Crypto market weekly review: Policy trends are friendly, BTC is expected to become a strategic reserve for the United States.

Macroeconomic Environment

Monetary policy is becoming more accommodative. The Federal Reserve hinted at a possible interest rate cut in September, ending the tightening cycle that began in early 2022. The market expects 2-3 rate cuts by the end of the year. Driven by this positive sentiment, U.S. stocks rebounded, and the crypto market maintained a wide range of fluctuations.

Market Overview

This week, Bitcoin fluctuated at a high level, with the U.S. government transferring $2 billion worth of Silk Road Bitcoin. The market focus is on the Solana ecosystem, with several projects experiencing explosive growth on-chain recently.

Projects worth paying attention to include:

1. BOME: As one of the few meme coins listed on a major exchange in the Solana ecosystem, it has a small market cap and an innovative concept, and is expected to become a leading player in the Solana concept.

2. NEIRO: As a meme coin that serves as an alternative to DOGE, it has surged hundreds of times in a week.

3. KAS: POW public chain, recently reached a historical high, market rumors suggest it will be listed on a certain large exchange's spot.

Bitcoin Analysis

on-chain data

Progress has been made in the compensation for creditors of a certain exchange. After a lengthy legal process, 60,000 BTC out of 140,000 BTC has been distributed to creditors by the exchange, and the remaining 80,000 BTC will also be distributed soon.

The market value of stablecoins remains stable, and the inflow of off-market funds has slowed down. The supply of the emerging algorithmic stablecoin USDE has rapidly exceeded 1 billion USD, mainly due to its staking yield of up to 60%.

The MVRV-Z Score indicator is currently at 2.0, which is in the middle stage. This indicator reflects the overall profit status of the market, with values greater than 6 indicating the top range and less than 2 indicating the bottom range.

Institutional funds have seen a net inflow for four consecutive weeks, but some existing investors have sold off after the launch of the ETH ETF.

futures market

The futures funding rate has risen this week, with a lot of long leverage, indicating that the short-term market may be nearing its peak.

The futures open interest has slightly decreased, indicating signs of withdrawal of main funds.

The futures long-short ratio is 2.2, reflecting that market sentiment is in a state of greed.

spot market

Bitcoin has been fluctuating at a high level this week, with a relatively sluggish summer market. A political figure's speech at the Bitcoin conference partially overdrawn the market's positive expectations. In the long run, the trend of widespread adoption of blockchain technology is irreversible.

Public Chain Ecosystem

This week's total locked value ( TVL ) is 88 billion USD, down 8.4 billion, a decrease of 8.2%. Except for Solana, the TVL of mainstream public chains has generally declined. Solana has performed the best, with a weekly increase of 6% and a monthly increase of 85%. The Ethereum ecosystem has shown weak performance, with a TVL decrease of 14%. Other major public chains such as Polygon, Optimism, and Arbitrum have seen declines ranging from 7% to 15%.

NFT market

This week, the NFT market continued to decline, reaching a one-year low. Trading volume has slightly rebounded. Blue-chip projects showed mixed performance, with CryptoPunks increasing by 7%, BAYC decreasing by 4%, and Azuki rising by nearly 3%. It is noteworthy that the trading activity of CryptoPunks has increased, showing signs of recovery.