$BTC 24 Hour High $41,968
$BTC 24 Hour Low $39,540
$ETH 24 Hour High $2687
$ETH 24 Hour Low $2523
Happy Monday from HKbitEX! While I believe we’re all happy with the recentcrypto market rally, there remain some uncertainties on the current market momentum, with either a short-term Retracement or a full Reversal to regain the bullishness. Apart from the numbers, another hidden risk that we should always bear in mind is the regulatory uncertainty. In addition to the increasing regulatory scrutiny towards Binance, Bloomberg has also announced news of a potential investigation towards the largest stable coin – Tether - and the rising regulatory concern towards the crypto lending market, in general. This sounds like it could be worrying to investors, but looking at it another way: there may still be immaturity within the crypto market, but things are already moving in the right direction with regulators and lawmakers increasing their knowledge. We are seeing continuous interest from traditional investors day by day. So, practice a bit more patience, control your risk while you believe in this new asset class, always set your stop-loss and as I always say - stay away from leveraging.
The $BTC and $ETH market
$BTC has closed 10 consecutive daily green candles for the 1st time since January 2021 (let’s consider it as 10 even though there was one red in between), and successfully broke the $40k resistance level, continuing to stand above there for a few days. In addition, BTC’s climb back to the $49k level, has meant that it outperformed most of the tokens last week. However, a lack of clear momentum has led to a short-term pull-back, as seen from its downward trending resistance line (sitting beneath the $40k level over the weekend). Looking at the daily chart, $BTC is now trading near its critical 100 MA, and it needs to hold above the 40k level to regain its bullish trend, otherwise leading to another retest of the $38k support range if it fails to do so. At the time of writing, $BTC is trading at $39,760 with $42k as its next major resistance level and $38k as its next key support level.
$ETH-wise, the second largest cryptocurrency recorded a 16.6% growth over the week, hitting a high of $2,698 before pulling back on Sunday. The recent surge was believed to be a result of the upcoming London upgrade (EIP-1559), which would make $ETH a deflationary crypto asset, as well as a restructuring of the transaction fees to be more stable. We also believe that the recent boom in NFTs and the GameFi space has been another catalyst for the growth of the $ETH price. Despite Sunday’s consolidation, $ETH has clearly outperformed $BTC over the week, with the $ETH/$BTC level climbing back to 0.064 from the recent 0.057 low. At the time of writing, $ETH is trading at $2,574 with $2,700 as its next major resistance level and $2,400 as its next key support level.
According to Morningstar last Wednesday (28/7), Peter Doyle, the co-founder of the US investment firm Horizon Kinetics, has revealed that the firm is investing in property and cryptocurrencies, mostly Bitcoin, to hedge against inflation. Horizon Kinetics has allocated 1% of its portfolio to Grayscale Bitcoin trust in 2016. Since then, the allocation has increased to 10% of their Paradigm fund, which has recorded almost 48% of gains this year.
In an announcement by Bitcoin Depot® last Wednesday (28/7), Bitcoin Depot® will cooperate with Circle K to expand its Bitcoin ATMs network across United States and Canada. Bitcoin ATMs allow users to exchange cash for over 30 other cryptocurrencies. “Circle K understands that cryptocurrency will likely be rising a part of the longer-term financial system and funds panorama. By including Bitcoin ATMs to the Firm’s shops, Circle K can appeal to new clients to their shops, provide monetary entry to underserved communities, and set themselves other than different retailers with this new expertise”, said Bitcoin Depot® CEO, Brandon Mintz.
According to a press release from State Street Corporation (NYSE: STT) last Thursday (29/7), State Street will partner with Lukka, a blockchain data and software provider, to launch digital and crypto asset service for their private fund clients. State Street also launched a new division called “State Street Digital” which mainly focuses on research and tools related to cryptocurrency, blockchain technology, central bank digital currencies and tokenization. “As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios,” said Jen Tribush, alternatives lead for State Street Digital.
Alts & DeFi
Alts- and DeFi-wise, Defi TVL (Ethereum network) increases to $70.03B at the time of writing. For some well-known tokens, over the week, Yearn Finance ($YFI) recorded 12.2% growth, Aave ($AAVE) is +17.6%, Compound ($COMP) is +6.6%, Uniswap ($UNI) is +27.9 %, Polkadot ($DOT) is +43.5%, Chainlink ($LINK) is +40.3%, Cardano ($ADA) is +13.0% and Polygon ($MATIC) is +19.6%.