The cryptocurrency market had a thrilling week with notable highlights. Bitcoin traders were on edge during the FOMC meeting, while intriguing rumors going around about the next Bull run from CZ. Additionally, the ongoing Bitcoin ETF-SEC saga captivated attention, making it a week of significant developments in the world of cryptocurrencies.
Let’s delve into the significant developments shaping the crypto market landscape:
- Bitcoin Miners’ Fees Skyrocket to $184 Million with Ordinals Boost: Bitcoin miners capitalized on the Ordinals boost, generating a staggering $184 million in fees during Q2 2023. This 270% surge from the previous quarter surpassed the combined fees of the past five quarters, driven by Bitcoin’s price rally and the adoption of BRC-20 token standard.
- Nasdaq Resubmits BlackRock’s Bitcoin ETF Application to SEC: Nasdaq has refiled its proposed rule change for a spot Bitcoin ETF, following in the footsteps of BlackRock and Fidelity. The filing includes a “surveillance-sharing agreement” with Coinbase and recent data access arrangements.
- South Korea Passes Virtual Asset User Protection Act: South Korea’s National Assembly has approved the Virtual Asset User Protection Act, a comprehensive legislation targeting unfair trade practices and providing safeguards for cryptocurrency investors. The act consolidates 19 crypto-related bills, defines digital assets, imposes penalties for illicit trading, and holds individuals accountable for unfair trading practices in the crypto market.
Fed Minutes Reveal Split Views on Rates, Crypto Market Reacts: The June 2023 FOMC meeting minutes disclosed a divergence among Fed officials, with a majority favoring unchanged rates while some supported a 25 bps increase. Contrary to market expectations of rate cuts, most officials anticipate more rate hikes this year.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.2 trillion. This is up about 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 49.7%. This is down slightly 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 19.3%. This is up slightly from last week.
Bitcoin Price Analysis:
The price of Bitcoin has surged to $31,300+, its highest level since June 2022. The bulls are purchasing intraday dips. Buyers will attempt to strengthen their position by driving and maintaining the price above the overhead barrier of $31,000 while remaining above $30,417. If they are successful, the BTC/USDT pair may gain momentum and begin its ascent toward $32,500. The $32,500 threshold may operate as a modest stumbling barrier. To gain an advantage in the short run, sellers must lower the price below $30,417. The BTC may then fall to $28,250.
Here are some of the key things to watch in the crypto market in the coming weeks:
- Release of the US inflation data: The Consumer Price Index (CPI) is due to be released on July 12. If inflation continues to rise, it could put more pressure on the Fed to raise interest rates, which could be bearish for the crypto market.
- Upcoming token unlocks:
- $APT: $35.6M on 12 July
- $IMX: $13.6M on 15 July
- $APE: $33.8M on 17 July
- $AXS: $21.3M on 22 July
- $OP: $31.9M on 30 July
The crypto market is witnessing a promising outlook in the near term, driven by notable increases in both Bitcoin and altcoin values. This optimistic trend is further bolstered by the anticipated participation of institutional investors, which is anticipated to sustain the current upward momentum.
Bitcoin returns were 0.32% for this week. The Alpha Blue Chip Focused Strategy returns were 6.15% during the same period (30 Jun – 06 July). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were 4.72% and 1.52%, respectively.