Cryptocurrency Market Review, August 5th

At the end of the week, the cryptocurrency market returned to green values ​​and the prices of the market’s largest assets showed positive momentum with even greater potential next week.

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Ethereum leads the top 10 of the market

Following the publication of Arthur Hayes’ Medium article, in which the creator of the derivatives trading platform Bitmex predicted that Ethereum would hit $ 5,000, the price of the second largest cryptocurrency in the market hit a local high of 1,724. dollars with a price increase of about 10%. in the past 24 years. hours.

Source: Trading view

Hayes offered several scenarios where Ether’s price could reach new highs. The main reasons for this new rally are the successful implementation of the Merge Update and the reversal of the Fed’s aggressive policy.

The above reasons will most likely lead to a rally for any type of digital currency given the risky and volatile nature of this type of asset. The Fed’s actions directly impacted the digital asset market. This took a hit after institutional investors began exiting the sector en masse due to declining demand for risk exposure.

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Bitcoin looks promising

This week’s market was the real test for Bitcoin, as the first cryptocurrency faced a seven-day streak of losses and dropped below the $ 23,000 price threshold, which could have been a sign of a future decline. Fortunately, Bitcoin bulls withstood the growing selling pressure and left BTC in a local uptrend.

Bitcoin chart
Source: Trading view

This week, Coinbase announced a partnership with Blackrock and entered into an agreement to provide access to cryptocurrencies to the fund’s clients, which is sure to attract millions, if not billions of trading volume in the digital asset market.

Following the news, Coinbase’s share price skyrocketed by nearly 70%, causing trading to stop due to abnormal volatility. Bitcoin and the cryptocurrency market also benefited from the news, with the market experiencing high trading volume and purchasing power in Bitcoin and other cryptocurrencies.

Potential risk factor for the market

The only risk factor we can see now is the recovery of the US dollar against the exchange range, as the DXY index has reached the local support level of the 50-day moving average.

The rebound of the US dollar would not be good for assets like Bitcoin or gold, as investors invest more in safer options rather than opting for USD-denominated assets as the US currency strengthens in the market.

As of press time, DXY is trading around 106.6 as Bitcoin changes hands at the $ 23,000 level.

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