Geopolitical situation is turbulent, the crypto market is experiencing fluctuations and adjustments, BTC is performing better than alts.

Under the turmoil of global geopolitical situation, the Crypto Assets market is experiencing fluctuations and adjustments

Recently, the global geopolitical situation has become tense, triggering a brief risk-averse sentiment in the market. The Crypto Assets market is showing an overall trend of fluctuation and adjustment, with mainstream coins exhibiting divergent trends, while altcoins have stopped rising and are retreating.

On the funding side, although there has been some warming, the momentum is insufficient. According to certain data, the net inflow of Crypto Assets ETFs this week was $1.02 billion, but the growth rate has slowed down. The growth rate of stablecoin issuance has also receded, and market funds are maintaining a cautious wait-and-see attitude.

Bitcoin encountered resistance and pulled back after a rally, while Ethereum initially followed suit but lacked momentum. Some institutional investors continue to increase their holdings in Bitcoin, showing confidence in the long-term outlook. The overall market structure remains neutral to strong.

In terms of alternative coins, although liquidity has improved, the upward momentum has been hindered. The TOTAL2 index rebounded before falling again, and the market share of OTHERS has stopped declining and is fluctuating. The on-chain prosperity index is reported at 53, indicating that alternative coins have not yet escaped weakness.

Analysts believe that the current market is at the end of the consolidation phase. In the short term, attention should be paid to the breakthrough situation of the capital flow, and patiently wait for signs of altcoin structure strengthening and the return of funds to mainstream coins.

On a macro level, although the conflict between Israel and Iran has caused short-term fluctuations, the market's concerns about the outbreak of a full-scale war are limited. The probability of a rate cut by the Federal Reserve in July has increased, but inflation and economic balance remain key considerations.

On-chain data shows that the supply of Bitcoin held by long-term holders has reached a nearly six-month high, reflecting an increase in confidence among long-term investors. The supply from short-term holders has decreased, indicating a reduction in selling pressure.

From a technical perspective, Bitcoin is currently at a critical position. If the funding situation improves, it may welcome a rebound and maintain high-level fluctuations. However, if funds continue to flow out, it may break key support levels and form a double top pattern, which would pose pressure on the market outlook.

Overall, the current market still requires a cautiously optimistic attitude. Investors should closely monitor changes in the global situation, regulatory trends, and capital flows, and manage risks appropriately.