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Hello, I'm a senior analyst in the vibrant world of blockchain. On July 28, 2026, the cryptocurrency market was once again full of hot topics. Even amidst complex market conditions, I'll extract the core insights and analyze them in an easy and engaging way. Unfounded optimism is absolutely forbidden! Let's take a cool-headed look at the market based on numbers and facts.
The most notable movement in the market recently is undoubtedly Ethereum (ETH). The news that Ethereum and Hyperliquid (HYPE) simultaneously surpassed Bitcoin (BTC) is raising expectations for a resurgence in altcoin buying.
This is a good sign. Because Ethereum spot ETFs attracted $103.9 million in a week, tripling the inflows into Bitcoin ETFs. This is strong evidence that institutional funds are seriously moving into Ethereum. The fact that Bitmain (BMNR) additionally purchased 9,946 ETH and bought back its own shares, causing its stock price to surge by 5%, also demonstrates companies' positive outlook on Ethereum.
Furthermore, Ethereum hit a 10-week high, and with $113 million in short positions liquidated, a charge towards $2,000 appears to have begun. Anonymous whales were also spotted withdrawing large amounts of ETH from Binance and making additional purchases, which can be interpreted as accumulation. Analysis also suggests that Ethereum's trading volume surged by 163%, combined with a new whale accumulation trend, targeting $2,180. The ETH/BTC trading pair reaching its highest level in the last three months indicates that Ethereum is showing relative strength compared to Bitcoin.
Unlike Ethereum's strength, Bitcoin is showing a somewhat unstable trend. Price corrections occurred, with BTC falling below $64,000, and US Bitcoin spot ETFs saw $465 million exit in just two days, with BlackRock's IBIT also joining the outflows. It's also noteworthy that Strategy (MSTR) stopped buying Bitcoin and redeemed it.
However, it's not all negative. Ahead of the Federal Reserve's (Fed) interest rate decision and the release of US inflation data, the Bitcoin options market observed a sharp decrease in demand for downside protection and a surge in bets for an ascent to $70,000. This means that more investors are anticipating an upward movement depending on the Fed meeting's outcome. The founder of LD Capital advised that Bitcoin needs to break above $67,500 for a sustained rally, and a dollar-cost averaging strategy in July-August would be effective.
Currently, Bitcoin has entered an undervalued zone, but on-chain analysts suggest that the capitulation typical of a cycle bottom has not yet occurred. This means that while the market has stabilized in an undervalued state, the demand drivers needed to spark a new rally are still lacking.
Discussions on the 'CLARITY Act,' a cryptocurrency market structure bill, are active in the US Congress. Major financial institutions such as BlackRock, Fidelity, and Goldman Sachs have declared their support for the CLARITY Act, raising expectations for regulatory clarity in the cryptocurrency industry. A vote in the US Senate plenary session is expected in August, and support from the Democratic party is needed for it to pass with 60 votes.
This is a very important step forward. Because clear regulations will further accelerate institutional investors' participation in the market. However, the New York State Attorney General emphasized that the CLARITY Act could weaken state governments' power to crack down on financial crimes, requiring stronger safeguards. This suggests that political variables still remain for the bill's passage. Meanwhile, the tokenization platform Securitize is consistently expanding its regulated business areas, such as registering as an SEC-registered investment advisor (RIA), demonstrating ongoing integration into mainstream finance.
Even amidst an overall slump, the altcoin market is showing signs of overheating in certain assets. Shiba Inu (SHIB) staged a 'mystery rally' with a 22% surge in a week, showing a short-term sharp rise with its daily burn rate skyrocketing by 5,223%. However, its gains were given back within a day, and open interest plummeted by 25%, indicating extreme volatility. This is analyzed to be due to the Shiba Inu rally being concentrated primarily on speculative demand from specific exchanges like Upbit.
Analysis suggests Dogecoin (DOGE) is eyeing $0.16 after confirming a golden cross on the hourly chart, while Solana (SOL) is hesitating to break above $80 despite institutional funds flowing in throughout July. Prediction market participants believe Ripple (XRP) is likely to remain confined between $1 and $1.20 until August 1. Ripple's momentum for a rebound has somewhat slowed, with XRP spot ETF demand plummeting by 91% and ETF inflows recording $0 for 10 days.
These trends show that the altcoin market moves very selectively, and assets like memecoins, in particular, tend to react strongly to short-term issues or speculative demand. Therefore, when investing in altcoins, it is crucial to more carefully examine the fundamentals of individual projects and market liquidity.
The cryptocurrency market is no longer free from the movements of macroeconomic indicators and traditional financial markets. While the prevailing outlook is that the Federal Reserve (Fed) is likely to keep interest rates frozen in July, some traders are betting over 33% on a 25bp hike, leaving uncertainty.
With geopolitical tensions easing in the Middle East, international oil prices plummeted by 7% in a single day, leading to a sharp rebound in the US stock market. This was due to expectations that falling oil prices could reduce inflationary pressures, thereby decreasing the likelihood of a Fed rate hike. However, Bank of America (BofA) analyzed that historically, August to October is the weakest period for the S&P 500 annually, and during this time, safe-haven assets like gold and the dollar tend to show strength. These macroeconomic forecasts can also impact the cryptocurrency market, so close monitoring is required.
The movements of AI tech stocks are also important. The AI industry continues to grow, with Nvidia (NVDA) launching a global AI security alliance and LG CNS joining the Nvidia-Meta AI new materials alliance. However, some big tech companies are facing difficulties, such as SpaceX (SPCX) stock plummeting and Elon Musk's assets halving. This shows that, separate from the overall optimism for the AI industry, stock prices can vary depending on individual companies' performance and growth potential.
Today's market clearly showed Ethereum's strength, selective surges in some altcoins, and Bitcoin taking a breather. Ethereum is showing positive signals from institutional fund inflows and on-chain metrics, increasing its potential to be a key player in the next bull cycle. Bitcoin, on the other hand, is at a point where a more cautious approach is needed amidst ETF outflows and macroeconomic uncertainties.
The discussion of the CLARITY Act in the US Congress is an important step towards integrating the cryptocurrency market into the mainstream, but political variables still remain. The altcoin market is showing high volatility and reacting sensitively to short-term speculative demand, making fundamental-based investing even more crucial. Don't forget that macroeconomic conditions and the movements of traditional financial markets also significantly impact the cryptocurrency market.
As I always say, the market is constantly changing. Please make wise investment decisions based on facts and data. I'll be back with more lively news in the next column!
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