Matrixport: Market momentum peaks during crypto week, summer consolidation is currently the most likely scenario to occur

BlockBeats News: On July 25th, Matrixport posted on social media that it expects the market cooling phase to continue until August. The technical reversal indicator shows that Bitcoin and Ethereum are not only overbought, but also prone to pullbacks, and the end of the US cryptocurrency week marks the peak of market momentum. The White House has postponed the release of its highly anticipated cryptocurrency report from July 22nd to July 30th, which was originally expected to outline potential Bitcoin reserve strategies. Considering that the release time coincides with the eve of the summer recess, market expectations should be restrained; This report is unlikely to contain any substantial or actionable policy guidance. The postponement also shows that the US government has given priority to the GENIUS Act with a stable currency as its core. The core of the Act is to finance the US government debt through the US treasury bond supporting the US dollar stable currency. This framework provides a strategic pathway for the government to create debt demand and strengthens the importance of digital asset regulation at the macro financial level. As the market enters a relatively calm summer and approaches the seasonal recess, Matrixport expects an increase in closing (deleveraging) activities. Many traders have established sizable long positions, which now require sustained upward momentum to maintain; If this momentum is lacking, confidence may weaken, especially considering the increase in holding costs caused by rising funding rates. This phenomenon is particularly evident on Ethereum, where open contracts have surged from $14 billion to $25 billion. Although the funding rate has only slightly increased, with the arrival of summer, they are likely to reprice and lower, triggering further liquidation. In summary, the selling pressure brought by early investors' profits is on the rise. All of this reinforces Matrixport's viewpoint that summer consolidation is currently the most likely scenario to occur.