Kronos: Watching Bitcoin rebound! 'Cautious optimism' Macro market awaits good regulatory news

U.S. non-farm data triggered a sharp drop in Bitcoin, which quickly rebounded. Kronos Research CIO Vincent Liu pointed out that the market is in a state of 'cautious optimism,' with institutions buying on dips and the SEC's new regulatory plans being important drivers. (Background: Bitcoin ETF experienced the largest net outflow in six months, BTC briefly fell below 112,000, and Ethereum dropped below 3,400 USD) (Additional context: Bloodbath! Bitcoin fell below 113,000 USD, and Ethereum lost 3,500 USD, with a total liquidation of 1 billion USD across the network) U.S. July non-farm employment data came in below expectations, causing a short-term downturn in Bitcoin. However, within less than a week, the price rebounded to the 115,000 USD mark, driving Ethereum, XRP, and Solana to surge in tandem. The market has played out this rise and fall scenario again, but this time, the underlying drivers are not just sentiment but structural changes that are gradually taking place. Institutions are stepping in to support, and buying on dips is quickly emerging. Data shows that Bitcoin first slid from around 119,000 USD to 111,800 USD, then rebounded to 114,738 USD, with a 24-hour increase of 1.22%. According to a report from The Block, BTSE's COO Jeff Mei stated that long-term funds are 'buying on dips' during each pullback, and with traditional institutions laying out plans for crypto business, he expects monthly prices to still have upward potential. Vincent Liu: Three key clues support 'cautious optimism' Kronos Research's Chief Investment Officer Vincent Liu defined the current situation as 'cautious optimism.' In an interview, he stated: The trend is biased towards bullishness, but profit-taking pressure and macro variables cannot be ignored. Investors must remain flexible. He pointed out that the decline of altcoins at the end of July was not an isolated event but a result of a 'cascade liquidation' and 'liquidity dilution' dual attack, reminding that market fragility still exists. Furthermore, the flow of funds has changed, with Ethereum spot ETFs seeing an inflow of 533 million USD in a single day, reflecting that institutions are shifting some Bitcoin positions towards Ethereum. The fear and greed index is moving towards 'neutral leaning towards greed,' coupled with whale buying and expectations of interest rate cuts, risk appetite is recovering. Even so, Vincent emphasized that the current optimism may not be sustained, with the CPI announced on August 12 and the September FOMC being variables. The SEC's Project Crypto: Bringing RWA imagination Regulatory aspects are also influencing sentiment. In April of this year, SEC Chairman Paul Atkins launched 'Project Crypto,' which aims to establish clear regulations for DeFi and reduce reliance on old enforcement practices. The SEC intends to protect developers who 'only write code' and reduce compliance concerns, allowing tokenized securities to be legally traded on-chain in the future. Vincent Liu believes that policy transparency helps reduce uncertainty and brings greater liquidity to DeFi. He stated: Although regulations are strict, the road signs are clear, which actually encourages capital to invest long-term. Related reports: One-click interaction to 'one-click liquidation,' the deadly traps brought by DeFi convenience. Liquidation eight times in a week! Trader qwatio suffered a loss of 12.5 million USD; what mistakes did he make? "Kronos: Watching Bitcoin rebound! 'Cautious optimism' Macro market awaits good regulatory news" was first published in BlockTempo (BlockTempo - the most influential blockchain news media).