How to view the sentiment in the altcoin market? $BTC $ETH the separation of the altcoin market
The $OTHERS indicator is terrifyingly accurate. Everyone says that BTC, ETH, and the altcoin market are disconnected now, and the charts indeed show this.
$OTHERS represents the total market cap excluding the top 10 coins.
On July 21, it peaked at 315B, and has now returned to 272B, meaning it has retracted about 15% in just 10 days.
At that time, the price of BTC was around 119.5K, and now it is 115K, a drop of about 3.5%. ETH has fallen from around 3800 on the 21st to the current 3630, a drop of about 4.5%. At one point, it even almost touched 4000 USD (peak around 3950).
It can be observed that $BTC was previously fluctuating between 115K - 118K, and every time it moves up or down, it somewhat affects ETH and altcoins.
ETH sometimes goes a bit crazy, bouncing back 100-150 points in a day, but as long as BTC drops too much, it still goes down.
This somewhat aligns with what @_FORAB mentioned earlier, that in this cycle, BTC, ETH, and other altcoins might be completely separated markets, with sentiments pulling each other, but trends need to be analyzed individually 🫣
In short: understanding each market well requires a higher level of awareness.
Recently, the liquidity in the secondary market is good, but if altcoins crash and you don't exit in time, it can still be deadly.
The fundamentals of the Ethereum ecosystem remain unchanged, and there are still big things ahead, so for me, continuously accumulating fundamentally strong ETH DeFi tokens at this stage is still fine.
The sentiment in the altcoin market might be a small bear market, but it’s not for the Ethereum ecosystem 💡
In the face of the explosive buying of ETH reserves, the selling pressure from Sun has no impact 🤯
$ETH quietly returned to 3800 last night... this morning it surged to 3900!
Moreover, this wave of increase seems to be discussed far less than the previous one.
Previously, on July 23, Sun withdrew $600 million worth of ETH from Aave.
However, on the morning of July 27 at 10 AM, news broke that Sun transferred 60K $ETH from Binance again (worth $225 million).
In the past, these signals could immediately affect market confidence. In fact, last week $ETH did experience a pullback, dropping to a low of 3502. Yesterday, the buying volume of ETH was actually quite considerable, with several institutions collectively purchasing around 250,000 $ETH.
The total amount of ETH reserves and ETFs currently held has reached 6.73%, which actually exceeds the current holdings of BTC ETFs.
MicroStrategy currently holds about 607K BTC, valued at $73 billion, which only accounts for 2.894% of the overall BTC market cap.
In terms of accumulation speed and the potential to drive on-chain activity in the future, the narrative of ETH reserves is more stimulating to the overall ecosystem than BTC, which can currently only influence coin prices. I believe that if ETH does this well, it will actually radiate to other chains, including $SOL, $SUI, $HYPE, etc.
Additionally, it's worth mentioning that the trading volume of $ETH spot on Binance has basically exceeded that of BTC every day this week, showing no signs of weakening.
Today, the trading volume of $ETH spot once again far surpassed $BTC by 64%.
I believe this situation will continue to echo the claim that $ETH's price performance far exceeds that of $BTC this time.
The current trading volume is $2 billion, while the previous FOMO was around $4 billion.
I also observed that on July 26, ETH Strategy bought 4.2K $ETH in one go and directly conducted a token sale for $STRAT, causing quite a stir in the English-speaking community.
The official Twitter stated, "This purchase will benefit all presale STRAT holders, increasing the ETH value of each STRAT by 8.5%."
we're just started.
There are currently no reasons to be pessimistic 😎
From a purely policy environment perspective, there is no longer a reason to be pessimistic. Yesterday's SEC "Project Crypto" and the 166-page report from the White House Digital Assets Working Group a few days ago are both fully loosening the asset attributes, trading channels, and entrepreneurial environment for Crypto. It wouldn't be an exaggeration to say that they are comprehensively promoting the U.S. to become the "global crypto capital center."
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