Matrixport: Bitcoin breaks $100000 again, priority still given to price differential options

BlockBeats news, on May 9th, Matrixport shared its weekly market report as follows: Over the past 18 months, global monetary policy has greatly altered the flow of capital into digital assets. As interest rates remain high, traditional investors are reassessing their risk allocation, making policy communication with the Federal Reserve particularly crucial. The minutes of the November FOMC meeting, released on December 7, 2024, broke the market's expectation of four interest rate cuts in 2025 and lowered the expectation of interest rate cuts to two. On chain data reveals the degree of market differentiation. The market dominance of Bitcoin (calculated as a percentage of the overall cryptocurrency market capitalization) has risen from 49% in the early days of the ETE era to the current 64.5%, a level not seen since the DeFi craze in 2021. This trend brings the highest risk adjusted return among various core indicators of digital assets, reflecting the preference of funds for high-quality assets. Retail investor sentiment remains low, with trading volumes for both CEX and DeFi protocols dropping to multi-year lows. Due to the lack of a clear market mainline - neither new DeFi disruptive applications nor significant breakthroughs in Laver-2 technology or widespread meme craze - retail investors generally choose to continue watching. The summer season in the northern hemisphere usually further exacerbates this trend, as the holiday season leads to a decrease in trading activity. Since December 2024, the discussion volume of topics related to Shanzhai Coin on social media has decreased by over 40%, while discussions related to Bitcoin remain high, reflecting the market's continued interest in Bitcoin as a macro hedge asset. In the absence of significant catalytic factors, the sentiment driven upward trend of Shansai Coin is difficult to form, Given the adverse effects of technical, macro, and market structural factors on altcoins, the most clear tactical stance at present is to continue maintaining a long position in Bitcoin through spot or perpetual futures, and using Shansai perpetual futures as a hedging tool. The funding rate for perpetual contracts of altcoins remains low.