Ryan Lee, Chief Analyst at Bitget Research
The issuance of stablecoins by institutions can indeed be seen as one of the signals that institutional users are bullish on the crypto market. However, the impact of stablecoins on the market is long-term, with very limited short-term effects. For example, although the price of BTC dropped from $64,000 to the current $59,000 in August, the total market capitalization of stablecoins increased by $1.6 billion, indicating that institutional users are still optimistic about the market’s future. The short-term correction risk is mainly due to other factors.
The main factors currently affecting BTC's performance are:
- Macroeconomic Data Release: One reason for the recent decline in BTC prices is that the U.S. is set to release the Producer Price Index (PPI) and Consumer Price Index (CPI) for July on Tuesday and Wednesday this week. Generally, before such data is released, there is a risk-averse sentiment in the market, leading to short-term downward pressure.
- Global Market Disturbances: The rebound in the U.S. capital market has been limited, currently showing short-term pressure, which affects the overall valuation of risk markets.
