Market Picture
The cryptocurrency market rallied 3.4% overnight to $2.4 trillion, taking advantage of the mixed performance of US indices, with the Russell2000 and Dow Jones up and the Nasdaq100 and S&P500 down. It’s not a full recovery, but it’s the second bounce in a week from just under $2.31 trillion.
Bitcoin rose 4.4% over the last 24 hours to $67.0K, taking the crypto market with it. It bounced off the 50-day moving average and continued to gain strength on Friday. This is an indication of the strength of the bulls, who have managed to defend the medium-term uptrend. At current levels, bitcoin has returned to the upper boundary of the descending channel formed in March.
Ethereum is finding support near its 200-day moving average, which also demonstrates the bulls’ desire to keep the coin in a long-term growth trend and confidently buy on dips towards $3000. Ethereum is now trading near $3200 and has no technical hurdles ahead until the $3500 area where local profit-taking could occur.
News Background
The sell-off largely replicates the pattern seen at the launch of the Bitcoin ETF in January.
According to SoSoValue, net outflows from spot Ethereum ETFs totalled $133.2 million as of 24 July. Inflows into “new” ETH-based ETFs were not enough to offset $326.9m of client withdrawals from Grayscale’s ETHE.
The Bitstamp exchange has reported that it has received the assets of the bankrupt Mt. Gox, following a similar report from the Kraken exchange. The payouts came after a series of transactions that saw the platform’s guarantor move 48,641 BTC worth more than $3 billion.
In contrast, spot bitcoin ETFs returned to positive flows with net inflows of $44.5 million on the day. Cumulative inflows since the launch of BTC ETFs in January totalled $17.5 billion.
According to VanEck’s baseline scenario, Bitcoin could reach $2.9 million by 2050, given its acceptance as a global medium of exchange and reserve currency. In a bearish scenario, the price will only rise to $130,300.
Marathon Digital, the largest mining company in the US, bought $100 million worth of bitcoins. The decision was made considering the recent market correction and the company’s return to its strategy of holding all mined bitcoins on its balance sheet.
