The cryptocurrency sector has been gaining over the past week amid a positive atmosphere on stock market indices. However, the market still can't be sure, are we in for another 'relief rally' or a reversal of the months-long downward trend? Will digital assets once again return to the favor of investors?
- Bitcoin slipped yesterday from levels above $24,000 and is trading around $23,200. Ethereum has clearly struggled to overcome the $1,750 mark for days, but still remains above the 1,680 mark. The capitalization of the entire cryptocurrency market still remains above $1 trillion;
- The vast majority of smaller cryptocurrencies so-called altcoins have again risen significantly. Leading the way in recent days is Filecoin, which has risen by more than 90% over the past 5 days. Nonetheless, the vast majority of smaller cryptocurrencies are still 80% to 90% below their price points, indicating both considerable upside potential and cautioning against a return of negative sentiment that would cause further waves of supply;
- The first half of August will be full of significant events for the Ethereum blockchain. The success of the 'last straight' tests ahead of the planned September 19 'The merge' will likely determine the price reactions of the second largest cryptocurrency;
- Ethereum's blockchain will undergo a 'Bellatrix' update on August 4, as part of the decisive 'Prater merge'. The most important tests will take place on the Goerli network and will take place from August 8 to 12. Possible problems in the test network may cause the developers to postpone the date of the scheduled September 19 'The Merge' around which the market has built considerable expectations expecting an already 'final' version of Ethereum 2.0;
- Filecoin is a cryptocurrency whose price fell from nearly $150 per token to $5.5 less than a week ago. Despite the massive price volatility, Filecoin's creators are developing the blockchain and creating decentralized competition to the centralized 'cloud computing' created by Amazon Web Services or Microsoft Azure. Blockchain.
- Filecoin announced yesterday a partnership with Harvard University, with which it will work on decentralized libraries that store information. Venture capital firm, Holon Global gave news of the creation of an investment fund that will include Filecoin, Bitcoin and Ethereum;
- In the past, funds such as Sequoia and Andreessen Horowitz have invested in Filecoin, and at the end of May this year reported the creation of a $4.5 billion cryptocurrency fund. Sequoia, in turn, launched a similar, smaller fund in the second half of February, which began a $500 million investment in the cryptocurrency market; the fund's targets included Filecoin. In the past, funds such as Sequoia and Andreessen Horowitz have invested in Filecoin, and at the end of May this year reported the creation of a $4.5 billion cryptocurrency fund. Sequoia, in turn, launched a similar, smaller fund in the second half of February, which began a $500 million investment in the cryptocurrency market; the fund's targets included Filecoin.
The Market Realized Gradient indicator known as MRGO on a 28-day interval suggests that the bears are continuing to weaken. The instrument is designed to help determine which increases are only of 'speculative value' and signify a short-term trend improvement, and which are due to high capital inflows. The indicator juxtaposes the market price and the 'Realized price' i.e. the average purchase price of Bitcoin on the blockchain. Last week's price breakout confirmed that the scales are still tipping in favor of the market bulls. Still, maintaining momentum may pose a challenge for the demand side facing increased volatility and risk in global markets. Source: Glassnode
The chart shows the so-called base cost of long-term investors (LTH), i.e. investors who do not sell Bitcoin for at least 155 days. The base cost of LTH addresses cyclically returns above the so-called Realized Price i.e. the average purchase price on the blockchain, which can be determined by the base cost of the rest of the market. In order for the 'Realized price' for long-term investors to increase, they must purchase above their own average or the tokens purchased must exceed the threshold of 155 days i.e. and be among the pool belonging to LTH. Such situations even during a bull market are very rare and indicate a huge level of market oversold. The duration of previous such phenomena ranged from 248 to 575 days. Given that it is 23 days in the current cycle, the market can still hold lower. This means that, at the moment, long-term 'hodlers' are the 'sufferers' of the recent declines although, looking at the cyclicality, they obtained significant rates of return and bought Bitcoins 'cheaper' than the market average. Source: Glassnode
The Market Realized Gradient indicator known as MRGO on a 28-day interval suggests that the bears are continuing to weaken. The instrument is designed to help determine which increases are only of 'speculative value' and signify a short-term trend improvement, and which are due to high capital inflows. The indicator juxtaposes the market price and the 'Realized price' i.e. the average purchase price of Bitcoin on the blockchain. Last week's price breakout confirmed that the scales are still tipping in favor of the market bulls. Still, maintaining momentum may pose a challenge for the demand side facing increased volatility and risk in global markets. Source: Glassnode
The chart shows the so-called base cost of long-term investors (LTH), i.e. investors who do not sell Bitcoin for at least 155 days. The base cost of LTH addresses cyclically returns above the so-called Realized Price i.e. the average purchase price on the blockchain, which can be determined by the base cost of the rest of the market. In order for the 'Realized price' for long-term investors to increase, they must purchase above their own average or the tokens purchased must exceed the threshold of 155 days i.e. and be among the pool belonging to LTH. Such situations even during a bull market are very rare and indicate a huge level of market oversold. The duration of previous such phenomena ranged from 248 to 575 days. Given that it is 23 days in the current cycle, the market can still hold lower. This means that, at the moment, long-term 'hodlers' are the 'sufferers' of the recent declines although, looking at the cyclicality, they obtained significant rates of return and bought Bitcoins 'cheaper' than the market average. Source: Glassnode
