Market Flips the Script

DAILY MARKET OVERVIEW

Fed Shakes the Charts

👋 Hey, Crypto Enthusiasts! Just as the market was starting to build for its next leg up... it got shot down again. Let’s break down what happened.

The crypto market had been showing solid signs of recovery. Momentum was building, altcoins were starting to catch a bid, and sentiment was shifting.

But then two major events dropped - and they changed everything.

1. The Fed Held Rates, But Powell Spooked Markets
   
   The Federal Reserve kept interest rates steady at 4.5% (as expected), but it was Powell’s tone that did the damage. He didn’t mince words. Here’s what caught traders off guard:

• "Economy calls for a modestly restrictive stance for now"

• "Many uncertainties left to resolve"

• "Tariff passthrough to prices may be slower than thought"

• "What we see now is the very beginning of tariff inflation"

Translation? Rate cuts may not come as soon as markets hoped. In fact, the door might be closing for a September cut.

2. Inflation Data Surprised to the Upside
   
   Today’s inflation print came in hotter than expected, backing up Powell’s warning. It’s likely tariffs are already making their way into prices, and that’s bad news for risk-on assets like crypto.
   
   The U.S. dollar surged on the news - and when the dollar strengthens, crypto usually stumbles. Liquidity is tightening again.

📉 Where Do We Go From Here?

With inflation pressures building and uncertainty surrounding monetary policy, market confidence took a hit.

Tomorrow brings the key tariff deadline, and if more aggressive trade policies kick in, we could see another wave of volatility.

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SOCIAL SENTIMENT

Shaken but Watching

🛡️ Traders are turning more defensive.

The Total2 market cap (everything minus BTC and stablecoins) hit a major resistance level this week - and it’s showing rejection. That could be signaling a local top.

We’re now seeing signs of a possible deeper correction.

How far could it go?

🛑 Our take: If this bearish momentum continues, altcoins could correct 20% or more.

But - and this is important - market structure hasn’t broken down completely yet. There’s still hope for a rebound if key support levels hold.

👀 Our Strategy Now

We’re dialing back risk exposure for the moment.

This isn’t the time to chase green candles or gamble on meme rallies. With uncertainty high around inflation and rate cuts, we’re watching closely, managing positions, and waiting to see how the rest of the week - especially tariff day - plays out.

Caution is king right now.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Visa Expands Stablecoin Support Across 4 Blockchains
Visa adds PYUSD, USDG, and EURC to its stablecoin settlement platform, now supporting Ethereum, Solana, Stellar, and Avalanche.

ResearchCoin Surges After Coinbase Listing News
ResearchCoin jumps 15% following Coinbase's Base listing announcement, despite conflict of interest concerns over CEO Brian Armstrong.

Circle Brings Native USDC and CCTP v2 to Hyperliquid
Circle is launching native USDC and its latest CCTP protocol on Hyperliquid, enhancing liquidity and replacing third-party bridges.

Dormant Bitcoin Wallets From 2010 Move $30M in BTC
Five Satoshi-era wallets moved 250 BTC after 15 years of inactivity, triggering renewed interest in early-mined Bitcoin holdings.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Coin Bureau – Massive Gains Incoming? Top ETH L2s Ready to Explode! (31.07.2025 Summary)

Nick breaks down Ethereum’s Layer 2 ecosystem and why it could be the next place capital rotates into after ETH’s recent price action.

1. Layer 2 Explained – Optimistic and ZK rollups scale Ethereum by making it faster and cheaper, while preserving security
   

2. Top 5 L2s – Arbitrum, Base, Optimism, UniChain, and ZKSync each offer unique tech and ecosystem growth
   

3. Ecosystem Exploration – Each L2 has portals for discovering DeFi, gaming, RWA, and NFT projects with upside potential
   

4. Token Price Potential – ARB, OP, UNI, and ZK tokens are all still far from their all-time highs, with possible 5x to 10x gains if L2s gain adoption

The video ends on a bullish note, suggesting that L2s are undervalued and well-positioned for growth during the current Ethereum cycle.

Josh Olszewicz – Alt Coins: Needs More Time Season (31.07.2025 Summary)

Josh delivers a macro and technical update, focusing on why altcoins may remain in a holding pattern despite recent activity.

1. Macro Headwinds – Strong economic data and a rising dollar (DXY) present a challenge for risk assets like crypto
   

2. Altcoin Signals – Total2 shows a possible double top; liquidity and stablecoin flows remain flat
   

3. Technical Patterns – Many charts display bearish divergences, weak breakouts, or failed setups
   

4. Market Conditions – Most altcoins, NFTs, and smaller tokens are stuck in consolidation and below key trend levels

Josh takes a neutral-to-cautious stance, recommending patience as market momentum hasn't yet confirmed a full altseason.

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