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The cryptocurrency market has declined 2.9% in the past 24 hours to $2.08 trillion, from levels near $2.15 trillion, which had been resistance over the past ten days. Despite muted optimism in stocks following inflation data, cryptocurrencies have failed to find sufficient demand. The negative performance of cryptocurrencies could herald a new wave of outflows from risk assets, especially ahead of the weekend.
Bitcoin fell to $58,000, a loss of 4.5% in 24 hours. The sell-off began with the crossing of the 50-day and 200-day moving averages. According to statistics, when a “death cross” forms, it takes an average of a month to return to the starting point.
Ethereum, which returned to $2,620, saw a similar decline. The rally lost momentum near the 61.8% level of the initial decline, creating the risk of a further pullback to $500.
Current events context
Cointelegraph writes that Solana’s (SOL) rise to $190 seems more realistic than the $300-$1,000 rally due to competition from L2 for Ethereum and the risks of a decline in meme coin hype. Journalists called SOL overvalued compared to L2 tokens for Ethereum.
Former TON Foundation employees have created a venture capital firm, TON Ventures, and raised an initial investment of $40 million. The project will support startups on The Open Network (TON). The TON cryptocurrency has reached new highs in more than three weeks, surpassing $7 in a single day.
According to 10x Research, the rise in stablecoin issuance could be key to Bitcoin’s continued rise. The issuers of the largest stablecoins, Tether and Circle, issued nearly $2.8 billion in assets last week, indicating that some institutional investors are injecting new capital into the cryptocurrency market.
According to SEC filings, investment bank Goldman Sachs and trading firm DRW Holdings own crypto ETFs worth $418.7 million and $238.6 million, respectively.
According to Growthepie, the daily number of transactions in Ethereum-based Layer 2 (L2) solutions has reached a record 12.5 million, an increase of more than 140% since the beginning of the year. The Base blockchain, powered by Coinbase, has largely driven this growth. At the same time, the number of active addresses in the L2 segment has started to decline, peaking in mid-July.
According to Token Terminal, BlackRock is preparing to launch its blockchain, which will be an analogue of Coinbase’s L2 network.
