Crypto Today: MicroStrategy buys more Bitcoin, Ethereum struggles above $3,100, XRP loses 5%
MicroStrategy bought 169 Bitcoin worth $11.4 million per co-founder Michael Saylor’s announcement.
- Bitcoin hovers around $65,000 while Ethereum and XRP lag behind.
- Institutional demand for crypto is steady as ETFs note consistent inflows, VanEck CEO predicts $2.9 million target for Bitcoin.
Bitcoin, Ethereum and XRP update
- Bitcoin hovers around $65,000 early on Friday as crypto traders digest the US macroeconomic releases. MicroStrategy, one of the largest public holders of Bitcoin on their balance sheet, added another 169 BTC worth $11.4 million to their holdings per co-founder Michael Saylor’s announcement.
- Ethereum struggles to make a comeback to key resistance at $3,500, sustaining above crucial psychological support at $3,000 at the time of writing.
- XRP price suffers a correction in response to the sell-off, down to $0.57 on Friday as traders are uncertain about the Securities and Exchange Commission (SEC) vs. Ripple lawsuit outcome.
Chart of the day
LEO/USDT daily chart
LEO has been choppy on the daily timeframe for nearly four weeks now. The token could sweep liquidity in the Fair Value Gap (FVG) between $5.770 and $5.827 and rally towards its March top of $6.149. This would mark a nearly 5% gain from the current price of $5.862.
LEO could face resistance at the July 16 top of $5.994 and the April 1 top of $6.112.
Market update
- VanEck CEO Jan van Eck told Fox Business in an interview that Bitcoin is likely to hit $2.9 million per coin when adopted by centralized banks.
- Data from Frosty Metrics shows that DEX trading volume on Avalanche increased by 57% month-on-month and has doubled compared to July 2023.
.@avax DEX trading volume in July increased by 57% month-over-month and has doubled compared to July 2023.
— Frosty Metrics (@frostymetrics) August 2, 2024
Additionally, in July, @TraderJoe_xyz v2.2 has shown significant growth in trading volume since its launch on June 18th, already processing over $170 million. Trader Joe… pic.twitter.com/ynUHDdmImT
- Bitcoin bullish sentiment among traders hit a seventeen-month high despite the recent correction in BTC price.
Industry update
- Hong Kong’s largest online brokerage firm, Futu Securities, rolled out retail Bitcoin trading in the Hong Kong Dollar (HKD) and USD.
- Coinbase denies the rumor that their cryptocurrency exchange platform violated campaign finance laws with a $25 million donation to the Fairshake cryptocurrency super Political Action Committee (PAC).
1/3 Whether intentional or not, this is misinformation. Coinbase is not a federal contractor under the plain language of 11 CFR 115.1. USMS isn’t paying us with appropriated funds—something it made clear in the public RFP. https://t.co/72T22m8rI5
— paulgrewal.eth (@iampaulgrewal) August 1, 2024
- Messari Crypto data shows that in Q2 Polkadot governance activity and treasury usage hit an all-time high.
In Q2, @Polkadot extrinsics increased 47% QoQ, while governance activity and Treasury usage hit an ATH driven by OpenGov.
— Messari (@MessariCrypto) July 31, 2024
Plus, core developers unveiled Polkadot 2.0 components to address entry barriers and resource inefficiencies.
Access reporthttps://t.co/9bgzgbl6eE pic.twitter.com/FQTkV8lQAP
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
