Daily on-chain Briefing | August 3

Market Overview:

The market currently shows a cautiously optimistic attitude, with the fear and greed index at 55, indicating a state of "greed."

Market Sentiment:

- Bullish: 60%
- Bearish: 30%
- Neutral: 10%

Overall, there is a pattern of optimism and caution coexisting. The bullish sentiment is mainly driven by historical cycles and institutional capital inflows, while the bearish sentiment is influenced by market corrections and macroeconomic pressures.

Today's news:

1. Bitcoin volatility intensifies, market uncertainty emerges

- Bitcoin rebounded after falling below $113,000, with noticeable market volatility
- Bitcoin dipped to a low of $111,920 within 24 hours before recovering to $113,412. The overall cryptocurrency market cap fell below $3.69 trillion, with a liquidation amount reaching $900 million.

Impact: Recent fluctuations reflect the market's sensitivity to geopolitical and regulatory changes, but the rapid rebound shows that investor confidence remains strong, particularly with the continued participation of both institutional and retail investors. Volatility may increase in the short term, and risk management should not be overlooked.

2. Trump's tariffs trigger a sell-off in the crypto market

- Trump tariffs trigger risk-averse sentiment in the crypto market
- Trump announced the implementation of "reciprocal" tariffs on multiple countries, ranging from 10% to 41%, triggering market risk aversion. In 24 hours, Bitcoin and Ethereum experienced liquidations of $228 million and $262 million, respectively.

Impact: Tariff policies bring uncertainty, intensifying market volatility and clearing pressure in the short term. Retail investors may become cautious, while institutions may take the opportunity to position themselves. In the long term, the fundamentals remain robust, with Bitcoin rising 8% in July and Ethereum increasing 49%, while ETF inflows continue to support the market.

Choose the right track and run alongside for the long term.

No matter how the market fluctuates, remember to stay rational, manage risks well, and don't let emotions influence your investment decisions.

Wishing you smooth trading, always keep DYOR!