Market Picture
The cryptocurrency market added 2.2% in the last 24 hours to reach $2.14 trillion, a fresh attempt to climb into the upper half of last month’s trading range from where last week’s sell-off was intensified. Over the past 24 hours, the macroeconomic background has been favourable for risk appetite thanks to slowing producer prices and New Zealand’s key rate cut.
Bitcoin remains at arm’s length from the $61K level, continuing to test the 50-day moving average and adding 2.5% in 24 hours. We assume a high correlation between Bitcoin, the entire crypto market and the dynamics of the stock market. Data supporting the Fed’s imminent easing of monetary policy may encourage the bulls to overcome the short-term downtrend and give the green light to rise all the way to $66K. Nevertheless, a new sell-off momentum is still the prevailing scenario, with a potential pullback to $55K.
With Ethereum as an example, we can see how ETFs perform in the early stages. The coin is recovering better than other altcoins, adding 2.8% on the day to $2730. ETHUSD is vulnerable to equities sell-offs but benefits more from inclusion in portfolios of investment managers seeking broad diversification.
News Background
BRN is cautious about Bitcoin’s outlook and recommends using the pullback to increase positions gradually. Volatility will continue in August and September, with BTC fluctuating between $49K and $69K.
Bitcoin may leave the established corridor due to the upcoming Fed rate cut and the US election, FalconX believes. A sustained rally in altcoins will require improved liquidity narratives and trends, as well as the removal of potential selling pressure from early investors.
The US SEC accused NovaTech’s founders and promoters of organising a Ponzi scheme that raised more than $650 million in crypto assets from more than 200,000 investors worldwide.
Japanese public company Metaplanet announced the purchase of 57.1 BTC for 500 million yen (~$3.3 million), bringing the company’s total Bitcoin holdings to 303,095 BTC ($18 million).
As noted by Arkham, Custodian BitGo moved 33,140.4 BTC (~$1.97 billion) related to the collapsed Mt. Gox. It is the last of five platforms working with a trustee to distribute funds to creditors. The addresses of the collapsed platform still hold 46,164 BTC worth $2.75 billion.
The liquidators of cryptocurrency hedge fund Three Arrows Capital (3AC) have demanded at least $1.3 billion from Terraform Labs, the company behind the Terra ecosystem. One of the industry’s most prominent hedge funds collapsed shortly after Terra and several other major crypto companies collapsed in 2022.
