BTC rises to $30,000 after Moody’s downgrading of US banks

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The cryptocurrency market exhibited little movement during the trading hours as stock futures indicated a fresh bias for risk assets prior to the crucial U.S. inflation report. Following June’s 3% reading, the U.S. consumer price index (CPI) is expected to show that headline inflation increased by 3.3% year-over-year in July. Now that Hong Kong has issued the first of its crypto licenses under its new regulatory framework, the city is experiencing fresh interest from the larger industry. More crypto ETF applications have been submitted to the SEC, this time mixing BTC and ETH futures in an equally weighted manner.

Fundamental Updates

Let’s delve into the significant developments shaping the crypto market landscape:

  • Arbitrum Stylus: In February, Offchain Labs introduced Stylus, a programming environment enhancement for Arbitrum One and Nova. Rust-written dApps are faster than Solidity and Vyper ones, hence the upgrade would allow for faster dApp development. It would reduce fees. When combined with Arbitrum Nova’s data-saving abilities, Stylus would make decentralized gaming more viable. The upgrade will go live this year, but the specific date is unknown. Developer count increases with market conditions. We expect a token’s price to lag behind an ecosystem’s developer count. However, Arbitrum’s initiatives would be successful in drawing further developers.


  • PayPal’s stablecoin(PYUSD): PayPal Holdings has entered the stablecoin market, making it the first large banking company to do so. PayPal users can transfer the stablecoin between wallets, send payments to pals, and shop online with it. PayPal USD can be converted into and out of the payments company’s other digital tokens, such as bitcoin and ether. The decision may aid the ailing crypto payments industry. The movement is positive and is part of how markets evolve and grow.
  • Outlook for DeFi: MakerDAO shined up during the month as its token, MKR, soared 40+% after the founder bought more MKR and the DAO’s expected annual earnings rose from real-world asset acquisition. The Curve exploit and decreasing Ether price drove Defi TVL down from $45.2b to $40.9b , causing many users to remove their liquidity from the network. Overall lending protocol TVL now outperforms decentralised exchanges .MakerDAO has restructured its assets. The platform’s dependency on USDC as DAI’s main asset has decreased from 50% to 9%. MakerDAO now has over 50% yield-bearing real-world assets (RWA) worth $2.4 billion. r 50% yield-bearing real-world assets (RWA) worth $2.4 billion. Additionally, as the market capitalization of tokenized money market funds approaches $500 million, there is an increasing demand for tokenized U.S. Treasury bonds. The multinational business consultancy firm Boston Consulting Group predicts that the market for tokenized assets might explode to $16 trillion by 2030, making the future of tokenization now look bright.

Key Data Points

crypto market data points
  • Total market capitalization: The total market capitalization of the crypto market is currently around $1.22 trillion. This is up by 3 billion from last week.
  • Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 47%. This is 0.2% up from last week.
  • ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 18.2%. Dominance % unchanged from last week.

Bitcoin Price Analysis:

Bitcoin’s price is being pushed between $29,000-$30,000 and the horizontal support at $28,500. This low-volatility era is expected to be followed by an increase in volatility. If the price rises and breaks above $29,900, the bulls have beaten the bears. This might spark a rally to the overhead resistance zone between $31,000 and $32,000. If the price falls and remains below $28,300, it indicates that the uncertainty is resolved in favor of the bears. The BTC/USDT pair may then begin to fall to $27,000.

BTC Technical Indicator:

BT technical indicator
BTC price analysis

Macro Updates:

  • On August 10, the Consumer Price Index for July will be released. It is expected to be about 3.3%, up from the previous month’s 3% and over the central bank’s 2% objective. The likelihood of the Fed tightening the economy increases with the most recent unemployment rate of 3.5% in June, which was close to a 40-year low.
  • The real estate sector has been affected as well, with limited home supply and increased mortgage rates. Even conventional safe assets like bonds are losing some of their allure as the federal debt in the United States continues to rise.
  • On Thursday and Friday, respectively, the US CPI and PPI numbers will be the focus of attention. Weak results here will reduce the probability of further Fed rate hikes. 
Bitcoin returns were 1.18% for this week. The Alpha Blue Chip Focused Strategy returns were 0.66% during the same period (03 August – 09 August). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -1.24% and 0.26%, respectively.

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