Between July 14 and July 21, the value of Bitcoin fell by 4.66%, reaching US$29,755 at 7:35 p.m. on Friday in Hong Kong.
The value of the largest cryptocurrency on the planet has been trading for less than US$30,000 for the entirety of this week. In a similar vein, the price of ether dropped by 5.38% during the same time period, bringing it down to $1,885 USD.
The continued interest shown by institutional investors is reflected in the fact that thSecurities and Exchange Commission (SEC) of the United States has received eight applications for spot Bitcoin ETFs. BlackRock was the company that submitted the initial application on July 13, followed by asset manager Valkyrie the following Monday.
The continued interest of major corporations and financial institutions in Bitcoin, according to Lucas Kiely, chief investment officer of digital asset platform Yield App, is one factor that contributes to Bitcoin’s stability. This pattern is very likely to continue even as the SEC considers additional ETF applications involving bitcoin.
“Exchange-traded funds (ETFs) are poised to expand the accessibility of the Bitcoin market and possibly the wider crypto market to a large group of global investors who had not previously considered investing in cryptocurrencies. This could be a game-changer for the industry.
The tendency of governments to move toward regulating cryptocurrencies rather than outright banning them has become more apparent, and a recent ruling regarding Ripple has provided a sense of reassurance within the United States cryptocurrency industry.
According to Aziz Kenjaev, a financial analyst and director of business development at the cross-chain liquidity protocol Entangle, the decision of the SEC to accept for review the initial eight Bitcoin ETF filings has instilled confidence in other leading asset managers.
Investors and members of the cryptocurrency community see this as the start of a brand new bullish cycle. The continuation of Bitcoin’s bullish trend requires that the cryptocurrency keep trading above the significant support level of US$30,000.
In addition, it carries psychological weight, and a fall below this level has the potential to set off a wave of panic selling in the market, as Kenjaev explained in a statement that was provided to Forkast.
On Tuesday, the French financial institution Societe Generale obtained a cryptocurrency service license in Europe. With this license, the bank’s cryptocurrency unit, Forge, will be able to offer cryptocurrency sales, custody, and trading services.
Grayscale Investments, a digital asset manager, released a report on Friday stating that Bitcoin and other cryptocurrency prices in 2023 have shown a stronger correlation with macroeconomic conditions.
According to the findings of the report, the rise in value of Bitcoin since January has exceeded what can be solely attributed to the rally in technology stocks and the decline in the value of the US dollar.
Grayscale Investments attributes this to a number of specific positive factors, including optimism regarding the potential approval of spot Bitcoin ETFs and the surge in Bitcoin’s price that occurred in March as a result of stress in regional banks.
Despite the fact that the cryptocurrency market has demonstrated significant recovery since the latter half of 2022, current valuations are now more closely linked to more general macroeconomic trends.
Additional monetary policy tightening by the Federal Reserve could potentially create difficulties for higher-risk assets such as equities and cryptocurrencies.
According to data provided by CoinMarketCap, the total market capitalization of all cryptocurrencies had dropped by 4% to reach $1.2 trillion as of 7:35 p.m. local time in Hong Kong on Friday. This represents a decrease from the previous week’s value of $1.25 trillion.
Ether’s market cap was valued at $226 billion, accounting for 18.9% of the market, while Bitcoin’s market cap was $578 billion, representing 48.3% of the total market. The market cap of ether was valued at $226 billion.
MKR and XDC as Two Companies to Have Moved Noticeably
This week, among the top 100 coins, the value of the governance token for Maker DAO (MKR) reached an all-time high of $1,151 after experiencing a remarkable increase of 25.83% in price.
The price increase of the coin started on Friday, after it was reported by Lookonchain, a company that specializes in crypto intelligence, that a16z had deposited 12,864 MKR tokens to Coinbase and CMS Holdings had deposited 525 MKR to Binance. These deposits point to the possibility that the coins were sold before the rally began.
The XDC Network (XDC) token, which is an enterprise-grade blockchain protocol, was the second best performer of the week, achieving a value of US$0.04187 after achieving a gain of 25.15 percent.
The day before, anticipation of the protocol’s participation in the Ethereum Community Conference (EthCC), which was held in Paris, sparked the beginning of the positive momentum that the coin has been riding ever since.