Crypto Assets Market Weekly Report: BTC Faces Adjustment After Hitting All-Time High

Recently, the crypto assets market has experienced a strong surge, with the price of BTC breaking historical highs, reaching $112,000. However, as global financial markets face new challenges, crypto assets may also see a short-term adjustment.

Macroeconomic Situation

Recently, a major fiscal bill introduced by the U.S. government has raised concerns in the market regarding the U.S. debt issue. The bill could raise the U.S. debt ceiling to $41 trillion, approximately 140% of GDP. This move has led investors to question the U.S. government's ability to repay its debts, causing U.S. Treasury yields to climb to a high of 4.5%.

As a result, the US stock market has experienced a decline, with all three major indices showing downward trends. Meanwhile, the US dollar index has also ended its previous consecutive rise, falling by 1.03%. In this scenario of "stocks, bonds, and currency" all suffering, gold has once again become a safe-haven asset, with London gold rising by 1.98% over the week.

Crypto Assets Market Performance

Despite the pressures facing traditional financial markets, the crypto assets market has shown a certain level of resilience. Bitcoin has achieved a consecutive 7-week rise and set a historical high of $112,000. This strong performance is mainly attributed to several factors:

1. Bitcoin spot ETF funds continue to flow in
2. Some listed companies increase their holdings of BTC.
3. The U.S. Senate passes a stablecoin regulatory framework

From a technical perspective, the price of BTC is still in a medium-term upward trend. However, considering the recent significant increase and the external market environment, there may be a certain degree of adjustment in the short term.

Stablecoin Regulatory Progress

It is worth noting that the United States and Hong Kong have made significant progress in the regulation of stablecoins. The U.S. Senate has passed a regulatory framework for stablecoins, providing legal protection for the development of stablecoins. At the same time, the Hong Kong Legislative Council has also passed the "Stablecoin Regulation Draft", establishing a comprehensive licensing and regulatory framework.

These regulatory developments indicate that the application of blockchain technology in the financial sector is gradually gaining recognition from governments around the world, which has positive implications for the long-term development of the entire Crypto Assets industry.

Fund Flow Status

Despite the pressure on traditional financial markets, the inflow of funds into the Crypto Assets market remains strong. In the past week, a total of $5.574 billion flowed into the Crypto Assets market, including:

• Stablecoin: $2.548 billion
• Bitcoin Spot ETF: $2.775 billion
• Ethereum Spot ETF: $250 million

This indicates that investors still maintain a high enthusiasm for the Crypto Assets market.

Market Selling Pressure Analysis

As the price of BTC hits a new high, some long-term holders are beginning to take profits. Data shows that the inflow of BTC to exchanges this week reached 159869.37 coins, an increase compared to the previous weeks. However, the total amount of BTC on centralized exchanges is still declining, currently down to 2987307 coins.

Long-term holders have initiated small-scale reductions near the new highs, with a total reduction of 1195.43 coins over the week. This indicates that although there is some selling pressure in the market, the overall scale remains relatively small.

Summary

Currently, the Crypto Assets market is at a critical juncture. Although BTC has reached an all-time high, changes in the external environment may trigger a short-term adjustment. However, considering the ongoing capital inflows and the improvement in the regulatory environment, the long-term outlook for the Crypto Assets market remains positive. Investors should closely monitor the global economic situation and regulatory dynamics, adjusting their investment strategies in a timely manner.