At the beginning of the week, the cryptocurrency market tried to strengthen the upward dynamics, but eventually moved to a correction, which continues now: BTC quotes are trading around 64300.00 (−5.6%), ETH is at 3140.00 (−3.6%), USDT is held at 0.9995 ( 0.03%), BNB is near 570.00 (−1.9%), and SOL is around 161.00 (−13.0%). By the end of the week, the total market capitalization dropped to 2.28 trillion dollars, and the share of BTC on it was 55.45%.

The market participants drew attention to the statements made by the US presidential candidate from the Republican Party, Donald Trump, on Saturday at the Bitcoin 2024 conference in Nashville. The leader of the presidential race said that if he is elected, the government will stop selling the BTC it currently has and transfer them to a strategic reserve. However, experts have already expressed doubts about this plan: the fact is that of about 213.0 thousand BTC controlled by the authorities, 94.0 thousand were seized in connection with the hacking of the Bitfinex exchange, so it may not be easy to finally turn them in favor of the state. Trump also promised to make the country the "crypto capital of the planet", promote the development of the digital industry and replace the current chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler with the post office. The rhetoric of the politician briefly allowed "digital gold", and almost all altcoins with it, to strengthen their positions, but then a pullback began, caused by a number of negative factors for the market.

So, on Tuesday, the management of the bankrupt Mt.Gox crypto exchange transferred another tranche of 47.0 thousand BTC, worth about 3.02 billion dollars, to trading platforms. They are currently being distributed among creditors and are likely to be largely sold out. Also, pressure on the position of digital assets was exerted by increased geopolitical tensions in the Middle East after the death of the leader of the political bureau of the Palestinian Hamas movement, Ismail Haniyeh. Fearing an escalation of the military conflict and the growth of global economic instability, investors began to abandon alternative assets in favor of a more traditional means of saving which is the US dollar; however, the same decline in the cryptocurrency market was observed last year after the offensive of Israeli troops in the Gaza Strip. In addition, cryptocurrency quotes were not supported by the latest decisions of the US Federal Reserve: on Wednesday, officials kept the interest rate at 5.50%, but gave investors a clear signal that it would be lowered in September in case of a slowdown in inflation. These positive news were ignored by the cryptocurrency market, which continues an active downtrend, and experts see the reason for this in the fact that the September easing of monetary policy has already been fully taken into account by investors, they only expect further actions from the regulator, complete clarity regarding which is missing. It is worth noting that most analysts associate the current dynamics of quotations with a natural correction before a new growth, since medium-term fundamental factors remain positive. So, investors continue to hope for a systemic easing of monetary policy by the US Federal Reserve, believing that the financial authorities will not limit themselves only to the September rate cut, but will also adjust it once or even twice this year, which will significantly increase pressure on the US currency.

The recent launch of spot Ethereum ETFs should contribute to the growth of institutional investments in cryptocurrencies. According to BlackRock analysts, large financial institutions such as Morgan Stanley, Wells Fargo, and UBS are currently exploring the possibility of adding them to the model investment portfolios that are offered to clients. This work should be completed by the end of the year, after which the market will receive additional support. Experts also note that Donald Trump's rating may also encourage the US presidential candidate from the Democratic Party, Kamala Harris, to soften her position on cryptocurrencies and companies in the technology sector, which will also have a positive impact on investor sentiment.

Next week, most of the largest digital assets may begin to consolidate or resume growth.