Exclusive interpretation of the market on August 4, 2025
While the US stock market rests in the tranquility of the weekend, the cryptocurrency market seems to be under a spell, rippling with layers of waves, starting a thrilling downward journey. This operation resembles an early 'warming up' for the inertia decline of the US stock market after it opens, and also exposes the 'true culprit' behind the crypto market crash — US stock players, especially the deep 'disturbance' of American capital.
In the dark hours of the early morning, the price of Ethereum plunged below 3400 USD, refreshing the lowest record in nearly two weeks. Bitcoin also did not show weakness, plummeting to a low of 112,000 USD. This not only easily broke the previous week's low for Bitcoin's correction but also approached a critical defense line — the 110,000 USD level. 110,000 USD is not just a simple number game; it is the price level that Bitcoin successfully broke through after countless difficult tug-of-war battles. Once broken, it transforms into the 'guardian' of the new price range, unbreakable and of extremely high strategic value.
To explore the root cause of Bitcoin's current decline, the 'butterfly effect' of the US stock market can be said to be the culprit. I had previously firmly believed that for the thriving Ethereum, Bitcoin did not need to climb to the peak of 120,000 USD, but only needed to stabilize and consolidate to hold its ground. However, reality has slapped me hard in the face. But, looking at it from another angle, after the US stock market closes for the weekend, it might just catch its breath. Meanwhile, Bitcoin's stubborn defense of the crucial 110,000 USD level subtly reveals the complex emotional changes in the US stock market at a critical moment.
In this wave of decline, many investors are sweating over the future of Bitcoin, but Ethereum has caught my attention in a different way. Although it has fallen from its peak with a maximum drop of 15%, to me, this is just normal market 'breathing.' Looking back at Ethereum's previous rise, the growth was rapid like fire cooking oil, accumulating mountains of profit. Now, a moderate correction is like a timely rain, washing away the restless bubbles and paving a more solid foundation for future rises. More importantly, from the trend of the Ethereum-to-Bitcoin exchange rate, it has not created a new low, which clearly tells us that Ethereum is still the 'dominant force' in the cryptocurrency market, steady as a mountain, with limitless glory.
