Bitcoin broke through 120,000 to a new high at the beginning of the week and then stabilized, after which Ethereum became the protagonist, finally standing above $3,000 after a year of consolidation, with the highest price breaking through $3,600. The cryptocurrency market, like traditional markets, saw Ethereum leading other Altcoins in a surge, with XRP also breaking to a new high and reaching as high as $3.64.
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The cryptocurrency market's momentum near the weekend was mainly due to the US House of Representatives finally passing three important cryptocurrency-related bills, which confirmed the development of stablecoins and provided clear regulations for other cryptocurrency issuances, boosting Ethereum and becoming the biggest catalyst for Ethereum's surge. Currently, Bitcoin has been hovering around 118,000, and since breaking to a new high, it has established a short-term top and is now waiting for news to determine its direction.
US Economic Data Becomes Focus Before Fed Meeting
Although two weeks remain before the Fed meeting, the market is already speculating about a July rate cut. While the general expectation is that July rates will remain unchanged, several dramatic events in these two weeks, such as Powell's potential resignation and some dovish comments from Fed board members, seem to want to collaborate with Trump to restart the rate cut cycle. Even if July remains unchanged and expectations for a September rate cut are strengthened, it could help the market remain optimistic in August and September.
There are no significant known events early this week that could sway the market. The key US economic data will be concentrated on Thursday, including unemployment data, manufacturing, and service PMI. Tariff issues are not expected to produce market-affecting news this week, and other countries yet to confirm tariffs are likely to have results only next week. Therefore, the market's momentum from last week is expected to continue, maintaining an optimistic trend.
Benefits of Three Major Cryptocurrency Bills for Investors
Enhanced Stability: Stablecoins provide lower volatility options in the crypto market, attracting investors seeking to reduce risk. The regulatory framework provided by the Genius Bill gives investors more confidence in stablecoin issuers, potentially promoting higher adoption and value.
New Investment Opportunities: As stablecoins integrate with traditional finance, investors can explore related projects like cross-border payments or DeFi application investments.
Portfolio Diversification: Investors can allocate part of their portfolio to stablecoins as a hedging asset during market downturns, balancing the volatility of other cryptocurrencies.
However, investors should also be cautious:
Avoid Overheated Assets: Be wary of investing in overly hyped assets lacking fundamental value, especially those related to political figures or speculative trends like TRUMP meme coins, where most investors have already incurred losses, despite Trump's organization earning hundreds of millions from sales fees.
Regulatory Changes: While current bills provide clarity, future regulatory changes could still impact the crypto market, making it crucial to stay updated.
Market Volatility: Despite regulatory progress, the crypto market remains volatile. Investors should be prepared for price fluctuations and consider risk management strategies like diversification and setting stop-loss orders.
The new growth point and strategic window are gradually shifting towards Ethereum, with more institutions initiating ETH reserve strategies. The Ethereum market is becoming increasingly institutionalized, and ETH is not just a simple buy-and-hold asset but can also be staked. Once these ETF institutional liquidity flows in massively, it will further expand the market scale of the Ethereum staking track, thereby benefiting the entire Ethereum ecosystem.
Currently, the focus is on Ethereum-related coins that can be bought on pullbacks, with staking track coins being the first choice, such as LDO, RPL, SSV, EIGEN, Pendle, etc.
