Federal Reserve Chairman Powell's dovish speech at the Jackson Hole meeting sent the cryptocurrency market into a frenzy. Bitcoin surged to $117,400, and Ethereum broke through $4,800 to reach a multi-year high, with market expectations for a rate cut in September soaring to 90%, signaling a new wave of upward momentum.
Mainstream coins are leading strongly, with bullish sentiment among institutions rising.
Powell clearly stated in his speech that the risks of a downturn in the labor market are rising, and the current restrictive interest rate policy may need to be adjusted. This signal is interpreted by the market as a prelude to interest rate cuts, driving a comprehensive rebound in risk assets. #Ethereum's performance is particularly striking, with a nearly 10% increase in 24 hours. Deribit options data shows a surge in demand for its call options, and risk reversal indicators for all durations are positive, indicating the market's confidence in a breakout above $5,000.
Asset management institutions are generally optimistic about the subsequent trend. Sam Gaer, Chief Investment Officer of Monarq Fund, pointed out that Ethereum benefits not only from macro liquidity easing but also from sustained institutional backing— in July, the weekly net inflow into ETH spot ETFs exceeded $1.5 billion, and enthusiasm among listed companies for increasing their holdings remains strong, with companies like BitMine becoming 'super treasury' holders of ETH. Although Bitcoin is slightly weaker, whale holdings around $113,000 show strong support, and analysts believe its historical high is within reach.
Risk lurking: concerns over DAT bubbles and altcoin differentiation.
The risks behind the boom cannot be ignored. The decline in the trading quality of digital asset treasury bonds (#DAT) has raised concerns, and the actions of enterprises associated with the Trump family, which inflate token valuations through complex transactions, have been criticized by industry insiders as 'self-serving trades dressed in capital clothing'. Currently, over 100 listed companies have collectively held nearly 1 million Bitcoins, but the high-leverage holdings of some small-cap companies may become the catalyst for market volatility.
Popular altcoins show significant differentiation.
Cardano (#ADA) has fallen 7.55% in the past week, fluctuating in the range of $0.81-$1.07, with technical indicators showing fierce long and short battles.
Ripple (#XRP) has seen a monthly decline of 19.35%, with $3.49 becoming a key resistance level, and market sentiment remains cautious. The transfer of Ethereum whale funds has prompted investors to seek the next potential target.
New hotspot emerging: sports #meme coins become the new darling of funds.
As mainstream coins fluctuate at high levels, the new face #XYZVerse ($XYZ) emerges with the concept of sports + GameFi. The token presale has raised over 15 million dollars, with the price rising from $0.0001 to $0.005, and the next phase will increase to $0.01.
Its unique community incentive mechanism and large-scale airdrop plan have attracted many high-yield-seeking investors, but industry insiders warn to be wary of the common speculation risks associated with meme coins.
As the Federal Reserve's interest rate cut window approaches, the crypto market is at a crossroads of opportunity and risk. Analysts suggest focusing on two key signals:
First, whether the flow of funds into ETH ETFs can be sustained.
Secondly, whether changes in DAT holdings trigger selling pressure.
For ordinary investors, while chasing new highs, it is crucial to remain rational and be wary of traps amidst market volatility.
