Victory Securities: Due to the impact of the U.S. stock market decline, Bitcoin may continue to fluctuate, but resilience is still evident in the virtual asset field

Zhou Lele, Deputy Chief Operating Officer of Shengli Securities, analyzed in an article that the virtual asset market has reached the lower limit of its fluctuation trend. Last week, Bitcoin's weekly price fell by about 4.25%, and Ethereum fell by about 5.29%. The decline in virtual assets is mainly due to the impact of U.S. economic data, but from within the virtual asset field, it still shows resilience. In terms of capital flow, approximately $706 million flowed out from off-exchange Bitcoin ETFs last week and around $98 million flowed out from Ethereum ETFs last week. Despite this capital outflow, if market sentiment remains positive, it may only be a temporary adjustment rather than a change in long-term trends; The amount of Bitcoin contracts held on exchanges is at a historical high which usually means that capital continues to stay in the field showing traders' firm commitment to the market. This dynamic could indicate participants' acceptance of current price levels and signs for optimism towards medium-to-long term prospects after bull markets.

Looking at spillover effects: The average market value ratio between top 10% listed companies in America versus other 90% listed companies has reached twenty-eight times - with leading companies continuously concentrating their power - suggesting that internal rotation within US stocks might soon unfold leading to further declines in virtual assets prices.

During this week's fluctuations in the virtual asset market both Bitcoin and Ethereum experienced downturns but this does not necessarily predict changes in long-term trends as volatility is inherent characteristic of these markets; investors should pay more attention to fundamental factors and long-term values instead.
As these markets mature we can perhaps anticipate greater stability and predictability.