coindesk.com
Good morning. Here’s what’s happening:
Prices: Bitcoin remains stagnant at $29K, teasing $30K. What will it take to push it past $30K?
Insights: Crypto has new radicals, and DeFi isn't dead.
Prices: Bitcoin is a Stablecoin?
As Asia’s markets open after the weekend, bitcoin (BTC) is at $29,012 while ether (ETH) is changing hands at $1,827 – which made for a volatility-free weekend.
“Another week of relative stability for BTC and ETH bodes well for bulls,” Joe DiPasquale, CEO of BitBull Capital said in a note. There have been some developments in the space, ranging from the Curve hack to more altcoin mania on Base. The market has, however, not reacted too harshly, and ETH has managed to defend $1800.”
Aside from shenanigans in Decentralized Finance (DeFi), which never fails to deliver, the broader crypto markets are expected to be slow until a spot bitcoin exchange-traded fund (ETF) is approved.
The amount of liquid and highly liquid Bitcoin supply is at its lowest since 2018, while illiquid supply reaches all-time highs, and long-term holders are stashing coins away, Blockware Intelligence wrote in a recent newsletter. Meanwhile, there's significant positive momentum in the creation of new addresses, indicating a general increase in on-chain demand, similar to trends observed exiting the bear market in 2019.
In a recent note, K33 Research’s Vetle Lunde, calls July’s trading volume “anemic” but writes that the market is on a precipice of change.
The crypto market experienced an atypical drought with remarkably low trading volumes and BTC volatility near five-year lows, but the low activity could lead to a sudden eruption of volatility, he writes, with potential catalysts including ETF filings, ongoing legal matters, and structural pressures, prompting strategies such as passive long volume exposure and gradual BTC accumulation.
“A deep crypto sleep tends to be followed by a violent wake-up. The market’s volatility pressure is about to climax, and that an eruption is near," he said in the note.
The only question is, wen?