Time to buy Bitcoin?

Reading time: 5 minutes

Ethereum breaches $3K again as ‘finish line’ approaches

Key points:

  • Netflows supported ETH’s hike past $3,000.

  • Spot Ethereum ETFs’ launch expected very soon.

News - Within a week of dropping below $3,000 on the back of Bitcoin’s own depreciation, ETH has recovered somewhat to trade above that level again.

This price hike was supported by a number of factors, including a hike in volumes and investor interest, plus growing anticipation that Spot Ethereum ETFs are right around the corner. In fact, an exec even claimed that we are close to the “finish line” on the back of revised S-1s being submitted to the SEC.

All the bullish signs - While Bitcoin inching towards $60,000 did have a corresponding effect on ETH’s price, it wasn’t the only factor at play. For instance, the altcoin’s chart saw the appearance of a bullish double-bottom price action pattern. A breakout here can push ETH to as high as $3,250 or $3,300.

Similarly, the last few days have seen a surge in accumulation across the altcoin’s market - A sign of investors and holders having sustained confidence in ETH’s price.

Finally, following a dip on 7 July, the last few days have also seen a marked increase in Ethereum’s trading volumes.

With Spot Ethereum ETFs expected soon, these are only likely to appreciate over the long term.

Finish line is almost here - That’s what Bitwise’s Chief Compliance Officer thinks, with the exec stating,

“We’re close to the finish line of the launch.”

Right now, the spot Ether ETF issuers are waiting for the SEC to sign off on their amended S-1s after the latest round of feedback from the regulators. Once they go live, analysts expect upto $15 billion in inflows within just 18 months of trading.

A ‘buying opportunity’ for Bitcoin may be opening up soon

Key points:

  • Recovery on the price charts pushed BTC closer to $60,000.

  • Metrics and indicators underlined the cryptocurrency’s bullishness too.

News - Within just over a week of BTC falling to as low as $53,000 on the charts, it would seem that the world’s largest cryptocurrency is on the road to recovery. In fact, at the time of writing, it was closing in on $60,000 on the back of a set of positive indicators and metrics.

This could be good news for holders and investors alike, especially since a buying opportunity could be forthcoming for the market soon.

More details - The cryptocurrency’s Puell Multiple is at the forefront of these bullish indicators. It tracks the profit miners on the network make by comparing BTC’s daily issuance value to its 365-day moving average. According to the same, BTC is currently undervalued, with investors likely to jump in and spur the price after they “buy the dip.”

Back in 2016 and 2020 too, when the Puell Multiple dipped as it has recently, Bitcoin’s market saw steep bouts of price appreciation soon after.

Here, the timing is particularly interesting. Especially since the PM’s findings must be assessed in the context of Bitcoin’s MVRV Ratio testing its support level recently.

This ratio recently hit its lowest point in months, a development that ordinarily fuels a change in long-term holders’ sentiments. However, Bitcoin was unaffected by the same - A sign of the market’s bullishness.

Caution is key - It’s worth pointing out though that Bitcoin isn’t out of the woods just yet. The market is already feeling the heat thanks to the expected payouts from Mt. Gox.

With the German government offloading its seized haul of BTC too, selling pressure might remain high in the short term.

Cardano takes final step towards Chang hard fork

Key points:

  • Node 9.0, the latest version of the Cardano node validator software, was released on 08 July.

  • Chang is meant to beckon the “Age of Voltaire” on Cardano’s roadmap.

News - Cardano’s much-hyped Chang Hard Fork is now finally ready for launch after its development team released Node 9.0. Chang will kickstart community-centred governance across the Cardano blockchain.

The node’s release was accompanied by a statement from Founder Charles Hoskinson who simply said,

“Node 9.0.0: Chang hard fork is ready.”

The hard fork was once expected to be ready by June. However, the deadline passed.

Age of Voltaire - Once the threshold of 70% SPOs is hit, Chang will push Cardano into the “age of fork.” This is expected to make wholesale changes to the blockchain, especially on the decentralized governance front.

For example, Chang will eventually allow for the appointment of DReps, who themselves will be elected by ADA token holders. These DReps will then work on a constitution for Cardano, which will then be used as the governing law across the network.

These next steps have been outlined by the development team in Cardano Improvement Protocol (CIP) 1694.

Chang’s impact - Over time, it is expected that Hoskinson will step down from some leadership roles at Cardano, while still being part of the development team.

Here, it’s worth noting that it’s still too soon to say what the effect of Chang will be on ADA’s value on the price charts.

Italy’s central bank to release crypto-guidelines soon

Key points:

  • Incoming crypto-guidelines meant to be in adherence of new MiCA rules.

  • Bank of Italy’s Governor not positively receptive to Bitcoin, Ethereum.

News - The EU’s crypto policy as a whole is set to go through wholesale changes on the back of nation-states’ adoption of MiCA rules. Italy is no different, with its central bank now set to release crypto guidelines in accordance with MiCA.

This was first revealed by Governor Fabio Panetta during a speech before the Italian Banking Committee on 09 July.

An eye on crypto - Here, it’s worth pointing out that the release of these guidelines will follow recent reports which claimed that Italy will increase its scale of surveillance on the crypto-market.

Additionally, the country is also contemplating hiking fines to a range of €5,000 - €5 million for a host of crypto-violations.

“Akin to a gamble” - While the country is on the road to a proper crypto policy, it should be mentioned that Panetta, for his part, isn’t too keen on cryptocurrencies like Bitcoin and Ethereum.

In fact, during the same speech, the exec suggested BTC and ETH are “unbacked crypto assets” with “no intrinsic value.” According to him, they don’t satisfy the characteristics of money and are “akin to a gamble,” one taken advantage of by crypto investors.

Did you know?

  • Bitcoin’s whitepaper never used the term ‘cryptocurrency.’ Instead, Nakamoto referred to the blockchain as a ‘timestamp server.’

  • All you need to participate in the crypto space is an internet connection. This is the reason why the community spans borders and timezones. 

  • According to CoinGecko, over 14,000 of the 24,000 cryptos listed since 2014 have ‘died.’ Reasons are many, including desertion, lack of node development, frauds, etc.

Top 3 coins of the day

Celestia (TIA)

Key points:

  • TIA’s downtrend has been going on for months.

  • Latest uptick not enough to invalidate this long-standing market trend.

What you should know - TIA’s price charts have consistently headed south since early 2024, with the altcoin unable to record gains over a steady period of time. Despite the altcoin registering gains of over 54% in less than a week, the market downtrend remained as strong as ever. It would seem thus that Celestia would require a longer period of price appreciation to reverse its fortunes. This was highlighted by its indicators too, two of which were flashing green at press time. While the MACD line barely crept above the Signal line, the Parabolic SAR’s dotted markers were found under the price candles.

Sui (SUI)

Key points:

  • At press time, SUI was trading at $0.74 on the charts.

  • Like TIA, SUI’s uptick didn’t reverse its prevailing market trend.

What you should know - At the time of writing, the altcoin was up by 10% in just under 24 hours on the charts. However, this wasn’t enough to initiate a new uptrend for SUI, with the crypto’s indicators still largely in the red. In fact, the Bollinger Bands suggested that more volatility could be incoming. What this means is that if SUI falls again, it might be a significant fall. On the contrary, the RSI was inching towards equilibrium, despite SUI being close to the oversold zone for most of the last few weeks.

dogwifhat (WIF) 

Key points:

  • Popular memecoin now back to trading around its March levels.

  • WIF lost over 25% of its value in just 7 days.

What you should know - Ranked 56th on the price charts, WIF has fallen significantly since its highs in April and March. In fact, this downtrend has been more pronounced since the month of June, with the memecoin following the wider market’s lead to head south. So was the case over the last 7 days too as WIF lost over 25% of its value. The altcoin’s bearishness was underlined by the fact that while its Moving Average was under the price candles, the MACD was undecided since it was too close to the Signal line.

How was today's newsletter?

Login or Subscribe to participate in polls.