First Mover Asia: Bitcoin Tempts $30K as Investors Eagerly Await ETF Approval

Bitcoin Bulls Encounter Headwinds as Monthly Stochastic Indicator Trends Downward: Analyst

SEC Postpones Spot Bitcoin ETF Decision for All Applicants, Including BlackRock and Fidelity

Amsterdam Welcomes Listing of Europe's Inaugural Bitcoin ETF

Good morning. Here’s what’s happening:

Prices: Bitcoin continues to hover at $29K, tantalizingly close to the $30K mark. What catalysts are needed to propel it beyond the $30K threshold?

Insights: Crypto is witnessing revolutionary advancements, and DeFi remains alive and kicking.

 

Prices

Bitcoin (BTC) $29,012 −27.5 ▼ 0.1%	Ethereum (ETH) $1,827 −8.6 ▼ 0.5%	CoinDesk Market Index (CMI) 1,212 −2.9 ▼ 0.2%
S&P 500 4,478.03 −23.9 ▼ 0.5%	Gold $1,979 +39.3 ▲ 2.0%	Nikkei 225 32,192.75 +33.5 ▲ 0.1%

BTC/ETH prices per CoiCryptoUs.com, as of 7 a.m. ET (11 a.m. UTC)

 

Bitcoin is a Stablecoin?

As Asian markets kickstart the new week, bitcoin (BTC) opens at $29,012, and ether (ETH) is trading at $1,827, resulting in a remarkably stable weekend with minimal volatility.

“Another week of relative stability for BTC and ETH bodes well for bulls,” Joe DiPasquale, CEO of BitBull Capital said in a note. There have been some developments in the space, ranging from the Curve hack to more altcoin mania on Base. The market has, however, not reacted too harshly, and ETH has managed to defend $1800.”

In addition to the exciting developments in Decentralized Finance (DeFi), which consistently captivate our attention, the overall crypto markets are projected to remain subdued until the approval of a spot Bitcoin exchange-traded fund (ETF).

According to a recent newsletter by Blockware Intelligence, the quantity of liquid and highly liquid Bitcoin supply has reached its lowest point since 2018, while the amount of illiquid supply has surged to an all-time high. Concurrently, long-term holders are accumulating and hoarding their coins. Additionally, there is a notable surge in the creation of new Bitcoin addresses, signifying a general increase in on-chain demand. This positive momentum resembles the trends observed when exiting the bear market in 2019.

In a recent report, Vetle Lunde from K33 Research describes July's trading volume as "anemic" but also highlights that the market is standing on the brink of transformation.

The crypto market has recently witnessed an unusual drought, characterized by remarkably low trading volumes and BTC volatility at levels not seen in the past five years. However, this period of low activity may be the calm before a storm of increased volatility, according to the writer. There are several potential catalysts that could trigger this sudden eruption of volatility, including ETF filings, ongoing legal disputes, and structural pressures within the market. As a result, strategies such as passive long volume exposure and gradual BTC accumulation are being considered as prudent approaches to navigate through these uncertain times.

“A deep crypto sleep tends to be followed by a violent wake-up. The market’s volatility pressure is about to climax, and that an eruption is near," he said in the note.

 

Insights

Crypto and the Real Meaning of 'Radicalism': Over the past four to five years, the realm of political thought within the cryptocurrency community has experienced remarkable expansion. Ethereum's smart contracts have lured economic engineers seeking to establish more equitable societal systems. Furthermore, this period has witnessed the emergence of pioneering theories such as "Radical Markets" and "regenerative economics." A noteworthy development is the rise of "The Blockchain Socialist" as a prominent platform engaging in discussions about American economic imperialism and advocating for a left-wing perspective on privacy. In his latest book, Joshua Dávila – also known as The Blockchain Socialist – compellingly argues how these developments challenge the predominantly libertarian mainstream in the crypto sphere.

DeFi Definitely Isn't Dead: The DeFi era of the summer in 2020, marked by practices like yield farming, has since matured, witnessing the ascent of decentralized platforms as dominant players adopting sophisticated expansion strategies. However, the sector continues to grapple with issues of centralized control and the complexities arising from programmers playing the role of financiers. This reflects an ongoing experimental phase, presenting both opportunities and risks for potential missteps.