Bitcoin saw a 3.46% rise from July 7 to July 14, reaching a price of US$31,222 at 7:30 p.m. on Friday in Hong Kong. This marked a significant milestone as the world’s largest cryptocurrency by market capitalization has been trading above the US$30,000 mark for the entire week. In addition, Ether, the second-largest cryptocurrency, experienced a 6.88% increase over the week, reaching a price of US$1,992.
The surge in Bitcoin’s price can be attributed to a major win for the crypto industry. On Thursday, U.S. District Court Judge Analisa Torres ruled that Ripple Labs’ programmatic sales of its XRP cryptocurrency did not qualify as financial securities. This decision came after a 30-month legal battle and offered a boost of optimism to crypto investors. As a result, Bitcoin surged to US$31,736 on Friday, while Ether reached a high of US$2,022, the highest since May 2022.
Lucas Kiely, the chief investment officer of digital asset platform Yield App, stated that Thursday’s landmark ruling on Ripple’s XRP tokens contributed to the boost in Bitcoin’s price. He further mentioned that positive news from institutions could continue to drive Bitcoin prices higher.
In other positive news, Europe’s first Bitcoin exchange-traded fund (ETF) is expected to be publicly listed this month, following a 12-month delay. This news came after a series of spot Bitcoin ETF applications in the U.S. from financial heavyweights such as BlackRock, WisdomTree, and Fidelity Investments. These developments are crucial for boosting investor sentiment and maintaining Bitcoin above the US$31,000 mark.
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However, there were also concerns in the market. Boston-based Circle Internet Financial Limited, the issuer of the USDC stablecoin, announced workforce reductions and investment in non-core activities to refocus its business. The exact number of layoffs remains unknown. Additionally, there were rumors that the Bank of America was closing customer accounts related to Coinbase, a leading cryptocurrency exchange. Coinbase’s CEO, Brian Armstrong, conducted a Twitter poll to gather customer feedback on the matter. These factors added uncertainty and raised concerns among some investors.
In terms of the macroeconomy, U.S. inflation fell to 3% in June, down from 4% in May. This decrease represents the slowest rate of inflation since March 2021. Max Breus, the co-founder and CEO of Ubix Network, emphasized the importance of macroeconomic developments for the crypto market, stating that global factors, such as the stock market, bond market, and the Federal Reserve’s rate policy, significantly impact investor sentiment.
As of Friday, the global crypto market capitalization stood at US$1.25 trillion, up 6.83% from US$1.17 trillion a week ago. Bitcoin accounted for 48.5% of the market with a market cap of US$606 billion, while Ether represented 19.2% with a value of US$239 billion.
The top-performing cryptocurrencies of the week were XRP and XLM. XRP experienced a 72.16% increase, reaching US$0.8036, boosted by Ripple’s court win against the Securities and Exchange Commission. XLM, the native crypto of the Stellar blockchain, had the second-largest gain, rising by 57.57% to US$0.1515, driven by the positive market sentiment following the court ruling.
Looking ahead to next week, investors will be attending the Ethereum Community Conference (EthCC) in Paris, France, which is the largest Ethereum-themed convention in Europe. On the macroeconomic front, the Federal Reserve will release its latest balance sheet, providing insights into the Fed’s assets and liabilities. Investors will also pay attention to a speech by Michael Barr, the vice-chairman of the U.S. Federal Reserve, for clues on future monetary policy decisions.
Both Kiely and Breus highlighted key price levels for Bitcoin. Kiely emphasized that Bitcoin needs to hold above US$30,500 to maintain its bullish momentum, while Breus stated that US$31,000 is a crucial level to watch. If Bitcoin can close above US$31,000, the next target could be US$32,500.
In conclusion, Bitcoin’s price remained above US$30,000 throughout the week, driven by positive developments such as the court ruling in favor of Ripple and the anticipation of Europe’s first Bitcoin ETF. However, there were also concerns related to Circle Internet Financial’s layoffs and rumors of Bank of America’s account closures. The macroeconomic environment, including factors like inflation and global market trends, also played a significant role in shaping investor sentiment. As the crypto market continues to evolve, market participants will closely monitor upcoming events and regulatory decisions that could impact prices and market sentiment.
