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Many of you might be concerned about the recent volatility in the market. However, even amidst seemingly complex market conditions, important changes and opportunities always exist for us to pay attention to. Today, I'll provide a clear-headed analysis of the market based on the major news from the past 24 hours, and we'll discuss the future outlook together!
Unfounded optimism is strictly forbidden! I will always extract and explain only the core points based on figures and facts, so please stay with me until the end.
This week, the cryptocurrency market has struggled to find any signs of rebound amidst macroeconomic uncertainties. As AI-related stocks faltered, the crypto market also tumbled, suggesting a deepening correlation with traditional financial markets.
Bitcoin's key support level of $62,350 collapsed, and Ethereum's $1,850 support level is also under threat, indicating strong downward pressure on major altcoins. Notably, over the past 24 hours, $184 million worth of futures positions were forcibly liquidated on major exchanges, with long position liquidations accounting for 95.41% for Bitcoin and 89.47% for Ethereum. This is a clear signal that optimistic expectations for the market have significantly diminished.
Renowned Bitcoin analyst PlanB analyzed that Bitcoin has entered a bottoming-out process, which typically takes 1 to 3 months, with a possibility of further declines during that period. This implies that we should view the market with a longer-term perspective rather than focusing on short-term rebounds.
Institutional investors' fund flows are also concerning. Approximately 383.3 billion KRW (Korean Won) was net outflowed from US Bitcoin spot ETFs, and the Coinbase Bitcoin Premium Index recorded negative values for 75 consecutive days, clearly indicating a trend of fund outflows from US institutional investors.
Furthermore, investor sentiment has worsened due to the recent Coldcard hardware wallet vulnerability hack, which shook confidence in self-custody. According to Santiment, positive opinions related to Bitcoin currently stand at only 0.58 per negative opinion, giving an idea of the extent of investors' fear.
While these situations increase short-term market uncertainty, from a long-term perspective, they can also be seen as a process where market bubbles deflate and the market becomes more robust through correction. It's time to observe the market coolly and prepare for the next opportunity.
Interesting changes are being detected in the stablecoin market. Domestically, 560.3 billion KRW was outflowed overseas via stablecoins, enough to shake Upbit's dominance. Binance also saw a net outflow of $2.2 billion in stablecoins in July alone, with a cumulative $7 billion since the beginning of the year.
These large-scale outflows are not just movements of funds between exchanges but important indicators showing that investors are withdrawing funds from the market due to risk aversion. The recovery of stablecoin demand is an essential factor for a market rebound, so we must closely monitor this trend going forward.
Domestically, the competition for dominance in Korean Won stablecoins is intensifying. Naver has joined forces with Dunamu and Hana Bank, while Kakao has partnered with Circle and a banking consortium, shaking up the market landscape. This signifies that major IT companies are making full-fledged entries into the blockchain market, forming new competitive structures.
Meanwhile, Coinone has joined the top three in stablecoin trading, surpassing Upbit and Bithumb, with its USDC zero-fee trading policy. Zero-fee trading is a very effective strategy for user acquisition, and it remains to be seen whether other exchanges will adopt similar strategies in the future.
The European Central Bank (ECB) has issued a warning, identifying the proliferation of stablecoins as a significant threat to the financial system. This signals growing concerns among regulatory authorities about the impact of stablecoins on the existing financial system. We must closely monitor related developments as future moves to strengthen stablecoin regulations may emerge.
In July, the cryptocurrency industry experienced 30 hacking incidents, resulting in losses of $210.3 million. This is a 177% surge compared to June, once again highlighting the importance of security.
Particularly shocking was the theft of approximately $70 million due to a Coldcard hardware wallet vulnerability. As warnings emerged that even hardware wallets are not 100% secure, it is wise to store assets across multiple wallets, as emphasized by Binance founder Changpeng Zhao. Furthermore, incidents like the unauthorized token issuance and profit-taking by a former BNB Chain employee and the exploitation of unverified contract vulnerabilities once again underscore the importance of internal security management and contract verification for projects.
These incidents compel investors to reconsider the importance of 'self-custody'—protecting their own assets—along with the responsibilities that come with it. Beyond simply holding coins, it is essential to enhance one's understanding of security and master methods for safely managing assets.
Even amidst challenging market conditions, the blockchain ecosystem continues to evolve. Uniswap v4 accounted for approximately half of the quarterly Decentralized Exchange (DEX) trading volume within 18 months of its launch, demonstrating the robust growth of DeFi. This is a positive sign that DeFi protocols are consistently developing and providing tangible value to users.
Furthermore, SushiSwap's launch of 'Sushi Launch,' a Real World Asset (RWA) token issuance platform on the Robinhood chain, is highly encouraging. By enabling the creation and distribution of tokens linked to real-world assets like stock tokens, blockchain can be seen as taking a significant step towards a closer connection with the real economy.
The growth of prediction markets is also noteworthy. News that a staggering $20 billion was poured into the 2026 FIFA World Cup on-chain prediction market clearly demonstrates the potential of blockchain-based prediction markets. An analysis also revealed that Robinhood's prediction market revenue surpassed its cryptocurrency trading revenue, indicating that new forms of blockchain applications are attracting investor interest.
The XRP Ledger (XRPL) is set to introduce new features with the upcoming 'xrpld 3.3.0' release next week, focusing on expanding real-world use cases such as global remittances, transactions, and collateral utilization. TRON (TRX) also continues to accumulate TRX, demonstrating its commitment to ecosystem expansion.
While the news of DeFi Kingdoms (DFK) chain's operational termination is unfortunate, safely migrating user assets and releasing the SDK to allow third-party developers to continue the ecosystem is a crucial process for the sustainable development of blockchain projects.
Everyone, the market is always highly volatile and difficult to predict. Especially during times like these, with significant macroeconomic uncertainty and a series of security issues, a clear-headed analysis and a wise response are even more necessary.
However, we must understand all of this as a process where blockchain technology becomes stronger and more advanced. Positive trends, such as intensifying stablecoin competition, the blossoming of the RWA market, and the rise of prediction markets, certainly exist.
Rather than being swayed by short-term market fluctuations, it is crucial to believe in the fundamental value and potential of blockchain technology from a long-term perspective, continuously learn, and seek out investment opportunities. Let's continue to analyze important market trends together, without missing anything!
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