The cryptocurrency market has seen a 1.03% increase in the past 24 hours, continuing an upward trend over the past 30 days of +19.5%. The main factors behind this move are:
Ethereum momentum – 310,000 ETH (worth $1.15 billion) was withdrawn from trading platforms, coinciding with the 10th anniversary celebrations.
Institutional catalysts – Trump's proposal to create a strategic reserve of Bitcoin raises expectations for a price of $1 million for BTC.
Change in overall sentiment – the altcoin season index rose by 126% month-over-month despite Bitcoin's dominance at 60.34%.
Detailed analysis
1. Ethereum network activity (positive impact)
Overview: Ethereum regained the $3800 level amid 10th anniversary celebrations (July 30 event) and a record outflow of $1.15 billion worth of ETH from trading platforms over 72 hours. On-chain data shows an address linked to DeFiance Capital accumulating 30,400 ETH, indicating institutional accumulation.
What it means: Reduced supply on exchanges (+32% increase in staked ETH annually) creates a scarcity condition. The correlation between ETH and the QQQ index has also fallen to -0.58 over 30 days, indicating a decoupling from tech stocks.
What to watch: Details of the Ethereum protocol upgrade during the anniversary event – scalability improvements may support continued gains.
2. The U.S. strategic reserve of Bitcoin (positive impact)
Overview: Trump's executive order to create a Bitcoin reserve and Cathie Wood's prediction of a $1 million BTC price (Bitcoinist) have driven institutional positioning. Bitcoin exchange-traded fund assets reached $152.14 billion (+12% month-over-month).
What it means: Narratives around corporate treasury adoption of Bitcoin have increased, as Swan analysts have laid out a 4-stage absorption model targeting 1 million BTC.
What to watch: The August 1 deadline for public feedback on the reserve implementation framework.
3. Reset of the derivatives market (mixed impact)
Overview: Total open interest in the cryptocurrency market has decreased by 4.61% to $617 billion, with BTC liquidations down by 86.9% to $7.6 million. Funding rates have stabilized at +0.0094%.
What it means: Lower leverage (open interest at a 16-month low) reduces systemic risks, but spot trading volume has decreased by 25% – indicating weak participation from retail investors in the rally.
Summary
The market is currently driven by supply scarcity mechanisms in Ethereum and narratives of institutional Bitcoin accumulation, although weak liquidity over the weekend increases price volatility. Traders should monitor whether Ethereum's 10th anniversary celebrations will lead to a 'sell the news' reaction, and if BTC can maintain support at $118,000 after Trump's policy updates.
Will Ethereum's layer 2 systems benefit from the momentum of its anniversary to reverse Bitcoin's dominance?
#etherreum #AmericaAIActionPlan #coldera @Caldera Official #colderaxy
