Matrixport: The cryptocurrency market has entered a summer consolidation phase, beware of the risks of leveraged liquidations and momentum exhaustion

ChainCatcher news, Matrixport's latest report indicates that the crypto market is entering a seasonal cooling phase, with a consolidation trend expected to last until August. Technical indicators show that both Bitcoin and Ethereum are in an overbought state, posing a risk of a pullback in the short term. The end of "U.S. Cryptocurrency Week" also suggests that market momentum may have peaked.

The cryptocurrency policy report originally scheduled for release by the White House on July 22 has been postponed to July 30, and it is expected to lack substantial policy content due to its timing being close to Congress's summer recess. Furthermore, the government is currently prioritizing the "GENIUS Act," which focuses on stablecoins linked to U.S. Treasury bonds, reflecting the rising strategic position of digital assets in the macro-financial structure.

Matrixport warns that as the summer lull approaches and market momentum weakens, leveraged long positions will face liquidation risks, especially as Ethereum's open contracts surged from $14 billion to $25 billion, while the funding rate increase has also raised holding costs. In the absence of sustained upward momentum, confidence may waver, and the market will enter a dominant summer consolidation phase.