Recently, the cryptocurrency market has experienced a series of dramatic fluctuations, mainly influenced by policy changes and international situations. Hong Kong's latest introduction of the "Stablecoin Regulation" has sparked a market rush for compliant assets, leading to a surge in demand for stablecoins such as DAI and FDUSD, resulting in a significant rise in their prices and on-chain volume.

At the same time, policy adjustments from the United States have also brought significant impact to the market. The tariff policy originally scheduled to take effect on August 1 has been postponed to August 7. This news, combined with the tense situation in the Middle East, led to a rapid decline of Bitcoin after briefly touching $118,500. Within 24 hours, over 100,000 traders faced liquidation, Bitcoin fell below $118,000, and Ethereum dropped below $3,700, causing market sentiment to fluctuate like a roller coaster.

However, large institutional investors seem to maintain an optimistic attitude towards the market. In July, the funds flowing into the encryption market through ETFs reached $4.2 billion, mainly concentrated in Ethereum and staking tokens. It is worth noting that Tesla still holds Bitcoin worth over $1.2 billion, with no signs of reduction. The behavior of these large investors suggests that they may see the current market correction as a good opportunity to increase their holdings.

The changes in the geopolitical situation have also brought additional uncertainty to the market. Rumors of Iran possibly taking countermeasures against Israel led to a 2.3% rise in gold prices. Although Bitcoin remained stable at one point, it ultimately fell under the influence of overall market sentiment. However, large investors (commonly known as "whales") seem to have seized the opportunity, purchasing 18,000 Bitcoins in a single day, setting a recent record.

Currently, the market's focus has shifted to the upcoming U.S. tariff policy on August 7. The final direction of this policy, as well as the countermeasures that the European Union may take, will be key factors influencing the short-term movements of the encryption market. In this complex and changing market environment, investors need to remain vigilant and closely monitor policy trends and developments in international affairs.