2024 July Crypto Assets Market Review

Market Overview

In July 2024, the Crypto Assets market showed a positive trend, with significant improvements in the prices of Bitcoin and Ethereum as well as market sentiment. Investors continue to increase their holdings in Crypto Assets, and institutional participation has risen. The political landscape has also become more favorable towards the crypto industry, with several politicians expressing their support.

Bitcoin Performance

In July, the Bitcoin market was driven by multiple positive news. The University of Wyoming established a Bitcoin Research Institute, and a financial institution announced plans to engage in Bitcoin financing. Politicians also expressed support for the industry, including suggestions to relocate Bitcoin mining to the United States and to establish relevant advisory committees. One senator even proposed a bill to create a Bitcoin strategic reserve aimed at alleviating national debt issues.

Ethereum ETF Approved

On July 23, the Ethereum ETF was officially approved and began trading, with first-day performance exceeding expectations. Despite net inflows exceeding $100 million, there was a significant net outflow the following day, primarily due to large sell-offs from a certain Ethereum trust fund. Overall, ETH's performance outperformed market expectations, which may reflect investor optimism regarding future net inflows into ETFs.

Altcoin Market

In July, the performance of the altcoin market was mixed. Some coins such as MANTRA, HNT, JUP, and SOL achieved significant gains, mainly driven by positive news within their respective ecosystems. However, there were also some coins like FLR, FTM, and LDO that experienced price declines. It is worth noting that the monthly trading volume of decentralized exchanges reached an all-time high compared to centralized exchanges.

Macroeconomic Environment

In mid-July, the US stock market experienced a wave of sell-offs, but it can be seen as a natural adjustment from previous high levels. The Federal Reserve Chairman stated that no decision has been made regarding a possible interest rate cut in September and that economic data will be closely monitored. In China, a slight interest rate cut shows the government's cautious approach to stimulating the loan market while emphasizing the importance of technological innovation. Japan launched its first Crypto Assets ETF and raised interest rates for the first time in nearly 20 years, indicating a positive policy shift.

Industry Trends

A certain crypto assets trading platform is facing controversy for large donations to political action committees that may violate federal campaign finance laws, raising concerns about compliance within the crypto industry. This incident highlights the challenges crypto companies face in seeking a balance between political influence and regulatory compliance.

Outlook

As we enter August, the market is expected to continue exhibiting a situation of volatility and opportunities. The regulatory environment, institutional participation, and macroeconomic factors will continue to influence the direction of the Crypto Assets market. Investors should remain vigilant, closely monitor market dynamics, and conduct thorough research to make informed investment decisions.