Matrixport: Market momentum peaked during the encryption week, and summer consolidation is currently the most likely scenario.

On July 25, Matrixport posted on social media that it expects the market cooling phase to last until August. Technical reversal indicators show that Bitcoin and Ethereum are not only in an overbought state but are also susceptible to pullbacks. The end of the U.S. cryptocurrency week marks the peak of market momentum. The White House has postponed its highly anticipated cryptocurrency report from the originally scheduled July 22 to July 30, which was expected to outline potential Bitcoin reserve strategies. Given the timing coincides with the eve of the summer recess, market expectations should be tempered; the report is unlikely to contain any substantial or actionable policy guidance. This delay also indicates that the U.S. government prioritizes the stablecoin-centric GEN Act, which aims to finance U.S. government debt by supporting U.S. dollar stablecoins through U.S. Treasury securities. This framework creates a strategic pathway for the government to generate debt demand and reinforces 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 Close Position (deleveraging) activities to increase. Many traders have established sizable long positions that now require sustained upward momentum to maintain; without this momentum, confidence may wane, particularly considering the rising cost of holdings due to increased funding rates. This phenomenon is particularly evident on Ethereum, where its open contracts have surged from $14 billion to $25 billion. Although funding rates have only slightly increased, they are likely to be repriced lower as summer approaches, triggering further Close Position actions. In summary, the selling pressure from early investors taking profits is on the rise. All of this reinforces Matrixport's view: a summer consolidation is currently the most likely scenario.