July 8 Cryptocurrency Market Update

 

July 8 Cryptocurrency Market Update

Date: Jul. 08, 2021, 04:23 PM KST

[Bitcoin Decline]

As of 6 a.m. this morning, Bitcoin was trading at $34,000, but still down 1% from last week. Ether outperformed Bitcoin, gaining about 3% last week.

Cryptocurrency asset management company 21Shares wrote in a newsletter, “We believe Ethereum and its burgeoning ecosystem will be the growth catalyst for the rest of the year… Recently, Ethereum hit a two-week high in anticipation of an upcoming upgrade called EIP 1559 potentially going live on Aug. 4, which will make Ethereum a scarce asset by reducing the circulating supply of Ethereum at every transaction.” 

Goldman Sachs also recently published a report stating that Ether’s use cases currently possess the highest “potential” as it is the most popular development platform for smart contracts.

CEO of Delta Exchange Pankaj Balani wrote, “Bitcoin continues to trade choppy and though we have seen an upward bias in the last few days it will take some work for BTC to break above the $42,000 mark… Any weakness in the broader markets or reduction in liquidity can cause sharp down moves in Bitcoin, and we continue to see this reflected in options data as puts trade at a premium to calls for July and August expiry.”

Other analysts expect Bitcoin to level out as trading volumes continue to drop since the May sell-off. 21Shares wrote that they “expect speculation in the spot and derivatives markets to stabilize for the foreseeable future, which will transpire into lower price swings.”

Although trading activity has been relatively quiet over the past month, institutional investors are actively evaluating the value of cryptocurrency as an alternative to traditional assets.

Florian Ginez, associate director of quantitative research at Wisdom Tree, said, “We have seen more large institutions inquiring about the space, including large banks and asset managers, as well as pension funds and even insurance companies… Most of these [institutional] actors are still very early in their journey to get the green light to start investing in bitcoin, but this shows large institutions are keeping their eyes open.”

[New York Stock Exchange]

The New York Stock Exchange (NYSE) raised as the results of the June Federal Open Market Committee (FOMC) meeting did not stimulate concerns about premature tightening.

The Dow closed at 34,681.79, up 104.42 points (0.30%). The Standard & Poor's (S&P) 500 Index rose 14.59 points (0.34%) to 4358.13, and the tech-centered Nasdaq Index closed at 14,665.06, up 1.42 points (0.01%) from the previous day.

The Nasdaq Composite rose for the fourth day in a row, hitting an all-time high. The S&P 500 also closed at an all-time high and the Dow turned higher in just one day.

[Expert Opinion]

According to CoinTelegraph, on-chain analyst Willy Woo predicted that the market could experience a supply shock as long-term holders continue to cut supply while Bitcoin price continues to consolidate in the $30,000-$40,000 range.

He noted that the possibility of a Bitcoin supply shock might push more Bitcoin out of circulation.

On the other hand, while the withdrawal of Bitcoin by long-term holders increases the possibility of a supply shock in the market, expectations are also rising that the so-called ‘hodling’ mentality that Bitcoin will not be sold for the time being will lead to a price increase.

According to CoinDesk, from a technical point of view, Bitcoin is likely to break out of the $30,000-$40,000 price range held over the past seven weeks in the near future.

"We expect buyers to step in above the 50-day MA,” said Katie Stockton, founder and managing partner of Fairlead Strategies. She continued, "A breakout above the 50-day MA would indicate a test of $44,000-$45,000 resistance."

Disclaimer

: This feed is intended to convey more information only and does not represent the views of KOK PLAY. All or part of the feed content does not guarantee or promise the completeness of the document. Please check the relevant information directly.