The Connection Between U.S. Politics and the Crypto Market Sparks New Waves! On July 25, Trump made a high-profile visit to the Federal Reserve and engaged in 'interest rate discussions' with Chairman Powell, stating that 'there's no need for such a loud firing.' This heavyweight dialogue between politics and business surprisingly led to a subtle turnaround for Ethereum, which was in a downtrend—technical indicators show oversold signals, and institutional funds are flowing. This article deeply analyzes the three key impacts behind the event and teaches you how to seize potential opportunities!
I. Political and Business Giants Break the Ice: The crypto market gains reassurance.
No Tense Atmosphere, Only Interest Rate Discussions: Trump's remarks during his visit to the Federal Reserve directly dispel speculation about 'discord between the White House and the Fed.' Although he did not directly mention cryptocurrencies, Powell sent a heavy signal while responding to reporters' questions.
1. Banks Can Comply to Participate in Crypto Services: It is clearly stated that as long as regulation is in place, it is feasible for banks to provide services to crypto investors. This is the second time this year that the Federal Reserve Chairman has expressed an open attitude towards the crypto market.
2. Acknowledgment of Bitcoin's Innovative Value: Reiterating that 'BTC is an innovative investment, and the U.S. should encourage it,' indirectly boosting confidence across the entire crypto sector.
Market Reaction: ETH briefly halted its decline after the news was released, with a liquidation volume of $702 million in 24 hours, but the proportion of long positions significantly increased, indicating a stronger willingness to bottom fish.
II. Technical Analysis Holds Secrets: ETH May Welcome a 'Golden Pit'
As of July 25 at 10 AM, ETH is priced at $3671, down 3.19% in 24 hours, but the three major technical indicators are simultaneously signaling a rebound.
RSI Oversold Warning: The value has dropped to 29.18, entering the 'oversold zone.' Historical experience shows that the probability of a rebound in the next 72 hours exceeds 60%.
KDJ Golden Cross Appears: The K line crosses above the D line, marking the first buy signal after the death cross.
MACD Volume Contraction: The histogram remains in negative territory but shortens in length, indicating a weakening of bearish strength.
Institutional Trends: CoinShares data shows that last week, Ethereum ETF had a net inflow of $120 million, with institutions like Grayscale and Bitwise continuously increasing their positions, suggesting a layout logic that 'a dip is an opportunity.'
III. Three Major Events Linked: July is a decisive moment for the crypto market
SOL ETF Approval Countdown: On July 31, alongside the Federal Reserve's interest rate decision, Solana ETF may be approved. Historical experience shows that the approval of leading altcoins can drive ETH and other mainstream coins up by 15%-30%.
UK Stablecoin New Regulations Take Effect: The FCA's stablecoin regulation proposal deadline is July 31. Compliant stablecoins may become a 'bridge' for institutional entry, indirectly benefiting the ETH ecosystem.
Trump's Policy Dividends Ferment: The White House plans to promote the (GENIUS Act). If crypto-friendly policies are implemented, ETH, as the leader in smart contracts, will benefit first.
IV. She Chang's Personal Viewpoint
Batch Positioning Strategy: Around $3596, lay out 30% of the position, increase by 20% at $3569, and set a stop loss at $3550.
Pay Attention to ETH/BTC Ratio: The current ratio is 0.097; if it breaks through 0.102, it can be considered a strong signal.
Lock in Layer 2 Dividends: Tokens from Ethereum sidechain projects like Arbitrum and zkSync may become a safe haven for funds.
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