Victory Securities: The decline in US stocks may lead to continued fluctuations in Bitcoin, but the virtual asset market still shows resilience

ChainCatcher news, according to Dongwang reports, the Deputy COO of Victory Securities published an analysis stating that the virtual asset market has reached the lower end of a volatile trend. Last week, Bitcoin's price dropped by approximately 4.25% over the week, while Ethereum fell by about 5.29%. The decline in virtual assets is mainly due to the impact of U.S. economic data, but from the perspective of the virtual asset market, it still shows resilience.

In terms of capital flow, about $706 million flowed out of the over-the-counter Bitcoin ETF last week, and approximately $98 million flowed out of the Ethereum ETF. Despite the outflow of funds, if market sentiment remains positive, it may only be a temporary adjustment rather than a change in the long-term trend; the open interest in Bitcoin contracts on exchanges is at a historical high, which usually indicates that capital remains in the market, showing traders' strong commitment to the market.

This dynamic of funds may reflect market participants' recognition of the current price level and signs of optimism for the mid-to-long-term in the latter half of the bull market. From a spillover effect perspective, the average market capitalization ratio of the top 10% of U.S. listed companies to the average market capitalization of the other 90% of U.S. listed companies has reached twenty-eight times, indicating a concentration of leading companies, which suggests that a rotation within U.S. stocks may soon unfold, potentially leading to a decline in virtual assets.

In this week's fluctuations in the virtual asset market, the prices of Bitcoin and Ethereum have experienced a decline, but this does not necessarily indicate a change in the long-term trend. Market volatility is an inherent characteristic, and investors should pay more attention to the fundamentals and long-term value of the market. As the market develops and matures, more stability and predictability may be anticipated.