According to BlockBeats, on September 10, the deputy chief operating officer of Shengli Securities published an analysis that the virtual asset market has reached the lower edge of the volatile trend. Last week, the price of Bitcoin fell by about 4.25% and Ethereum fell by about 5.29%. The decline of virtual assets is mainly due to the impact of US economic data, but from the perspective of the virtual asset market, it still shows resilience.
In terms of capital flows, the over-the-counter Bitcoin ETF outflow last week was about $706 million, and the Ethereum ETF outflow was about $98 million. Despite the outflow of funds, if market sentiment remains positive, it may only be a temporary adjustment rather than a change in the long-term trend; the Bitcoin contract holdings on the exchange are at a historical high, which usually means that capital remains on the market, showing traders’ firm commitment to the market.
This funding dynamic may be a sign of market participants’ recognition of current price levels and their medium- to long-term optimism about the second half of the bull market.
From the perspective of chain effects, the ratio of the average market value of the largest 10% of US listed companies to the average market value of the other 90% of US listed companies is 28 times, and the top companies are constantly concentrated, which means that a round of rotation within the US stock market may be about to begin, which will lead to a decline in virtual assets.
The prices of Bitcoin and Ethereum have experienced a decline in this week’s virtual asset market turmoil, but this does not necessarily indicate a shift in the long-term trend. Market volatility is its inherent characteristic, and investors should pay more attention to the fundamentals and long-term value of the market. As the market develops and matures, perhaps more stability and predictability can be expected.
