Ethereum Leads Crypto Market Rebound, Multiple Favourable Information Catalyze Market Heating Up

Recently, the crypto market has experienced a strong rebound, with Ethereum standing out in particular. The price of ETH has broken through the $4000 mark, reaching a new high of 45 months, currently reported at $4194. Since the low point in April, ETH has accumulated a rise of over 300%, with a monthly increase of as much as 65% in July, significantly outperforming most other encrypted assets.

Bitcoin has performed relatively steadily, currently fluctuating in the range of 112,000-119,000 USD. Solana has also rebounded from its low point on August 3 to around 180 USD. Overall, the altcoin sector is fully active, with multiple projects frequently reporting Favourable Information, and market sentiment is clearly warming up.

Data shows that the total liquidation amount in the crypto market in the past 24 hours reached 362 million USD, with short positions liquidating 286 million USD and long positions liquidating 78.14 million USD. ETH contributed to a liquidation scale of 203 million USD, with the largest single liquidation occurring on a certain trading platform's ETH perpetual contract, amounting to as high as 10.6284 million USD.

In terms of capital flow, both Bitcoin and Ether spot ETFs have ended their previous net outflow trend and have shifted to continuous net inflow, reflecting that funds are accelerating their return to the crypto market.

At the macro level, former U.S. President Trump signed an executive order allowing 401(k) pension plans to invest in cryptocurrencies and other alternative assets. Although this policy has yet to be implemented, its symbolic significance has sparked heated discussions in the market. Meanwhile, the policy of imposing tariffs on several trading partners officially takes effect, and the unresolved risk factors are gradually being digested.

Regarding the Federal Reserve's policy, several officials have expressed support for interest rate cuts, and the market generally expects a rate-cutting cycle to begin in September or December. If the labor market weakens further, the extent of the interest rate cuts may increase. Analysts believe that tariff policies could raise inflationary pressures, forcing the Federal Reserve to take action ahead of schedule.

Regarding institutional investors, the executive chairman of a certain company stated that the tariff policy will catalyze a new round of adoption of Bitcoin by institutions. Some analysts predict that by 2025, venture capital firms will invest up to $25 billion in crypto startups. So far this year, $13.2 billion has flowed into crypto project financing, representing a 40% increase compared to the entire last year.

On-chain data also shows signs of recovery. In July, the total value locked in DeFi protocols reached a historic high of $270 billion, an increase of 30% month-on-month. NFT trading volume increased by 96% month-on-month to $530 million. The total circulation of stablecoins reached a historic high of $265 billion, with a growth rate of 5% over the past 30 days.

In terms of mainstream crypto assets, according to analyst data, over 1.035 million ETH (approximately $4.167 billion) have been accumulated by institutions through various channels in the past month. A gaming company holds a total of 532,914 ETH, valued at $2.07 billion. Regarding Solana, its digital asset treasury company originally planned to raise $1.5 billion through a SPAC merger for listing, but this plan has recently been halted.

In the altcoin sector, the lawsuit between XRP and the U.S. Securities and Exchange Commission has finally come to an end, with both parties reaching a settlement. Ripple has stated that it will focus on building the "value internet." Ethena announced a $360 million private equity investment deal with a stablecoin issuer and launched a $260 million buyback plan for ENA tokens. Chainlink has launched an on-chain reserve program that converts enterprise user fees into LINK tokens to support network development. BounceBit has partnered with a major asset management firm to launch a new product, BB Prime, integrating tokenized money market funds to create CeDeFi structured products.

Overall, this round of market rebound is driven by macro policies, supported by on-chain data, and propelled by capital sentiment. Whether it is the strong breakthrough of Ether or the general warming of altcoins, the market seems to be accelerating in an anticipated direction.