Matrixport: Crypto Market Enters Summer Consolidation Phase, Beware of Leverage Liquidations and Momentum Exhaustion Risks

According to ChainCatcher, Matrixport's latest report indicates that the crypto market is entering a seasonal cooling phase, with consolidation expected to continue until August. Technical indicators show that both Bitcoin and Ethereum are in overbought territory, posing a short-term correction risk. The conclusion of "U.S. Crypto Week" also signals that market momentum may have peaked.

The White House's cryptocurrency policy report, originally scheduled for release on July 22, has been postponed to July 30. It is not expected to contain substantive policy measures, as its release coincides with Congress's summer recess. In addition, the government is currently prioritizing the "GENIUS Act," which centers on stablecoins and links them to U.S. Treasury bonds, reflecting the rising strategic importance of digital assets within the broader macro-financial structure.

Matrixport warns that as the summer lull approaches and market momentum weakens, leveraged long positions face liquidation risks—especially as Ethereum open interest has surged from $14 billion to $25 billion, and rising funding rates have increased holding costs. In the absence of sustained upward momentum, confidence may falter, and the market is likely to enter a dominant summer consolidation phase.