Bitcoin’s Growth Stalls Worldwide, While Ethereum’s Potential for Surge Rises, According to Analysis
A recent report from Copper Research has highlighted the current state of Bitcoin’s price movement, which has been affected by global events, while also pointing out that Ethereum’s limited supply could potentially trigger a price surge.
Bitcoin, symbolized as BTC, has been resilient in the face of the German government’s sale of 40,000 coins. Despite this, the overall market conditions have proven to be challenging, wiping out the gains achieved since Bitcoin reached its all-time high back in March.
The report indicates that Bitcoin is experiencing reduced buying activity due to increased market volatility caused by various global events such as the U.S. election, UK riots, tensions in the Middle East, and shifts in Japanese central bank policy. Although market participants initially seized the opportunity to buy during the German sell-off, the recent volatility has dampened interest in risk assets, leading to minimal buying activity for Bitcoin.
Following the unexpected supply influx from Germany, the markets have essentially shown no net additions. Since Bitcoin’s peak in March, ETFs have only added 40,000 coins, and prices are currently hovering within the same range observed during the German sell-off period, according to the report.
Shifting focus to Ethereum, symbolized as ETH, the report emphasizes that the supply dynamics of Ethereum are also being closely scrutinized. With the adoption of Layer-2 solutions, Ethereum has returned to an inflationary state since mid-April. However, a significant portion of ETH is currently locked into smart contracts, leading to a limited circulating supply that could potentially create upward price pressure by the end of the year.
As of August 12, approximately 66% of Ethereum addresses are currently in profit, with ETH trading slightly above $2,600. This marks an increase from the previous week when only 63% were profitable. Nevertheless, this figure remains lower than the 75% in profit when ETH was trading above $3,159 earlier in the month, with around 3.59 million addresses requiring a price increase to between $2,679 and $2,755 to become profitable.
Furthermore, the report highlights a surge in tokenized assets, noting remarkable growth in this sector with blockchains adding over $1 billion in tokenized government products this year. McKinsey has projected that the market value of tokenized real-world assets could potentially reach up to $4 trillion by 2030, driven by factors like mutual funds and bonds. Notably, BlackRock’s BUIDL product has significantly contributed to this growth, with other products like Franklin Templeton’s BENJI 0.6 and Ondo Finance’s USDY and USDG also gaining substantial traction.
