nearly three months, indicating that institutional funds continue to enter the market. MicroStrategy, Marathon Digital and other companies continue to increase their holdings of BTC, and the digital gold narrative is strengthened.
At the global level, the demand for BTC as a safe haven has increased under the expectation of tariffs and inflation. Although blockchain applications are driven by policies, high leverage and regulatory uncertainty still exist, and we need to be vigilant against short-term adjustments and market fluctuations. Overall, BTC is consolidating at a high level, and we will pay attention to policy dynamics and capital flows in the future.
The altcoin sector is recovering, and capital and policy expectations drive the structural market
On July 10, BTC broke through $120,000 for the first time. More than 90% of the top 200 altcoins by market value rose, HBAR and SUI rose by 25% and 12% respectively, and mainstream coins such as ETH, SOL, BNB, and XRP also strengthened. Although BTC continued to set new highs, the overall market sentiment was relatively rational, FOMO was significantly reduced, and investors attention gradually shifted to the altcoin sector.
Although altcoins have generally rebounded, the overall increase has not met expectations, and the trend differentiation between ETH and BTC is still obvious. With the increase in expectations for ETF approval and improved liquidity, altcoins are expected to usher in a rebound. The real altcoin season may need to wait for the Feds interest rate cut to take effect, and August-September may be the key window.
USDT and USDC supply hit new highs, signaling incremental market liquidity
Recently, the supply of Tether (USDT) and Circle (USDC) has hit record highs. Since July, the market value of USDC has increased by $1.3 billion to $62.8 billion, and the market value of USDT has increased by $1.4 billion to nearly $160 billion. As a core liquidity tool in the crypto market, the expansion of stablecoins is usually regarded as an important signal of new capital entering the market. This round of BTC and mainstream currency rebound is highly synchronized with the continued growth of the total amount of stablecoins, reflecting that the exchange funds are sufficient and the market risk appetite has recovered.
Market Hotspots
The Genius Act was passed by the Senate, and stablecoin regulation has reached a critical turning point
On July 12, the U.S. Senate passed the Genius Act, which attracted widespread attention from the banking and legal circles. The bill stipulates that stablecoin holders have priority claims in the event of bankruptcy, that stablecoins must be 100% backed by highly liquid assets (such as U.S. Treasuries), and that issuers must disclose reserves monthly and have a freezing function. The bill is designed to enhance user confidence and compliance thresholds, and strengthen the linkage between stablecoins and traditional finance. The bill is currently awaiting review by the House of Representatives. If it is successfully implemented, it may become a watershed in the compliance of stablecoins and the evolution of the industry landscape.
Hong Kong and South Korea cooperate to promote stablecoin regulation and promote stablecoin regulation standardization
On August 1, the Hong Kong Stablecoin Ordinance will officially take effect, requiring issuers to have 1:1 reserves, regular audits, and license management. South Korea has paid close attention to this, and the two sides have discussed the application scenarios of stablecoins pegged to fiat currencies such as the Hong Kong dollar and the Korean won, and put forward multilateral cooperation initiatives. Currently, Hong Kong has attracted more than 40 companies to apply for relevant licenses, and regional collaboration in Asia is expected to further promote the healthy development of the digital asset market.
Disclaimer: The above content does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offers or solicitations may be prohibited by law. Digital asset trading may be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
