As the Asian markets resume trading after the weekend, Bitcoin (BTC) is holding steady at $29,012, and Ether (ETH) is trading at $1,827, marking a volatility-free weekend for the cryptocurrencies.
Joe DiPasquale, CEO of BitBull Capital, expressed optimism about the relative stability of BTC and ETH, suggesting positive signs for bullish investors. While there have been some recent developments in the space, such as the Curve hack and altcoin mania on Base, the market has not responded harshly, and ETH has successfully defended the $1,800 level.
Amidst the excitement in the Decentralized Finance (DeFi) sector, the broader crypto markets are expected to remain sluggish until a spot bitcoin exchange-traded fund (ETF) is approved.
A recent analysis by Blockware Intelligence highlights that the amount of liquid and highly liquid Bitcoin supply is at its lowest since 2018, while illiquid supply has reached all-time highs. Long-term holders are hoarding their coins, and there is a significant positive momentum in creating new addresses, indicating a growing on-chain demand reminiscent of trends observed during the exit from the bear market in 2019.
K33 Research’s Vetle Lunde acknowledges the “anemic” trading volume observed in July but believes the market is on the cusp of change. Despite the low activity, Lunde suggests that this could lead to a sudden surge in volatility. Potential catalysts for this include the approval of ETF filings, ongoing legal matters, and structural pressures. As a result, strategies like passive long-volume exposure and gradual BTC accumulation are being considered to cope with the potential eruption of volatility.
A new book by Joshua Dávila, The Blockchain Socialist, explores the widening of political thought within the crypto space. Ethereum’s smart contracts have attracted economic engineers interested in creating balanced societal structures, leading to theories like “Radical Markets” and “regenerative economics.” Platforms like “The Blockchain Socialist” challenge the largely libertarian mainstream of crypto by discussing American economic imperialism and promoting a left-wing perspective on privacy.
DeFi, which experienced a boom characterized by yield farming in the summer of 2020, has evolved since then. Decentralized platforms have emerged as leaders, adopting professional expansion strategies. However, the sector still faces challenges related to concentrated power and the complexities of programmers acting as financiers, reflecting an ongoing experimental phase with potential room for mistakes.
While the weekend witnessed stable prices for BTC and ETH, the crypto market is on the verge of change. Analysts predict the possibility of increased volatility, and the space continues to evolve with diverse political ideologies and DeFi’s maturation. As the week unfolds, investors and enthusiasts eagerly await potential catalysts that may trigger significant movements in the cryptocurrency market.