Matrixport Flags Summer Consolidation After Crypto Week Surge

Key Points

1. Matrixport projects a consolidation phase for the crypto market through August following 'Crypto Week,' noting Bitcoin's technical ceiling at $122,000.

2. Open interest in Ethereum futures rose from $14 billion to $25 billion, but funding rates remained stable, suggesting cautious market sentiment.

3. The firm expects continued upward price action but warns of potential unwinding of leveraged trades due to higher carry costs in the absence of fresh catalysts.

4. Attention has shifted to the GENIUS Act, which focuses on stablecoin regulation, as the market enters a quieter summer period with reduced momentum.

5. Matrixport does not anticipate substantive new policy direction from upcoming documents, emphasizing the importance of regulatory developments like the GENIUS Act.