Crowdsense Crypto Weekly Review and Outlook | July 4 - July 10, 2021
News Highlights
Crypto.com partnership deals with both the Formula 1 and the UFC
People’s Bank of China ramps up digital currency crackdown
Sotheby's sells diamond for $12.3 million in crypto, most expensive digital currency transaction ever
Bank of America has launched a new crypto research team
Barclays customers in the UK can no longer transfer funds to Binance
TikTok bans crypto ads on its platform
Markets
The entire market value of all crypto assets has been moving in a range between $1.3 trillion and $1.5 trillion over the last few weeks.
BTC-USD ended last week around three percent lower and the pair remains relatively range-bound over the past month. We reiterate that investors should keep an eye out for the $32,000 support level that has been in place since February.
ETH-USD followed Bitcoin around three percent lower versus the US Dollar last week and remains flat around the $2,100 handle going into the start of the week.
The Week Ahead
According to data provided by Bitinfocharts, there are eighty addresses holding between 10,000 to 100,000 Bitcoins, which makes up around 11 percent of the total supply of Bitcoin. These addresses are at all-time lows at present but worries about the Delta Covid variant could weigh on crypto markets in the coming months and a rotation out of altcoins and into Bitcoins and stablecoins remains a possibility ahead.
The upcoming changes to the Ethereum blockchain are likely to be much followed by ETH traders. In this context, according to data published by IntoTheBlock, there has been a consistent rise in the past few months of addresses that have been holders of Ethereum for over one year. As such, the long-term outlook for Ethereum remains positive ahead of the upcoming London hard fork.
Ethereum Classic has been the subject of much interest from traders in recent months and there appear to be several reasons for this. The most recent development in this regard was the Digital Currency Group announcing plans to purchase a total of $50 million worth of shares of the Grayscale Ethereum Classic Trust. In addition to this, Ethereum Classic is scheduled to undergo a hard fork around the 21st of July and could also implement ECIP-1103, which could be bullish for ETC-USD in the coming months. Furthermore, Ethereum’s transition to a Proof-of-Stake chain hasn’t been met with unanimous approval and some miners could migrate over to Ethereum Classic. Lastly, upgrades such as NESS and ETC Hash are expected to strengthen the network’s security ahead, which is bullish for ETC-USD given that Ethereum Classic was the target of 51% attacks in August 2020.
Dogecoin's social media presence led to the DOGE-USD price multiplying 12x before dropping off by the end of Q2 and Elon Musk proved to be the major catalyst with no less than 13 tweets mentioning Doge to his almost 60 million followers. Coinbase also listed DOGE on June 3 and ahead of the Coinbase listing, Reddit’s Wallstreetbets moderator reversed their ban on crypto discussions. A major Dogecoin pump post the unbanning demonstrated DOGE’s cult-like status within the meme culture and DOGE’s outperformance over the quarter is evidence of this phenomenon.
Chart of the week
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