August 1st Cryptocurrency Market Analysis: A Crazy Start to August! Bitcoin Drops Below 117,000, Fed's Statement Triggers Volatility in the Crypto Space

CN
22 hours ago

Tracking real-time hotspots in the crypto world and seizing the best trading opportunities, today is Friday, August 1, 2025, I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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Today is the first day of August, let’s welcome Crazy August! The US stock market closed on Thursday, with the Dow Jones initially down 0.74%, the S&P 500 down 0.37%, and the Nasdaq Composite slightly down. Microsoft (MSFT.O) rose 3.9%, closing with a market value that failed to stabilize at $4 trillion. According to CME's "FedWatch": the probability of the Federal Reserve keeping interest rates unchanged in September is 61.8%, while the probability of a 25 basis point rate cut is 38.2%. The probability of the Federal Reserve maintaining interest rates in October is 39.4%, with a cumulative probability of a 25 basis point rate cut at 46.8% and a cumulative probability of a 50 basis point rate cut at 13.9%. The decision on interest rates has not changed, but the expectations of the entire market have been completely overturned. A few strong words from Powell extinguished hopes for a rate cut in September. All previous optimistic sentiments seem to have vanished overnight. The crypto market is down across the board, with Bitcoin and Ethereum quickly dipping, while our short positions set up in the evening have successfully met expectations. Stay tuned to Yibo for timely updates.

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After Bitcoin fluctuated and rose to around 118,848 during the day, it began to decline. In the evening, the US stock market tested a low of 117,776 before rebounding to 118,823, facing pressure again. As of now, it has dropped to a low of 116,053. On the four-hour level, the price shows an orderly downward channel, with rebound highs gradually decreasing, indicating weak bullish momentum. Each rebound has failed to break through key resistance, and the bears are clearly in control, with a complete downward structure. In terms of technical indicators, the fast and slow lines are about to form a death cross at a low level, and the indicator signals resonate with the price trend, accumulating bearish momentum. On the hourly level, the Bollinger Bands are showing a contracting and closing state, indicating that the market is in a short-term adjustment phase, with volatility temporarily narrowing. It is recommended to continue with a bearish outlook, closely monitor the breakthrough of key resistance levels, and wait for confirmation of trend acceleration signals before positioning accordingly.

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Ethereum surged strongly to the 3,876 level during the day but faced pressure and significantly retraced in the evening due to news and the decline of US stocks. As of now, it has fallen back to the 3,708 level. On the four-hour level, it has shown three consecutive bearish candles, with the price once again below the middle band. After nearly touching the lower band, it rebounded. Although the price returned to the fluctuation range in the morning, the technical indicators still indicate a downward trend, which has not changed. The short-term market volatility may further narrow, and the bearish trend remains evident. Tonight, there will also be non-farm payroll data released, and market sentiment is leaning towards caution! This pattern usually indicates an energy accumulation process, and after the adjustment ends, there is a high probability of a trend breakout.

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If you are feeling lost—don’t understand the technology, don’t know how to read the market, don’t know when to enter, don’t know how to set stop losses, don’t understand take profits, randomly increase positions, get stuck while trying to catch the bottom, can’t hold onto profits, miss out on opportunities… these are common problems for retail investors. But don’t worry, I can help you establish the correct trading mindset. A single profitable trade is worth a thousand words; repeatedly losing is not as good as finding the right direction. Instead of frequent trading, it’s better to strike precisely, making each trade more valuable. If you need real-time guidance, you can scan the QR code at the bottom of the article to follow my public account. The market changes rapidly, and due to the timeliness of reviews, subsequent trends will be based on real-time layouts. I look forward to moving steadily forward in the market with you.

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