Ethereum’s Quiet Rise in Popularity in the Crypto Market
The cryptocurrency market saw a 2.2% increase in the past 24 hours, pushing its total value to $2.14 trillion. This surge marked a fresh attempt to break into the upper half of the trading range from the previous month, following a sell-off last week. Favorable macroeconomic conditions, including slowing producer prices and a key rate cut in New Zealand, supported risk appetite during this period.
Bitcoin, hovering near the $61K mark, continued to test the 50-day moving average and gained 2.5% in the last 24 hours. There is a perceived strong correlation between Bitcoin, the broader crypto market, and stock market dynamics. Market data indicating the Federal Reserve’s potential easing of monetary policy could embolden bullish investors to overcome the recent downtrend, potentially propelling Bitcoin towards $66K. However, the prevailing scenario still leans towards a new sell-off momentum, with a possible retreat to $55K.
Taking Ethereum as a case in point, the performance of ETFs in their early stages can be observed. Ethereum outperformed other altcoins, rising by 2.8% to $2730. While vulnerable to equity sell-offs, ETHUSD stands to benefit significantly from being included in the investment portfolios of managers seeking diversified assets.
In terms of market analysis, BRN exercised caution regarding Bitcoin’s future trajectory and advised incrementally increasing positions during pullbacks. Expectations point to continued volatility throughout August and September, with Bitcoin fluctuating between $49K and $69K.
FalconX speculated that Bitcoin might break out of its current range due to the anticipated Fed rate cut and the upcoming US election. A sustained rally in alternative cryptocurrencies hinges on improved liquidity narratives and trends, along with the alleviation of potential selling pressure from early investors.
Recent news developments included the US SEC accusing NovaTech of orchestrating a Ponzi scheme that amassed over $650 million in crypto assets from more than 200,000 global investors. Additionally, Japanese firm Metaplanet disclosed the acquisition of 57.1 BTC for 500 million yen (~$3.3 million), boosting its total Bitcoin holdings to 303,095 BTC ($18 million).
Arkham highlighted that Custodian BitGo facilitated the transfer of 33,140.4 BTC (~$1.97 billion) linked to the defunct Mt. Gox exchange. This transfer marked the final phase of distributing funds to creditors through five collaborating platforms. Notably, the addresses associated with the collapsed exchange still retain 46,164 BTC valued at $2.75 billion.
Furthermore, the liquidators of cryptocurrency hedge fund Three Arrows Capital (3AC) demanded at least $1.3 billion from Terraform Labs, the entity behind the Terra ecosystem. The collapse of Three Arrows Capital, alongside Terra and other major crypto firms in 2022, underscored the challenges faced by prominent players in the industry.
