Market Overview

Chart: https://www.gate.com/trade/BTC_USDT

In the past week, the cryptocurrency market saw a modest rebound, with leading assets like BTC and ETH recording gains of varying degrees. As of July 23, Bitcoin pulled back from near $120,000 to approximately $118,000. Meanwhile, Ethereum climbed to $3,720. The shift in sentiment reflects renewed risk appetite, with investors now focusing on institutional buying activity and regulatory developments.

Bitcoin Price Sets New High

Mid-July saw Bitcoin break through the key $120,000 psychological barrier, briefly surging to $123,200 and establishing a new all-time high. The rally was driven by:

• Cooling U.S. inflation: The Federal Reserve may shift more quickly to an accommodative policy stance, which supports stronger risk-taking in the market.
• Continued net inflows into Bitcoin ETFs: Glassnode reports that Bitcoin ETFs attracted over $320 million in net inflows last week, a clear signal of sustained institutional demand for spot BTC exposure.
• Decreasing Bitcoin balances on exchanges: This trend indicates users are moving assets to cold storage (self-custody), preferring to hold for the long term.

Institutional Holdings of Ethereum Surge

SharpLink Gaming recently acquired 79,900 ETH via over-the-counter transactions, a purchase valued at over $258 million. This brings the firm’s total ETH holdings to 360,000. It is the largest position on record for the firm. This move demonstrates two trends:

1. Institutions are deepening their commitment to the Web3 sector, especially DeFi and gaming verticals.
2. ETH is increasingly viewed as a platform token considered an asset class suitable for inclusion in long-term strategic portfolios.

ETH’s expanding role in Layer 2 scaling ecosystems, such as Optimism and Arbitrum, also reinforces its status as a core infrastructure asset in the blockchain space.

Investor Sentiment Rebounds: Is the Bull Market Back?

While the overall market has not yet entered a full-blown “frenzy” phase, data points to growing enthusiasm:

• The Fear & Greed Index has climbed to 72 (Greed), marking its highest reading in the past three months.
• Open interest in high-strike BTC options on Deribit continues to rise, with traders expecting further upside through year-end.

These indicators suggest increasing optimism among market participants about another bullish cycle in the coming months.

Risk Warning and Trading Recommendations

For newcomers, despite improving market sentiment, it is inadvisable to blindly chase rallies. The following best practices are recommended:

1. Accumulate positions in major cryptocurrencies in stages, prioritizing BTC and ETH allocations.
2. Closely monitor macro policy changes, particularly actions from the Federal Reserve and evolving stablecoin regulations.
3. Establish stop-losses to manage risk. This will help prevent short-term volatility from undermining your portfolio.