The current cryptocurrency market has once again entered a period of divergence, with market trends being confusing. Overall, the cryptocurrency market may face downward pressure in the short term, and a significant correction may even occur.

The US economy is underperforming, and the Federal Reserve has not officially begun a rate-cutting cycle. However, just Powell's remarks can trigger significant market fluctuations, and this sensitivity is concerning. The gains of Ethereum and other smaller encryption currencies are not significant, and various positive news and strategies seem to have already been digested, leaving the market lacking new upward momentum.

It is worth noting that the 'WLFI' token related to the Trump family will be launched on September 2, which may have a certain impact on the market. Various signs indicate that the current market bubble could burst at any time.

Some analyses suggest that a decline in Bitcoin's market share usually heralds the arrival of altcoin season. However, the current situation may be different. Although Bitcoin's price has fallen by about $10,000 from its peak, cryptocurrencies like Ethereum and Solana remain at relatively high levels, which may create the illusion that altcoin trends are about to begin.

However, the fact is that most small cryptocurrencies are performing mediocrely, and the overall market lacks vitality. After a brief rise in exchange platform tokens, they quickly fell back, a pattern reminiscent of large holders pushing prices up to sell off. If small cryptocurrencies generally decline next, while Bitcoin remains dominant, it could be the final stage before a significant drop in the entire encryption market.

Overall, Bitcoin may have a small opportunity for a slight increase in the short term, but market risks are accumulating, and investors need to remain vigilant and take profits at the right time. In this uncertain market environment, it is particularly important to act cautiously and control risks.