bitcoin
If you look only at the closing data on Friday, August 25 and September 1, then we can say that the price of bitcoin has not changed. Nevertheless, volatility was present last week. At first, BTC rose by almost 8%, and then fell by the same amount.
Source: tradingview.com
What caused the jumps?
It all started with the fact that on Tuesday, August 29, came the news of Grayscale’s victory in a lawsuit against the Securities and Exchange Commission (SEC). The essence of the dispute was that the regulator did not want to approve the bitcoin ETF, which the company applied for. The court, however, sided with Grayscale, reasoning that the SEC
did not provide some intelligible explanations why she has a different attitude to identical exchange products of different organizations.
Recall that earlier, many large companies (Blackrock, Fidelity and others) also submitted their applications for spot bitcoin ETFs. And the SEC has shown a more loyal attitude towards them, however, it has not yet approved a single one.
Perhaps the latter fact was the reason that the ardor of the bulls quickly dried up. On August 30, Bitcoin lost about 1.5%, and on August 31, more than 5%. interesting statistics
led Coinglass portal. According to his data, the fall was accompanied by mass liquidations (forced closing of crypto traders’ positions due to lack of collateral) for $103.58 million per day. Total thus out of the market were
eliminated 34,700 players.
Investors are still on their guard in connection with the possible tightening of monetary policy by the US Federal Reserve System (FRS). Recently, there has been progress in the fight against inflation, but the goal of 2% has not yet been achieved. This may lead to a further increase in the key rate by the US central bank and, as a result, put additional pressure on crypto investors.
According to technical analysis, there were no big changes in bitcoin over the week. The only immediate resistance level is now $28,145, the maximum that the coin reached in the week following the news of Grayscale’s legal victory. The support level remained at the same place – around $24,800.
Source: tradingview.com
Index fear and greed for the week has not changed. He went up from 39 to 40. Thus, fear still prevails over greed.
Ethereum
The dynamics of the ether repeated the movement of bitcoin: a sharp increase on Tuesday, August 29, followed by a fall. As a result, the price of the world’s second-largest cryptocurrency by capitalization has not changed much in seven days.
Source: tradingview.com
The main drivers of the movement in the price of ether were the same news that caused the sharp jumps in bitcoin. However, there was something interesting inside the ecosystem of the brainchild of Vitalik Buterin. The Federal Court of the Southern District of New York heard the lawsuit, which concerned the proceedings related to the Uniswap decentralized exchange. In the decision, one wording appeared that directly related to Ethereum. Judge mentionedthat ether is a crypto commodity along with bitcoin. This contrasts quite strongly with the statements of the head of the SEC, Gary Gensler, who argued that all cryptocurrencies except bitcoin are securities. And here a judicial precedent turned out, which refuted the position of the official.
In addition, the first smartphones from Ethereum, the Ethereum Phone, were sold during the week. A distinctive feature of the device is a completely open source operating system – ethOS.
Name can be interpreted in two ways: either the “Ethereum operating system” (Ethereum operating system), or, as “character”, translated from Greek. In any case, the release of a new product shows that the work of Buterin and the company does not stand still. And this, in turn, can inspire investors to new exploits.
According to technical analysis, the situation with the ether has not changed much. The resistance level is now the high of the previous week at $1,750, and the support level is the same as it was at $1,620. The overall trend remains bearish: the price is below the 50-day moving average (marked in blue).
Source: tradingview.com
Cardano
The Cardano cryptocurrency lost 1.65% of its value during the week from August 25 to September 1. The price of the ADA token continues to be in free fall for a month and a half, coming close to $0.25.
Source: tradingview.com
Cardano, like other cryptocurrencies, was impressed by Grayscale’s victory. Only ADA was affected much less than the same bitcoin: growth on Tuesday, August 29, was only 1.79%. Then the bears regained the initiative, dropping the course.
Since April, Cardano has fallen in price by more than 44%. At the same time, the number of discovered unique
wallets continues to grow. From April 1 to August 29, it increased by 240,000, equivalent to 6%, reaching 4.26 million. In summary, we can assume that there are quite a few investors who believe in the growth of Cardano.
In terms of technical analysis, there is a bearish picture. The nearest support level is $0.24, and the resistance level is the high of the last week near $0.28.
Source: tradingview.com
In short, during the last week of the summer of 2023, the volatility in the crypto markets was not zero. However, if you look at the overall results for the week, the prices of bitcoin and other cryptocurrencies have not changed much. While Grayscale won against the SEC in court, there is still no certainty regarding bitcoin spot exchange-traded funds. Yes, and fears due to the tightening of the policy of the US Federal Reserve are still present.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
