The main reason for ETH's plummet last night
Policy and Regulatory Impact
The U.S. 'Genius Act' is enacted: Trump signs the first federal
cryptocurrency
legislation, which establishes the legal status of stablecoins but raises market concerns about policy uncertainty due to strict regulatory frameworks (such as the 1:1 dollar reserve requirement).
Hungary's criminal crackdown on crypto trading: New regulations impose prison sentences on unlicensed traders, increasing risk-averse sentiment among European investors.
Macroeconomic Headwinds
Expectations of Fed rate cuts rise: Governor Waller calls for an 'immediate 25 basis point cut,' raising concerns about an economic recession and leading to a sell-off of risk assets.
Future Development Expectations
The U.S. 'Genius Act' may prompt global regulatory follow-up, with compliant platforms like Coinbase and Circle attracting more capital.
Bitcoin's Lightning Network and Ethereum staking upgrades enhance usability, and traditional financial institutions (such as Standard Chartered) continue to enter the market.
This drop is the result of a resonance of policy, capital, and technical factors; short-term volatility is expected to increase, but the long-term trend remains unchanged. Expectations of Old Powell's departure along with expectations from Jiangxi indicate a significant market movement expected between August and September.
