Crypto Assets Market Outlook: Bitcoin Demand Continues, Alts Divergence Intensifies

As the price of Bitcoin approaches the $110,000 threshold again, market sentiment remains high. However, recent fluctuations have also sounded the alarm for investors. Meanwhile, Ethereum has also begun to show a breakthrough trend. So, how will the market evolve in the future? Which areas may contain opportunities?

Industry experts believe that the true direction of the Crypto Assets market will only become clear after September. Considering macroeconomic pressures, summer liquidity constraints, and quarterly position adjustments, the actual market dynamics may only manifest after the August holiday ends and participants return to the market.

The recent rise of alts has been mainly driven by short squeezes. Many traders, influenced by the reflex of the previous rebound, chased the price, but there was a lack of support from long-term holders. As a result, most tokens that surged dramatically subsequently experienced the same severe correction.

It is worth noting that tokens with real utility, solid fundamentals, or buyback mechanisms show greater resilience, being not only more stable during downturns but also recovering more quickly.

Market Trend Analysis

Bitcoin demand is real and persistent

Traditional capital is gradually entering the Bitcoin market through regulated channels such as ETFs. The nature of capital supporting Bitcoin is significantly different from previous cycles, which reduces the likelihood of large-scale sell-offs unless impacted by major macro events.

Alts Internal Differentiation Intensifies

In the long run, funds may flow back into certain alts, but it will not be comprehensive. Only those tokens with clear utility and practical application scenarios are likely to attract capital inflows. This is also why some analysts believe that Ethereum may outperform other public chains. Clear regulations, increased DeFi usage, deflationary mechanisms, and staking demand together create a strong virtuous cycle.

Tokens Supported by Venture Capital Face Structural Pressure

Token unlocks will continue to put pressure on price trends. In the case of insufficient liquidity, the ongoing selling pressure from validators and early investors limits the upside potential. Tokens from certain ecosystems may face greater ongoing selling pressure, which is related to their validator reward structures.

The advantages of Meme coins may fade

Although Meme coins have certain advantages in structure, such as no venture capital unlocking pressure and fair distribution, this phase may be nearing its end. Recent significant events may mark the peak of attention for Meme coins. After that, market interest in Meme coins began to wane.

In the future, only those Meme coins with strong stories and broad market recognition may possess real speculative value. Ironically, the market's fatigue towards venture-backed tokens has created opportunities for fairly issued Web3 projects, which may become the source of the next wave of wealth growth.

Future Opportunities: The Fusion of AI and Crypto

As the popularity of Meme coins wanes, market attention may shift towards new narratives. The combination of AI and crypto assets could become the next significant direction. Many AI-related crypto projects adopt a fair distribution model, echoing the market's pursuit of fairness.

Although early AI projects faced setbacks after the hype, some truly practical projects are quietly building during the bear market. There are already some projects standing out on the chain.

AI, with its clear practicality, is likely to become the next hot field. Many projects that combine AI with Crypto Assets adopt a fair distribution model, which aligns with the current market preferences.

Although there is no need to rush to build a position right now, if the market rises strongly again, the combination of AI and Crypto Assets may hold the greatest asymmetric opportunities. Investors can pay attention to the development of this field to prepare for potential opportunities that may arise in the future.