The ETP market demonstrated strong vitality in August. Globally, numerous investors have poured funds into ETP products related to Ethereum and mainstream altcoins. Taking the European market as an example, local ETP products attracted significant net inflows of funds, flooding into the fields of Ethereum and mainstream altcoins like a surging tide. This not only provides ample liquidity for these digital currencies but also greatly enhances market confidence in them. Some ETP products tracking Ethereum achieved substantial growth in assets within just one month, with an increase as high as [X]%, fully demonstrating the market's strong optimism towards Ethereum.
Meanwhile, the improvement in market risk appetite has also contributed to the shift of funds. As the global macroeconomic situation gradually warms up and governments clarify their regulatory policies on cryptocurrencies, investors' risk appetite has significantly increased. They are no longer solely focused on Bitcoin, the traditional cryptocurrency giant, but are actively seeking other investment opportunities with greater potential. Ethereum, with its wide applications in smart contracts, decentralized finance (DeFi), and its continuously upgraded technical architecture, has become highly sought after by many investors. Mainstream altcoins, such as Ripple (XRP) and Litecoin (LTC), also attract significant inflows of funds due to their unique technical characteristics and market positioning.
As September begins, the seasonal characteristics of the cryptocurrency market start to emerge, and market volatility continues to intensify. Historical data shows that September is often a period of frequent fluctuations in the cryptocurrency market. However, beneath the seemingly turbulent surface of the market, there are subtle changes hidden — signs of seller fatigue are increasingly apparent. Through in-depth analysis of trading volume and positions data from major cryptocurrency exchanges, it can be observed that the selling pressure from sellers is gradually weakening. Taking Bitcoin as an example, its average daily selling volume in early September has decreased by [X]% compared to the same period in August. At the same time, a series of positive macroeconomic factors have emerged. The GDP growth rates of major global economies have exceeded expectations, unemployment rates continue to decline, and consumer confidence indices are steadily rising. These positive macroeconomic signals provide a solid foundation for the stable development of the cryptocurrency market and lay the groundwork for market stabilization in the fourth quarter.
Despite recent profit-taking in the market and an overall neutral market sentiment, a closer observation of the dynamics of various wallet groups reveals strong signs of accumulation. The holdings of Ethereum and mainstream altcoins continue to rise in the wallet addresses of large institutional investors. For instance, a well-known hedge fund significantly increased its Ethereum holdings in mid-September, with its position increasing by [X]% compared to the beginning of the month. At the same time, retail investors are also active, purchasing Ethereum and mainstream altcoins through various cryptocurrency exchanges. Additionally, the ongoing adoption of cryptocurrencies in corporate fund management is noteworthy. More and more companies are starting to include digital currencies like Ethereum in their fund management portfolios for purposes such as cross-border payments and asset reserves. This trend not only reflects the gradual popularity of cryptocurrencies in the corporate sector but also indicates strong underlying demand.
Looking ahead, although the cryptocurrency market still faces certain short-term downward risks, such as further tightening of regulatory policies and sudden changes in market liquidity, from a valuation perspective, the current prices of Ethereum and mainstream altcoins still have considerable upside potential relative to their intrinsic value. For Ethereum, for example, its current market capitalization is significantly undervalued compared to the development potential of its application ecosystem. Coupled with the continuous improvement of the macro environment, including stable growth in the global economy and ongoing monetary policy easing, it can be reasonably speculated that the current bull market cycle is unlikely to peak by 2025, which could potentially break the historical four-year halving pattern of the cryptocurrency market. In the future market development, Ethereum and mainstream altcoins are expected to continue their strong growth momentum, bringing more surprises to investors.
