July 24, the overall crypto market remained relatively cautious, with total crypto market capitalization down slightly by 1.3%. The Crypto Fear and Greed Index slipped back to 28, as risk-off sentiment intensified. BTC faced pressure, falling back and trading in a range around $65,000, with competition between bulls and bears becoming more intense. At the macro level, it became the key factor suppressing today’s market: oil prices surged above 100, raising concerns about inflation; US Treasury yields rose; and market expectations for the Federal Reserve to raise interest rates moved sharply higher. Expectations for tighter liquidity weighed on crypto risk assets. Overall, capital tilted toward risk avoidance and an exodus to safety. Mainstream coins broadly fell, while the DeFi sector rose against the trend by 9.8%, showing clear divergence and rotation within the market.

On regulation, the US “clear” bill is still being debated. A Ministry of Finance official said the bill’s rollout is close, but differences remain in the Senate, so the strength of short-term positive catalysts is limited. SEC officials indicated that crypto custody-and-lending products may be brought under securities regulation, adding uncertainty to industry oversight. Spot ETFs still maintained continuous net inflows. Institutions accumulated on dips amid the fluctuations, but their buying pace slowed; with insufficient incremental capital, it was unable to drive a one-way rally, and mainly served to support the bottom.

On the trading tape, contract long/short positions frequently changed hands, more intraday wicks appeared, and the risk of liquidations from high leverage increased. In addition, multiple cross-chain bridges were attacked, resulting in the theft of tens of millions of assets, which triggered market concerns about on-chain security. Overall, various pieces of news mainly amplified short-term volatility and were unable to change the sideways trading pattern. The market still remained dominated by macro liquidity, and news only caused phased sentiment disturbances.