Crypto Weekly Roundup: Cryptocurrency Market Started to Rise and Market Sentiment Is Getting More Positive

2021/08/03 10:01:47

As part of our crypto weekly roundup series, we will discuss the market driving factors, trends, and main events that happened in the crypto sector throughout the week.

The crypto market has finally started to rise again as Bitcoin closed 10 daily weekly candles, whereas Ethereum outperformed BTC with 13 straight daily candles in a row. We saw this sudden growth three times in the past, May 2017, June 2019, and December 2020 - right before a mega bull run after some consolidation.

EIP-1559 is just a few days away, and we also saw some positive news from various institutions. However, we are entering a consolidation phase where we might see some red candles before an uprise. Let's discuss some of the key events that happened last week in the crypto space.

Bitcoin

City A.M published a news that Amazon will be accepting Bitcoin payments by the end of 2021 which created a positive sentiment in the market. However, Amazon denied the rumors from City A.M and said it has no plans to accept BTC.
According to Glassnode on-chain activity data, whales have accumulated 40,000 BTC in the last 10 days alone. Over 170,000 BTC were accumulated by whales in the last six weeks.
Tesla announced their quarterly earnings report showing a loss of $23 million in BTC holdings as bitcoin-related impairments after the plunge.
Jack Dorsey said that Twitter might be accepting Bitcoins as a payment method for Twitter ads in a conversation with Elon Musk.
Thomas Peterffy, the founder of Interactive Brokers online trading platform revealed that he has invested in various crypto assets.
There has been an increase in accumulation rather than spending from retail investors, according to Glassnode on-chain activity data. The spending behaviour has remained flat during the last 15 days, while the accumulation is growing.
Due to less spending and more HODLing, Santiment cited that this might be a bad signal showing less demand for Bitcoin from the perspective of on-chain activity. On the contrary, there is a lot of on-chain activity for Ethereum due to the DeFi and NFT craze.

Ethereum

EIP-1559 codenamed the London Hard Fork is just around the corner that will make ETH a deflationary asset by burning fees.
One of the core components of ETH2.0, the EIP-3675, has been released on GitHub. EIP-3675 is the module for Proof of Stake (PoS) on the Ethereum 2.0 mainnet.
Grayscale’s Ethereum Trust (ETHE) is getting popular among institutional investors. Edge Wealth Management, one of the major investment funds, has added the ETHE holdings in their portfolio.
Vitalik Buterin said that the launch of ETH2.0 might be delayed due to technical reasons and internal team conflicts.
According to Glassnode’s on-chain activity data, the exchange balance of Ethereum is dropping rapidly which shows a strong trend towards accumulation. Whereas the on-chain spending (number of transactions) is increasing due the sudden growth in the NFT space.
The top 10 whales now hold over 21.3 million ETH, the highest we have seen since the last 5 years.

Altcoins

Now you can buy meat-flavoured dog biscuits with Dogecoin from a Burger King Franchise in Brazil, a perfect marketing play to attract customers.
According to recent news, Stellar Development Foundation plans to acquire MoneyGram International which is the largest money transfer service provider.
Litecoin whales have accumulated over 270,000 LTC since the beginning of July, increasing their holdings by $30 million.
The founder of Tron blockchain, Justin Sun, is participating in a project that trains cadres of the Communist Party of China through Central Party School.
Retailers across the US can now accept DASH through the DashDirect app which was recently announced by the Dash project to help increase adoption and retail acceptance.

Regulations

The US Securities and Exchange Commission is targeting cryptocurrencies once again. Gary Gensler, the SEC Chair, has stated that token securities should be reported to the SEC.
The United States Treasury Secretary is developing a ‘comprehensive and coordinated’ plan on the request of Democrat Senator, Elizabeth Warren, to address the risks posed by the crypto space to the traditional financial markets.
The Bank of Russia issued a statement where it asked the Russian stock exchanges to not list companies involved in the crypto-related activities.
Vanuatu has finally lifted all the bans on cryptocurrencies, allowing companies and individuals to conduct crypto-related activities.
The International Monetary Fund (IMF) said that there are substantial risks to macro-financial stability for countries that are accepting crypto assets as legal tenders.
Tether is under the regulatory radar once again, as the U.S. Department of Justice has launched an investigation for Tether’s possible banking fraud. This announcement was published on Bloomberg which Tether called a mere clickbait.
The New Jersey pension fund will purchase shares of the crypto mining companies in the region, and they have allocated a total of $7 million for this purpose.
Bitcoin mining is coming to Thailand. Jasmine Telecom Systems (JTS) in Thailand announced that they plan to mine Bitcoin.

Closing Thoughts

The cryptocurrency market is quickly gaining momentum amid the tightening regulations. At this point, it can be assumed that regulations are no longer the driving force of the crypto market as it happens to be in the past. We are now entering into a consolidation phase, but there are strong possibilities that we might witness another historical bull run.