Crypto Weekly 17-23 July 2023
Standard Chartered has raised its Bitcoin price target from $100,000, expected in April, to $120,000 by 2024, with a projected increase to $50,000 within this year. Miners might sell with reduced profits.
PwC reveals that hedge funds are showing increased interest in allocating funds to Bitcoin, with the allocation rising from 4% to 7%. However, 23% of hedge funds are considering shifting their crypto investments outside the United States due to regulatory uncertainties.
The first-ever European Spot Bitcoin ETF, named BCOIN, is set to launch at the end of July on Euronext Amsterdam by Jacobi Asset Management of the Netherlands. This comes after the delay since last year caused by issues with FTX. Investors will directly own units of the Bitcoin-held fund.
Larry Fink, CEO of BlackRock, states in a CNBC interview that the company supports digital assets, which could become a global currency and help diversify investment portfolios. BlackRock sees increased interest among its clients in digital assets.
Glassnode data shows that the balance of Bitcoin on exchange wallets is below 12%, dropping to levels similar to mid-December 2017. Meanwhile, institutional investors have surged by over 40 since the end of April.
The U.S. Department of Justice transferred approximately 9,825.25 BTC, seized from Silk Road, worth around $299 million, to over 101 new digital wallets. The U.S. government plans to sell the remaining seized Bitcoin later this year.
XRP experiences a strong surge in price after winning a legal battle against the U.S. Securities and Exchange Commission (SEC), which had declared it a security. Several exchanges in the United States are preparing to relist XRP after previously delisting it due to litigation concerns.
Polygon, the Ethereum Layer 2 blockchain developer, is proposing a token name change from MATIC to POL to the user community. This change will encompass Polygon PoS, zkEVM, and Supernets.
Weekly Technical Analysis: 17-23 July 2023
Bitcoin (BTC)
Bitcoin continues to move sideways despite positive news from CPI figures and XRP’s legal victory. However, the decrease in Bitcoin Dominance may result in BTC underperforming compared to Altcoins. The support level remains at 1,020,000 THB, while the resistance level is at 1,116,000 THB
Ethereum (ETH)
Ethereum saw a strong upward movement after the positive news about XRP’s legal victory. However, it has not yet surpassed the resistance level at 69,500 THB. The price has corrected slightly, although it has not broken below the level of 64,500 THB. The trend still has the potential to move upward, but if it breaks the support level, the market may see a slowdown in investments. It is expected that the price of ETH may underperform compared to other altcoins for a certain period.
1INCH
1INCH experienced a significant increase of 63.4% in the past week. The price showed a strong upward movement following other DeFi coins. The market may wait for the price to consolidate without breaking below the support level at 14 THB. A key resistance level to test is at 20 THB.
Ripple (XRP)
XRP surged by 60% in the past week. The significant price increase requires close monitoring with the support level at 23 THB as a reference. If the support level holds, the market may sell for short-term profit-taking around the level of 30 THB.
Trading and Investment Considerations For The Week
Despite the US CPI figures coming in at 3.0%, lower than the market’s expectation of 3.1%, and a decrease from the previous month’s 4%, the Dollar Index has broken below key support. However, Bitcoin’s price has not responded significantly, indicating that the cryptocurrency market is currently placing more importance on the decision regarding the approval of a Bitcoin ETF by the US SEC.
On the positive side, the court ruling that XRP is not a security allows it to resume trading on US exchanges. This could potentially bring positive momentum to other altcoins as the market turns its focus towards profit-taking opportunities. The court’s decision may also influence the SEC’s decision-making process regarding regulations in other crypto-related cases, which could be beneficial for the overall cryptocurrency market.
The significant drop in Bitcoin dominance could signal a potential return of profit-taking in altcoins, especially in the DeFi sector, with coins like COMP and SNX showing strong upward movements. However, caution is advised when trading coins that have experienced significant price increases but lack fundamental support factors, as there may be a subsequent downward correction.
Although altcoins have been gradually recovering, it is still unclear whether the cryptocurrency market will enter a bullish phase again. Therefore, trading should be approached with caution. However, the market is starting to show opportunities for investments in coins with solid fundamentals.
Next week, on July 26th, the outcome of the US Federal Reserve’s meeting will be revealed. The market expects a 0.25% interest rate hike. However, if there is a decision to halt interest rate hikes, it could have a positive impact on the market.
Disclaimer:
-Cryptocurrency and Digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to own risk profile.
– Past Returns/Past Performance does not guarantee future returns/performance.
*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.
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