Large tech stocks are about to release their earnings reports, and market fluctuations in the crypto space will be the norm in the coming week | Matrixport Market Observation
The US stock market and macro factors may be the focus this week, awaiting the earnings reports of major tech stocks.Market Trends
In the past week, BTC has shown a fluctuating upward trend. Driven by continuous net inflows of funds and Trump's favorable remarks at the Bitcoin 2024 conference, BTC briefly reached a weekly high of 70,079 USDT on the evening of the 29th, but subsequently weakened and returned to the 66,000 range for consolidation. Overall, against the backdrop of anxiety in the U.S. stock market and Mt. Gox compensation, BTC's price trend remains relatively strong.
The first day of ETH ETF listing saw a relatively muted response, affected by significant outflows from Grayscale's ETHE. In the first four days post-listing, the total net outflow of 9 ETH ETFs was 163 million USD, causing ETH to retract the gains expected from the ETF launch. However, based on current market performance, it cannot be ruled out that ETH ETFs follow a similar script to BTC ETFs, initially declining after the ETF launch, followed by an increase in price and ETF net inflows.
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The market awaits major tech earnings reports, with mixed performances from the three major U.S. indices
Affected by the upcoming earnings reports from major tech stocks like Apple, Microsoft, and Amazon, the U.S. stock market is in a state of anxiety. As of the latest closing information on July 29, the Dow Jones slightly declined, the S&P 500 saw a slight increase, and the Nasdaq turned from gains to losses, ending with a slight rise. Although the market generally holds a positive outlook on the profitability of the S&P 500, with more major tech earnings reports to come, market sentiment this week remains characterized by fluctuations. The earnings report schedule for this week includes: Microsoft (MSFT) on Tuesday, Meta (META) on Wednesday, and Apple (AAPL) and Amazon (AMZN) on Thursday. Additionally, Nvidia (NVDA) is expected to announce its earnings on August 28.
Democrats make a last-minute change, with young candidate Harris polling closely against Trump, increasing uncertainty in the election
After Biden announced his withdrawal from the race, the Democrats made a last-minute change by introducing young candidate Harris. Compared to Biden, Harris is more popular among voters. According to aggregated polling data, Harris's support closely trails Trump, with a single-digit percentage difference; Predict It data shows that the probability of a Republican landslide victory has dropped from over 50% to below 50%.
The increasing uncertainty in the election will continue to impact both the U.S. stock and crypto markets. It is advisable to closely monitor Harris's selection of a running mate from August 19 to 22, the Democratic National Convention, and the next presidential debate, which may take place in mid-September.
Trump attends the Bitcoin conference and announces plans to include BTC in the national strategic reserve
Last week, Trump attended the Bitcoin conference in Nashville and stated in his speech that if elected president, he would establish a national strategic BTC reserve, and that his administration would retain 100% of the Bitcoin it owns, including previously judicially seized assets. Trump also urged the audience not to sell their Bitcoin. His friendly attitude towards crypto assets has sparked significant discussion in the market (including among politicians), making crypto-friendliness a key weapon in this election.
Weak CPI data released in July combined with expectations of interest rate cuts may lead to a rotation in small-cap stocks until November
The current rally in small-cap stocks may continue until the election concludes. Small-cap stocks are sensitive to declining borrowing costs and benefit more from policies such as tax cuts and increased tariffs promised by Trump, resulting in significant gains and new historical highs in the small-cap market. Based on historical experience from Trump's 2016 campaign, the current small-cap rally lacks strong support and is likely to end after the election.
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Based on the market trends of the past week and the high volatility in the U.S. stock market, the crypto market is likely to continue fluctuating in the coming week. Experienced players may have completed their positions last week, waiting for subsequent positive releases. In a fluctuating market, seeking relatively stable returns by holding assets may be a good choice.
Dual-currency investments, Snowball, and Shark Fin structured products are available for users to seek high returns in a fluctuating market (if they successfully predict market trends).
The "Snowball" product performs particularly well in a fluctuating market, as it allows for returns on principal and interest as long as the underlying asset does not fall below the knock-in level. Matrixport's Snowball product is an American-style option, which can be exercised on any date after purchase, alleviating concerns about adverse market movements preventing timely exits. The Snowball has a "knock-in price" and a "knock-out price," and when the Snowball product you purchase fluctuates between these two prices, your returns will grow like a snowball rolling in the snow.
The "Shark Fin" is a structured product with principal protection and stable returns. The product is relatively stable, using a base annualized return as a guarantee. If users make correct judgments about market trends, they can also seek additional returns. Matrixport has launched widely recognized BTC and ETH-denominated Shark Fin products, which are very suitable for long-term BTC/ETH holders.
Proper use of "dual-currency investment" can meet various user needs such as profit-taking, bottom-fishing, and hoarding coins. If users believe the market will fluctuate, choosing a dual-currency product with an appropriate cycle and prices fluctuating between upper and lower thresholds can yield high returns; if users believe the market will enter a short-term decline followed by a rebound, selecting a suitable cycle "buy low" product can not only allow them to bottom-fish at a lower price but also earn financial returns; if users believe the market will experience an upward correction, choosing a "sell high" product may provide opportunities for profit-taking at peaks.
As a leading one-stop crypto asset management platform in Asia, Matrixport currently offers users a variety of asset management products, including dual-currency investments, Snowball, Shark Fin, Trend Smart Win, and other structured products; quantitative strategies, passive strategies, subjective strategies, and more. The above products support multi-currency investments and offer a wide range of investment cycles. Users are welcome to experience them.
Disclaimer: The above content does not constitute investment advice, sales offers, or purchase offers to residents of the Hong Kong Special Administrative Region, the United States, Singapore, or other countries or regions where such offers or invitations may be prohibited by law. Digital asset trading may involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.
