July Crypto Market Analysis
After a bearish two months, the crypto market has started to recover. While many may attribute the recent surge in Bitcoin’s price to the rumors about Amazon planning to accept crypto payments, on-chain data suggests otherwise and shows that whales have been buying the dip.
In addition to crazy price swings, the crypto market made headlines as many prominent figures changed their stance against cryptocurrencies. Despite this changing sentiment around cryptocurrencies, especially Bitcoin, most regulators around the globe are yet to finalize their stance on crypto assets or introduce comprehensive laws.
Bitcoin Had a Volatile Month
After hitting its all-time high this spring, Bitcoin dropped to $29,031 on June 22 and fluctuated between $30,000 and $37,000 for a while before dipping back to $29,306 in July, exactly a month later. However, right after nose-diving to its monthly low, Bitcoin bounced back and saw a rapid price discovery, gaining as much as 15% in one day on July 28.
Ethereum Going Greener But Continues to Mirror Bitcoin’s Price Movements
The ETH 2.0 contract now commands more than 6 million ETH, which will help the network to transition to the Proof of Stake (PoS) consensus. While Ethereum’s “London Upgrade” is bullish for the network, data shows that DeFi activity has slowed.
Ethereum’s price action mirrored Bitcoin’s, falling to $1,727 on the same day that Bitcoin dropped to its monthly low. However, it rose back to $2,420 as soon as Bitcoin broke the $40,000 mark.
Institutional Support for Cryptocurrencies Grows Day by Day
The Philippine Stock Exchange (PSE) is the latest to enter the crypto space, with its plan to become a platform for trading crypto assets once it gets approval from relevant government authorities. Visa will shortly approve a Bitcoin spending card for an Australian startup. Furthermore, Softbank invested $200 million in Brazil’s largest crypto exchange. Even the hotel industry is extending support to cryptocurrencies as Pavilions Hotels & Resorts now partners with Coindirect to enable its users to pay for accommodations in crypto.
JP Morgan, Elon Musk reignite Crypto markets
“Stay away from Bitcoin ” were the words of JP Morgan CEO Jamie Dimon, which he said during a recent US House Committee on Financial Services virtual hearing. On the other hand, the US’s largest bank has now given its financial advisors the green signal to offer its clients access to cryptocurrency funds. The dramatic change isn’t only observed with banks. The world’s second-richest man, Elon Musk, who lashed out at Bitcoin’s PoW two months ago, is now seen advocating for Bitcoin once again. Sitting with Twitter’s Jack Dorsey and Ark Invest’s Cathie Wood at The Bitcoin Conference, Elon said, “I would like to see Bitcoin succeed.”
Move Over NFTs, Here Come the Gaming Tokens
Despite a slow June month in terms of sales, the NFT market has managed $2.5 billion in sales this year which is up from just $13.7 million in the first half of 2020. Though the NFT-mania has picked up again in July, the sales volume is still slow compared to the first quarter of 2021.
However, the crypto market is very fluid and moves from one trend to another, the latest being blockchain-based gaming platforms. In the past few weeks, gaming tokens have surged in value, with platforms like Enjin, Decentraland, and Axie riding the waves. Another decentralized gaming startup, Yield Guild Game (YGG), sold its 25 million native tokens almost instantly, which shows one aspect of the market’s general confidence in game tokens.
Crypto Going Global? Watch Dogs Around The World Tighten Grip on Cryptos
In an attempt to prevent people from getting into crypto, Natwest, a UK bank joined the league of Barclays and Santander to block the payment and transfer of funds to crypto exchanges. This was related to the UK’s warnings to its banks about unregulated investing and crypto activity. In the US, the FBI warned crypto owners and exchanges of the threats posed by cyber criminals and other dangerous crypto activity.
However, as we know by now, the legal foundations governing crypto are diverse across continents and jurisdictions, and not all of it is negative, and not all of it brings scrutiny. An Argentinian lawmaker, José Luis Ramón, has proposed a bill to allow employees and service exporters to receive their salary in cryptocurrencies. Another lawmaker and Congressman in Paraguay is planning to present a Bitcoin bill.