Market Sentiment
The current Fear & Greed index is at 60, indicating a greedy level. This index reflects that investor sentiment leans optimistic, primarily driven by continuous institutional funds flowing into Bitcoin and Ethereum ETFs, as well as a surge in global liquidity expectations in the fourth quarter. However, uncertainty surrounding potential Federal Reserve rate cuts due to high inflation data has slightly dampened excessive enthusiasm, resulting in a drop in the index from the previous day, but the overall market maintains a positive momentum, avoiding panic dominance.
Market Overview
The current price of Bitcoin is $118,590.93, with a 24-hour decline of 3.19%, primarily driven by a 0.9% increase in US wholesale prices in July that exceeded expectations, weakening the likelihood of a Federal Reserve rate cut in September, leading to rising US bond yields and triggering short-term selling pressure. The current price of Ethereum is $4,532.42, with a 24-hour decline of 5.41%, with volatility stemming from a hacker's panic selling of 4,958 ETH exacerbating market downturns, but the two whales buying over $150 million in ETH provided some support.
On-chain Focus
In the past 24 hours, two whale addresses have purchased a total of $150 million in ETH (approximately 32,300 coins) from FalconX and Galaxy Digital OTC, continuing to buy the dip; a hacker address '0x17E0' sold 4,958 ETH (worth $22.13 million), locking in a profit of $9.75 million; a newly created wallet withdrew 53,434 ETH (worth $244 million) from Kraken. These movements validate market differentiation, with buying the dip dominating and alleviating selling pressure.
Institutional Trends
The US spot Bitcoin ETF saw a net inflow of $230.55 million yesterday, with BlackRock's IBIT significantly contributing; the Ethereum ETF had a net inflow of $639.74 million, with BlackRock's version dominating at $519.81 million. These fund flows directly enhance market liquidity, alleviate short-term downward pressure, and drive Bitcoin and Ethereum prices to rebound from lows, but if outflows intensify, volatility may increase.
Regulation and Macroeconomics
The chairman of the US SEC will speak tonight on Project Crypto, promoting the modernization of securities regulations and the financial chain; the FBI warns of fake law firms targeting cryptocurrency victims for secondary scams; US wholesale prices rose by 0.9% in July, and the probability of a Federal Reserve rate cut in September has dropped to 92.1%. These events directly increase short-term uncertainty, reinforcing risk-averse sentiment, but Project Crypto may boost institutional confidence and promote a rebound in the fourth quarter.
