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Crypto Weekly Review & Outlook July 26 - August 2, 2021


market sentiment about Bitcoin and Ethereum is positive over the past week

News Highlights



Markets


  • The entire market value of all crypto assets has moved in a range from $1.27 trillion to $1.68 trillion over the past week and as of this writing sits slightly above the $1.6 trillion mark.


  • BTC-USD has gained around 3.5% over the last seven days. Earlier in the week, the price touched the $40k level multiple times before breaking out above $42k on Saturday. However, the pair finally ended its winning streak of 10 consecutive days of gains yesterday (not seen since 2013). The price recently fell through $40k and is sitting near $39.6k.


  • ETH-USD rose approximately 10.3% during the past week. The pair managed to break above the $2,600 level, reaching its highest price since June 15. However, it has since moved slightly lower and is currently treading water in the $2,500-$2,600 range.


  • XRP-USD rose about 14% over the past week. On Wednesday, it had a jump of around 15% on news of a new payment corridor between Japan and the Philippines showcasing a compelling use case. It started the week at $0.65 and is currently hovering around $0.75.


The Week Ahead


  • Will the next crypto outperformers come from the gaming token space? Many gaming-focused cryptos saw MASSIVE gains last week. These include Axie Infinity, MyNeighborAlice, Enjin Coin, Decentraland, and The Sandbox. The Space is also seeing a significant spike in social and trading volume. The gaming crypto category’s market cap is only at $7.7B while the Defi space’s market cap is at $90B indicating plenty of room to grow. As higher prices (and interest) beget higher prices (and more interest), the gaming token category should be on investors’ radar.


  • Ripple’s XRP is definitely one to watch as it eyes a sustained break above the 200 DMA of $0.7774 with the next goal of reclaiming the $1 level. It has been consolidating its gains since the Wednesday jump due to the Japan-Philippines payment corridor news. Support can be found at the 50 DMA of $0.67 and further resistance can be found at the 100 DMA of $0.9343


  • Starting today, the German institutional funds (Spezialfonds) will be able to invest up to 20% of their $1.8T worth of assets into cryptocurrencies due to the Fund Location Act coming into effect. This equates to a maximum amount of $415B entering the market. It is believed that the funds will be conservative and stay far below the 20% threshold, however, this new source of demand is definitely bullish for the market.


  • Investors have been eagerly awaiting Ethereum’s London hard fork alongside the much-hyped EIP-1559 which could potentially turn Ether into a deflationary asset. The upgrade is currently slated for the early hours of August 5th. Staking on Ethereum 2.0 also continues to grow in anticipation of the network’s switch from Proof-of-work to Proof-of-stake. Just under 6.5 million ETH chain or around US$17 billion worth of ETH is now staked to this version of Ethereum. Furthermore, the trading volume of Ether grew faster than that of Bitcoin in the first half of the year, according to a Coinbase Global Inc. report. Lastly, Ethereum “Millionaire Tier whales now hold 39.2% of the ETH supply, the largest portion owned in nearly three months. These “Millionaire Tier” wallets hold from 1,000 to 100,000 ETH each.


  • Institutional investors are returning to the crypto market, with around $2.8 billion in Bitcoin (BTC) being