On August 4, according to The Block, Vincent Liu, Chief Investment Officer of Kronos Research, stated that under the intertwining of macroeconomic uncertainty and institutional buying, the current market presents a "cautiously optimistic" sentiment. The Fear and Greed Index is trending towards "greed", and whale buying and rate cut expectations are driving traders to reallocate risk assets.
Investors are focusing on the US July CPI data to be released on August 12, which will serve as a key indicator for the next round of rate hikes or cuts. Although the Federal Reserve maintained interest rates unchanged at the July FOMC meeting, Powell indicated that a September rate cut still depends on economic data. However, CME Fed Watch data shows that the market expects over 80% probability of a 0.25 percentage point reduction.
Additionally, Liu believes that the SEC's "Project Crypto" may benefit the market in the medium to long term. The project will reduce regulatory uncertainty, promote DeFi growth, and enhance market confidence by clarifying token classification and introducing DeFi innovation exemption mechanisms.
