Bitcoin bull run brewing?

August 01, 2024

Reading time: 5 minutes

Ripple commits $10 Million to innovative tokenized U.S. treasury bills

Key points:

  • OpenEden issues TBILL tokens backed by real U.S. Treasuries and repos.

  • This is the first time such a product will be available on XRPL.

News - Ripple is making a splash in the growing world of tokenized assets by allocating $10 million to a digital version of U.S. Treasury bills (T-bills) on the XRP Ledger (XRPL). This marks the first time such a product will be available on the XRPL blockchain.

OpenEden, a tokenization platform, is issuing these T-bills as TBILL tokens. The assets backing these tokens will be invested in a combination of short-term U.S. Treasuries and reverse repurchase agreements (repos) secured by U.S. Treasuries.

This move by Ripple signifies a broader trend in the cryptocurrency industry – the tokenization of real-world assets. This isn't the first time established institutions have dabbled in tokenized assets. In March, BlackRock, the world's largest asset manager, launched its USD Institutional Digital Liquidity Fund on the Ethereum blockchain. This fund is backed by U.S. Treasury bills, repo agreements, and cash.

Ripple's $10 million allocation is just the first part of a larger investment plan. The company intends to invest in tokenized T-bills from OpenEden and potentially other issuers.

Bitcoin accumulation hits new high as whales acquire 84,000 BTC in July

Key points:

  • The accumulation occurred during July’s price dip and brief recovery phases.

  • Analysts predict a potential bullish breakout from Bitcoin’s consolidation phase.

News - Large Bitcoin investors, often referred to as whales, have amassed a staggering 84,000 BTC in July, marking the most significant accumulation since October 2014.

This buying spree, worth approximately $5.4 billion, primarily occurred during Bitcoin's price dip in early July and subsequent consolidation phases.

Market analysts interpret this behavior as a bullish signal, suggesting that these whales anticipate a substantial price surge following the current consolidation period between $50,000 and $70,000.

The recent optimism is further fueled by the possibility of an interest rate cut by the Federal Reserve in September, which could inject liquidity into the market and boost investor appetite for riskier assets like Bitcoin.

While Bitcoin's July performance was relatively muted with a 3% gain, the underlying accumulation by major players points to a potential upward trajectory in the coming months. At press time, the king coin was changing hands at $64,622 with a 2% fall over the last day.

Ether ETFs could garner $10 Billion in first year: Analyst explains

Key points:

  • Ether price could surge to $6,000 with substantial ETF inflows.

  • Its limited supply could amplify the impact of ETF inflows.

News - Spot Ether ETFs are poised to attract significant investment, with projections estimating up to $10 billion in assets under management within their first year of trading. This forecast comes from Katalin Tischhauser, Head of Investment Research at Sygnum Bank, who bases her prediction on the anticipated success of spot Bitcoin ETFs.

Tischhauser anticipates Bitcoin ETFs to garner between $30 billion and $50 billion in inflows during their initial year, with Ether ETFs following suit. While acknowledging that Ethereum's lesser brand recognition might lead to slower adoption, she expects Ether ETFs to capture 15% to 35% of the inflows seen by Bitcoin ETFs, resulting in a $5 billion to $10 billion asset base.

Despite the upcoming Ether ETF launches, the asset's price has remained relatively stagnant. Tischhauser attributes this to the market's anticipation of underwhelming inflows.

However, she believes that any substantial inflows into Ether ETFs could significantly impact the cryptocurrency's price, potentially driving it towards $6,000. The limited supply of Ether, coupled with strong ETF inflows, could create demand shocks and boost market sentiment.

Riot Platforms’ quarterly loss hits $84.4M following Bitcoin halving

Key points:

  • Bitcoin mining output decreased by 52% due to the halving event.

  • Mining costs surged 340% year-over-year.

News - Riot Platforms, a Bitcoin mining company listed on NASDAQ, reported a net loss of $84.4 million for its latest financial quarter, despite the stable price of Bitcoin.

The substantial loss is attributed to a significant 52% year-over-year decrease in the number of Bitcoin mined between 1 April and 30 June 2024. This drop follows the recent Bitcoin halving in April, which reduced the mining reward from 6.25 Bitcoins per block to 3.125, thereby doubling the cost of mining.

In addition to reduced mining output, Riot faced considerable non-cash expenses, including $32.1 million for stock-based compensation, and $37.3 million in depreciation and amortization.

The company highlighted that the average direct cost to mine a single Bitcoin rose dramatically to $25,327 during this quarter, compared to just $5,734 per Bitcoin for the same period in 2023.

Despite these challenges, Riot Platforms reported an increase in mining revenue, reaching $55.8 million, up from $49.7 million in the previous year’s quarter. This revenue boost reflects the higher average price of Bitcoin, which partially offset the increased mining costs.

Interesting facts

  • The decentralized physical infrastructure network (DePIN) sector is getting higher traction in 2024. DePINs are essentially networks of physical infrastructure built and managed in a decentralized way. Some famous DePIN projects are Filecoin, Arweave, Render, and Internet Computer.

  • Bitcoin bulls like Michael Saylor, Former CEO of MicroStrategy, believe that the king coin will hit $100k by the end of 2024.

  • Even though meme coins are high-risk investments, they register huge demand and high trading volume in every bull run.

Top 3 coins of the day

Polkadot (DOT)

Key points:

  • At press time, DOT traded at $5.34 with a 6.50% weekly loss.

  • Bears were dominating its daily chart with less buy pressure.

What you should know - Polkadot (DOT) has been struggling to maintain its $5.715 support level for over four months, predominantly trading sideways. However, on 27 July, DOT experienced a downward breakout, with the price falling to $5.26 by 1 August. This decline represents a 55.54% drop from its peak of $11.87 on 14 March. The current Relative Strength Index (RSI) is at 30, placing DOT in the oversold territory. This RSI level suggests that the cryptocurrency may be due for a trend reversal or a potential rebound. Investors should monitor the situation closely, as a trend reversal could signal an opportunity for recovery or further volatility.

Toncoin (TON)

Key points:

  • TON has been on an uptrend since 5 March.

  • It reached its all-time-high at $8.25 on 15 June.

What you should know - Toncoin reached its all-time high on 15 June but has since fallen by approximately 18.42%. Currently, the $7.99-$8.20 range serves as a significant resistance level, with buyers making efforts to break through it. On the downside, the $6 support level has held firm; however, a breach of this level could see the price drop to the next demand zone around $4.30. At present, the MACD and signal line are positioned below the neutral line, indicating bearish momentum. However, they are poised for a potential bullish crossover, suggesting a possible reversal and upward movement in the near future.

Key points:

  • LINK was trading at $12.95, at the time of writing.

  • It was up by 1% over the last seven days.

What you should know - Chainlink was relying on the lower band of the Bollinger Bands as support at press time, indicating stable trading with limited volatility over the past three months. The price movements have been modest, with a local high of $22.87 reached on 11 March. The narrow width of the Bollinger Bands reflects this reduced volatility. Currently, the critical support level to watch is $11.13; a breach of this could prompt LINK to test its 9-month support level at the $10 psychological mark. Investors should be cautious as falling below $11.13 might signal further downside risk, potentially pushing the price toward the lower support.

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