Recently, the cryptocurrency market is entering a cooling phase due to delays in the release of the White House's cryptocurrency policy report. This presents liquidation risks for long positions in Ethereum and indicates overbought conditions for both Bitcoin and Ethereum.
White House Policy Delay Triggers Crypto Market Cooling
According to Matrixport's latest report, the crypto market is entering a seasonal cooling phase, with consolidation expected until August. Bitcoin and Ethereum are reportedly in an overbought state, leading to potential price pullbacks. The surge in open contracts and leveraged positions in Ethereum elevates liquidation risks, especially with increasing funding rates.
Historical Patterns Indicate Summer Consolidation for Bitcoin and Ethereum
Historically, July has marked a consistent period of consolidation for both Bitcoin and Ethereum, with similar patterns observed in 2018, 2021, and 2023, typically following peaks in market momentum. Currently, Bitcoin's price stands at $117,562.50, reflecting a minor decline with a 2.07% gain over the past 24 hours.
Potential Liquidation Risks for Leveraged Ethereum Positions
Research suggests that the delayed cryptocurrency policy report and the GENIUS Act signal strategic priorities focused on stablecoins. With ongoing regulatory uncertainty, cryptocurrency prices are likely to experience volatility. The summer lull is already affecting investor sentiment and activity.
Overall, the current state of the cryptocurrency market suggests an imminent lull due to policy delays and historical consolidation trends. Investors should remain cautious in light of the increased volatility.
