Recently, the Crypto Assets market has experienced significant Fluctuation, with alts performing poorly, sparking discussions in the market. Data shows that currently only 37% of alts have outperformed Bitcoin, and the alt season index has dropped to 37 points, indicating that funds seem to be gathering towards Bitcoin.

However, this phenomenon does not mean that the market trend is about to end. The record high on-chain transaction volume and continuous inflow of stablecoins indicate that market participation remains active. The current situation may be a reshuffle of the market by the main funds, preparing for future market conditions.

Factors affecting the performance of alts include the strong capital absorption of Bitcoin, lack of new market narratives, and uncertainty in the regulatory environment. However, a market turnaround may be approaching. It is expected that between August and September, a spot ETF for Ethereum could introduce approximately $5 billion in incremental funds. At the same time, the Federal Reserve may lower interest rates in September, which will release more liquidity. From a technical perspective, if the ETH/BTC ratio can stabilize above 0.048, it may trigger programmatic buying.

In terms of investment strategy, it is recommended to primarily allocate positions to Bitcoin and Ethereum. At the same time, about 20% of funds can be used to speculate on projects with pressure resistance such as RWA, L2, and emerging public chains. The entry timing can adopt a phased approach. Aggressive investors may focus on the breakthrough of the ETH/BTC ratio, while conservative investors can wait for the alt season index to return above 50. Additionally, using Bitcoin put options to hedge risks is also a strategy worth considering.

It is worth noting that recent performances of the US stock market and macro factors such as tariff policies have had a certain impact on Ethereum, leading to fluctuations in the short term. However, the market generally expects a favorable outlook due to the anticipated interest rate cuts in September after mid-August. In the long run, the bull market trend in the Crypto Assets market remains clear.

The Crypto Assets market is ever-changing, and investors need to closely monitor market trends, analyze rationally, and make cautious decisions.