After signals of a possible steep decline in the crypto market, Bitcoin’s recovery has improved the outlook for the market and made itself the focus of this week’s crypto roundup.
With a global stock market slowdown taking shape last week, the crypto market began the week with a dip. Gradually, Bitcoin even went below $50,000 with fears of a bearish run emerging. However, at the end of the week, Bitcoin’s recovery became the main metric for the market to shoot up. With this market movement, this week’s crypto roundup features a relatively much better scenario.
This sudden and substantial price appreciation of BTC has caught the attention of both seasoned investors and beginners alike. It has led to speculation about the underlying factors driving this bullish momentum. A few macroeconomic positive signals, along with a general emergence of bullish sentiments, could have led to the recovery.
A psychological shift in investor sentiments also came up once Bitcoin consolidated above $55,000. It became clear then that a decline towards $40,000 was not on the horizon. At the same time, the $59,000 price level turned up as BTC’s support, fuelling further price strength.
Many analysts and investors believed that Bitcoin was in an accumulation phase during its dip. This means that large-scale investors were steadily buying Bitcoin, anticipating a future price increase. Bitcoin whales, specifically institutional investors, might be the ones accumulating crypto this week.
At the same time, both daily trading volumes and volatility spiked in the market this week. A digital asset analysis firm revealed how trading volumes had surged in July itself. This trend has extended to August as well.
The firm stated in its report, “In July, the combined spot and derivatives trading volume on centralized exchanges rose 19.0% to $4.94tn, recording the first increase in four months. The surge in volume follows multiple bullish catalysts in July, including the launch of spot Ethereum ETFs in the US….”
Crypto policy initiatives are also underway in the US, according to latest reports. In the last few weeks, news related to political initiatives for crypto has also been a catalyst for the crypto market. Although these have been short term fluctuations in the market, the political support for crypto in the US has become a frontrunner for the market’s sentiments.
There have been two other pieces of news in the US that are a positive turn of events. First, a county in California has mandated the regulation of Bitcoin ATMs, which is touted to be a move for its better adoption. The second is a proposal from a crypto advocacy group for a Bitcoin tax-free zone in the country.
In Europe, the rise of the stablecoin market due to transparent MiCA rules has made headlines. Countries like France have gradually started incorporating these rules into their crypto firms.
This week, the following tokens were the best performers:
But these tokens shed the most losses:
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