Crypto Assets Market Outlook: Bitcoin, Ethereum and Emerging Trends

Recently, the crypto assets market has experienced a round of fluctuations, with Bitcoin once again approaching the $110,000 mark, and Ethereum also showing signs of a breakout. Meanwhile, the altcoin market is highly volatile, prompting market participants to reflect on future trends.

Currently, the overall direction of the crypto assets market may not become clear until September. Considering factors such as macroeconomic resistance, summer liquidity constraints, and quarterly position adjustments, the real market dynamics will only become apparent after the August holiday ends and market participants fully return.

From the recent market performance, the rise of most altcoins has been mainly driven by short squeeze. Traders, influenced by the previous rebound, chase short-term momentum, but lack support from long-term holders. As a result, many tokens that surged sharply also experienced equally dramatic declines afterward.

It is worth noting that tokens with practical use, strong fundamentals, or buyback mechanisms have shown greater resilience, performing more steadily during downturns and recovering faster. This reflects that the market is beginning to pay more attention to the intrinsic value of projects.

For the future market trends, the following observations can be summarized:

1. The demand for Bitcoin is real and lasting. Traditional capital is gradually entering the market through regulated channels such as ETFs, which significantly supports the capital nature of Bitcoin compared to previous cycles. This reduces the likelihood of large-scale sell-offs, unless influenced by major macro events.

2. The altcoin market will further differentiate. Funds will ultimately flow back to certain altcoins, but will mainly concentrate on projects with clear use cases and practical applications. Ethereum may outperform other public chains due to its regulatory clarity, increasing DeFi adoption, deflationary structure, and staking demand.

3. Some venture capital-backed tokens face structural risks. Token unlocking pressure, ongoing selling by validators and early investors may limit their upside potential, especially in cases of insufficient liquidity.

4. The pure meme coin craze may be nearing its end. Although individual meme coins with strong narratives and market recognition may still have speculative opportunities, overall, the era of "cute animal coins" as a main investment line has come to an end.

5. Fairly distributed Web3 projects may become new investment hotspots. As the market grows weary of venture-backed tokens, some innovative projects with fair distribution may attract more attention.

6. The combination of AI and Crypto Assets may become the next important trend. As the hype around meme coins cools down, investors' attention may shift towards AI-related crypto projects with practical application prospects. Many AI x Crypto projects adopt a fair distribution model, aligning with current market preferences.

Overall, the future market may place more emphasis on the actual value and application scenarios of projects. Investors need to closely monitor on-chain market dynamics to seize investment opportunities arising from information asymmetry. At the same time, it is also worthwhile to lay out and research in advance for emerging fields such as the combination of AI and encryption.