PANews reported on July 16 that QCP Capital, a Singapore-based crypto investment firm, said that Bitcoin’s rally paused after breaking through $120,000, and profit-taking funds suppressed its upward momentum. It eventually found a local bottom at $114,000, and buying emerged to support prices. As the summer vacation approaches, trading volume in traditional financial markets slows seasonally. The U.S. stock market has stagnated since early July, and the sideways trend may be a signal of weak growth. The stock market is indifferent to adverse factors such as increased basic tariffs and new threats against countries that buy Russian oil. It is worth noting that the recent rise in the S&P 500 index is mainly driven by Nvidia, whose stock price continued to hit record highs in July.

The US dollar index has fallen 10% this year, driving strong performance of dollar-denominated assets, but the actual price after adjustment is still lower than the previous high. The risk of a sharp rebound in the US dollar has increased, which may lead to a pullback in risky assets. The US inflation rate has stagnated at 2.5%, and the market is vulnerable to external shocks. The Fed's interest rate cuts have brought uncertainty to the timing of the policy shift. The agency remains structurally bullish on Bitcoin. If it pulls back to around $110,000, it may provide a more solid foundation for the consolidation of the current round of gains. Ethereum has also performed strongly due to SBET's measures and corporate holdings.