CRYPTO week ahead: July 18 – 24
Last week in the news
U.S. equities bounced a bit back on Friday; however, they are still below levels from the beginning of the previous week. Crypto market had a modestly volatile week, but still ended in a weekly profit. Bitcoin erased losses from the beginning of the week by reaching levels above 21K, while Ether bounced back to 1.3K level.
The most significant news during the previous week was the release of the U.S. inflation rate, which reached new highs at 9.1%. This was above market expectations of 8.8%/ At the same time core inflation was also above market estimate at 5.9%. On the other hand, released data on the US retail sales were also higher from market expectations at 1% compared to expected 0.8%. JPMorgan`s CEO, Jamie Dimon, commented the state of the US economy noting that it is good that there is economic growth, supported by job market and consumer spending, but then he turned to the overall general negative trends in the world, summarising that it will have “negative consequences on the global economy sometime down the road”. Still, what concerns investors after the release of latest inflation figures are further moves from the FED. Several FED officials publicly commented that they will support further increase of interest rates in order to cope with inflation, noting figures from another 75 to 100 basis points. Next FOMC meeting is scheduled for 26-27th July, so more information on how the FED perceives the current state of the economy will be available.
The Senate of Paraguay approved the bill which will regulate crypto mining and trading in this country. This is the second time that the Senate passes the bill, after it has been returned for modification from higher authorities. The bill introduces anti money laundering regulation within crypto businesses as well as part for the energy supply for these companies.
Ethereum`s fork Merge might occur on September 19th this year, as per statement made by Tim Beiko from Ethereum Foundation. This fork will enable Ethereum`s network to move from higher energy use for proof-of-work to more efficient one.
Total venture capital investments in the crypto industry dropped by 26% during the first six months of this year, as per estimates. Still total investments during this year hold at significant $9.3 billion. Negative developments on the crypto market in terms of terraUSD, Celsius and Three Arrows Capital collapses were few of the major contributors for investors to withhold the capital from this industry.
Uniswap (UNI) token increased its value by 20%, after Robinhood Markets, one of the popular brokers in the US, added this coin to its trading platform.
Crypto market cap
Surging inflation in the US implies further monetary tightening by the FED, which continues to be a main reason which is holding investors from both equity and crypto markets. This further drives a conclusion that market recovery is still on hold and probably will be for some time in the future. During the previous week total crypto market capitalization remained relatively flat on a weekly basis. Crypto cap reached 939B which is a modest increase from the previous week by 1%. Daily trading volumes were further decreased, moving between
67B and 97B on a daily basis. Total funds outflow from the beginning of this year holds at 1.242B, which is a drop of 57%.
Previous week was relatively flat on the crypto market, however, not for all coins. Bitcoin, the most dominant coin, lost some 77B in value compared to the end of the week before, however, Ether was up by 114B or 9%, supported by the news regarding new fork release in September. Since major altcoins were relatively flat, the market was driven by emerging coins in popularity on the market. Uniswap`s market cap was up by 14% supported by Robinhood Markets as this broker made the coin available for trading on their platform. Another coin with a significant surge in market cap by 22% was Polygon, followed by Monero which increased its cap by 11% on a weekly basis. Tether slowed the decrease in coins in circulation to 0.2% previous week.
Crypto futures market
Based on the movements of the crypto futures market from two weeks ago, it seems like investors are starting to slowly position their investments, anticipating some positive movements by the end of this and next year. However, the previous week was under the impression of negative macro-fundamentals in the US, in which sense, long term futures lost some of their strength gained two weeks ago.
In line with the spot market, BTC futures were down by some 4% on average for all maturities. BTC futures ending this year modestly dropped to 20.7K from 21.5K from two weeks ago. On the other hand, there had been some positive developments for ETH futures with shorter maturities, which gained some 2% on average. Since the official futures market closes on Friday, latest prices did not manage to catch a surge in ETH price from the weekend, so closing prices were above 1.2K. As for futures maturing as of the end of this year, they continue to hold around 1.2K.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
U.S. equities bounced a bit back on Friday; however, they are still below levels from the beginning of the previous week. Crypto market had a modestly volatile week, but still ended in a weekly profit. Bitcoin erased losses from the beginning of the week by reaching levels above 21K, while Ether bounced back to 1.3K level.
The most significant news during the previous week was the release of the U.S. inflation rate, which reached new highs at 9.1%. This was above market expectations of 8.8%/ At the same time core inflation was also above market estimate at 5.9%. On the other hand, released data on the US retail sales were also higher from market expectations at 1% compared to expected 0.8%. JPMorgan`s CEO, Jamie Dimon, commented the state of the US economy noting that it is good that there is economic growth, supported by job market and consumer spending, but then he turned to the overall general negative trends in the world, summarising that it will have “negative consequences on the global economy sometime down the road”. Still, what concerns investors after the release of latest inflation figures are further moves from the FED. Several FED officials publicly commented that they will support further increase of interest rates in order to cope with inflation, noting figures from another 75 to 100 basis points. Next FOMC meeting is scheduled for 26-27th July, so more information on how the FED perceives the current state of the economy will be available.
The Senate of Paraguay approved the bill which will regulate crypto mining and trading in this country. This is the second time that the Senate passes the bill, after it has been returned for modification from higher authorities. The bill introduces anti money laundering regulation within crypto businesses as well as part for the energy supply for these companies.
Ethereum`s fork Merge might occur on September 19th this year, as per statement made by Tim Beiko from Ethereum Foundation. This fork will enable Ethereum`s network to move from higher energy use for proof-of-work to more efficient one.
Total venture capital investments in the crypto industry dropped by 26% during the first six months of this year, as per estimates. Still total investments during this year hold at significant $9.3 billion. Negative developments on the crypto market in terms of terraUSD, Celsius and Three Arrows Capital collapses were few of the major contributors for investors to withhold the capital from this industry.
Uniswap (UNI) token increased its value by 20%, after Robinhood Markets, one of the popular brokers in the US, added this coin to its trading platform.
Crypto market cap
Surging inflation in the US implies further monetary tightening by the FED, which continues to be a main reason which is holding investors from both equity and crypto markets. This further drives a conclusion that market recovery is still on hold and probably will be for some time in the future. During the previous week total crypto market capitalization remained relatively flat on a weekly basis. Crypto cap reached 939B which is a modest increase from the previous week by 1%. Daily trading volumes were further decreased, moving between
67B and 97B on a daily basis. Total funds outflow from the beginning of this year holds at 1.242B, which is a drop of 57%.Previous week was relatively flat on the crypto market, however, not for all coins. Bitcoin, the most dominant coin, lost some 77B in value compared to the end of the week before, however, Ether was up by 114B or 9%, supported by the news regarding new fork release in September. Since major altcoins were relatively flat, the market was driven by emerging coins in popularity on the market. Uniswap`s market cap was up by 14% supported by Robinhood Markets as this broker made the coin available for trading on their platform. Another coin with a significant surge in market cap by 22% was Polygon, followed by Monero which increased its cap by 11% on a weekly basis. Tether slowed the decrease in coins in circulation to 0.2% previous week.
Crypto futures market
Based on the movements of the crypto futures market from two weeks ago, it seems like investors are starting to slowly position their investments, anticipating some positive movements by the end of this and next year. However, the previous week was under the impression of negative macro-fundamentals in the US, in which sense, long term futures lost some of their strength gained two weeks ago.
In line with the spot market, BTC futures were down by some 4% on average for all maturities. BTC futures ending this year modestly dropped to 20.7K from 21.5K from two weeks ago. On the other hand, there had been some positive developments for ETH futures with shorter maturities, which gained some 2% on average. Since the official futures market closes on Friday, latest prices did not manage to catch a surge in ETH price from the weekend, so closing prices were above 1.2K. As for futures maturing as of the end of this year, they continue to hold around 1.2K.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
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