The U.S. July non-farm employment data was below expectations, causing Bit to drop short-term. However, within a week, the price returned to the $115,000 mark, driving Ethereum, XRP, and Solana to rebound simultaneously. The market's pattern of falling and then rising played out again, but this time, the driving force is not just sentiment, but underlying structures are gradually changing.
Institutional Entry Supports, Dip Buying Quickly Emerges
Data shows Bit initially dropped from around $119,000 to $111,800, then rebounded to $114,738, with a 24-hour increase of 1.22%. According to The Block report, BTSE COO Jeff Mei stated that long-term funds are "buying the dip" each time, and with traditional institutions positioning in crypto businesses, he expects the monthly price to have upward potential.
Vincent Liu: Three Clues Support 'Cautiously Optimistic'
Kronos Research Chief Investment Officer Vincent Liu defined the current situation as "cautiously optimistic". He stated in an interview:
The trend is bullish, but profit-taking pressure and macro variables cannot be ignored. Investors must remain flexible.
He pointed out that the Altcoin drop in late July was not a single event, but a double attack of "cascading liquidation" and "liquidity dilution", reminding that market fragility persists. Moreover, capital flows have changed, with Ethereum spot ETF seeing a single-day inflow of $533 million, reflecting institutions shifting some Bit positions towards Ethereum.
The Fear and Greed Index is moving towards "neutral leaning towards greed", coupled with whale buying and rate cut expectations, risk appetite is recovering. However, Vincent emphasized that the current optimism may not continue, with CPI on August 12 and September FOMC being variables.
SEC's Project Crypto: Bringing RWA Imagination
Regulatory aspects also influence sentiment. SEC Chairman Paul Atkins, who took office in April this year, launched "Project Crypto", with the core plan to establish clear regulations for DeFi and reduce the old approach of relying solely on enforcement.
The SEC plans to protect developers who "only write code", reduce compliance concerns, and will future allow tokenized securities to trade legally on-chain. Vincent Liu believes that policy transparency helps reduce uncertainty and introduce greater liquidity to DeFi. He said:
Although regulations are strict, the roadmap is clear, which actually encourages capital to invest long-term.
