Matrixport: Market Momentum Peaks in Crypto Week, Summer Consolidation Most Likely Scenario

BlockBeats News, July 25th, Matrixport posted on social media indicating that it expects the market cooldown phase to potentially last until August. The technical reversal indicators show that both Bitcoin and Ethereum are not only overbought but also prone to pullbacks, marking the culmination of market momentum with the end of the U.S. cryptocurrency week.

The White House has postponed its highly anticipated cryptocurrency report from the original July 22nd release date to July 30th, which was expected to outline a potential Bitcoin reserve strategy. Given the release timing just before the summer recess, market expectations should be tempered; the report is unlikely to contain any substantive or actionable policy guidance.

This delay also indicates that the U.S. government has prioritized the "GENIUS Act," centered around stablecoins, which aims to use U.S. Treasury bonds to back a USD stablecoin for government debt financing. This framework creates a strategic pathway for government debt demand and reinforces the importance of digital asset regulation at a macro financial level.

As the market enters a relatively calm summer and approaches the seasonal recess, Matrixport expects an increase in deleveraging (deleveraging activities). Many traders have built substantial long positions that now require sustained upward momentum to maintain; lacking this momentum may weaken confidence, especially considering the increased holding costs due to rising funding rates. This phenomenon is particularly pronounced in Ethereum, where open interest has surged from $14 billion to $25 billion. Although funding rates have only slightly increased, as summer arrives, they are likely to be repriced lower, triggering further deleveraging.

In conclusion, the selling pressure from early investors profit-taking is on the rise. All of these factors reinforce Matrixport's view: a summer consolidation is currently the most likely scenario.