BTC breaking above $62,000 does not necessarily indicate that the market is starting to rebound or recover. Yesterday, several positive news developments influenced market trends:
- Macroeconomic Data: The U.S. Department of Labor released the jobless claims data for the week, which came in lower than expected. This alleviated some concerns about a U.S. economic recession, leading to a slight rebound in the U.S. stock market.
- Cryptocurrency-Related News:
- According to TASS, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia. The law introduces new concepts, including digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals organizing mining pool activities.
- Cointelegraph reported, citing informed sources, that Morgan Stanley, the largest wealth management firm in the U.S., authorized its 15,000 financial advisors to start recommending Bitcoin exchange-traded funds (ETFs) to clients beginning on August 7th.
While these market developments have further driven the market rebound, the trading data reveals that during this oversold rebound, the overall Bitcoin holdings did not show a significant increase. As prices rebounded, the holdings continued to decrease, indicating that the price rebound was caused by short covering. This type of holding structure cannot support a full market reversal or recovery.
In addtion, The news that Brazil has approved the world's first Solana spot ETF has indeed had a positive impact on Solana's price, providing some support for the short-term rise in SOL's
Ryan Lee, Chief Analyst at Bitget Research
