Matrixport: The current Bitcoin rally is being driven by continued inflows into spot ETFs and corporate allocation demand, with the market benefiting from multiple macro and regulatory tailwinds

On July 11th, Matrixport stated in an article that Bitcoin has reached a new all-time high. In contrast to previous market trends, this round of growth was not fueled by leverage, and surprisingly, retail investor sentiment remained calm. Meanwhile, ETF funds continue to flow in steadily. The Federal Reserve is facing continuous political pressure, and key CPI data will be released in the coming days. July, known as Bitcoin's strong season, combined with the arrival of Washington's "Crypto Policy Week," is experiencing a rare resonance of macro and regulatory positive news. Against this backdrop, the "GENIUS Act" is accelerating its legislative process in Congress, which may have a significant impact on stablecoin regulation and the adoption of digital assets. The FOMC meeting minutes on June 17-18 showed that Federal Reserve officials generally tend to start rate cuts, although there are still some internal differences. On the day the minutes were released, Bitcoin rose by 2%. Currently, the market widely expects two rate cuts this year, and the first cut may occur in September. If next week's inflation data does not show a significant rebound, Powell will face even greater market and political pressure and must provide a clear explanation for his continued hawkish stance. This round of Bitcoin's rise is significantly different from the common "retail leverage top" seen at previous highs. Overall leverage usage is limited, and the funding rate has only slightly turned positive. The real driving force comes from continuous inflows into spot ETFs and corporate demand for allocation. Open interest has risen moderately along with the price, and there has not been a significant influx of leverage long positions yet. Although it has reached a new all-time high, most traders are lightly positioned, and the market is far from being overcrowded. Currently, ETF cumulative net inflows have reached $49 billion; the policy landscape is shifting towards easing, and CPI is expected to remain moderate; on the regulatory front, the "GENIUS Act" is also expected to achieve a significant breakthrough next week. Combined with the seasonal advantage of July, the market is experiencing a rare multiple positive news resonance. However, in terms of position structure and price trends, the market has not fully priced in the aforementioned positives, and there is still room for further development in the future.