Bitcoin price remains below $66,000 at the time of writing, and altcoins are largely in the red. BTC price hit a new daily low at $65,555 as it prepares for Fed announcements. Standard market anxiety is prevalent before this meeting, and the movement of $2 billion worth of Silk Road assets has also contributed to this weakness.
First in Years for Crypto
BTC price fluctuations have accelerated the decline in altcoins over the months. This discouraging situation has caused at least some altcoins to fall below last year’s prices. However, since BTC is far beyond its 2023 price in this scenario, market dominance has significantly increased.
Last week, BTC market dominance (BTCD) reached its highest level since April 2021 at 52.7%. It is surprising that BTCD increased so quickly after the ETH ETF launch, having lingered around 48.2%. Gradually rising, BTCD jumped to 51.9% immediately after the launch.
With the ETH ETF launch, we saw the acceleration of Mt Gox repayments, US BTC movements, and many other significant developments. The leading cryptocurrency performed better than the overall market. Popular altcoins weakened significantly against BTC, followed by a three-year peak.
Crypto Predictions
Exits from ETHE ETF are not very different from exits from Grayscale’s GBTC. High-earning investors were rewarded for their purchases at large negative premiums. This means we could see net positive inflows into ETH ETF by the end of August, potentially triggering a new altcoin rally.
Moreover, we will bid farewell to the summer months with August. Investors expecting a rise in the third quarter may see market activity as the holiday season ends. The approaching November elections are particularly motivating. On the other hand, Mt Gox repayments will be largely completed. A statement from the trustee that most repayments are complete could be a catalyst for a rise.
In August, the Democratic candidate Harris’s approach to crypto is expected to become clear. Sources familiar with the matter mention efforts to improve the anti-crypto image. All these factors offer hope to investors who have been worn down for months.
BTC could initiate a new move targeting $78,000 before the end of the month if it can close above $72,000, potentially reversing excessive selling in altcoins.
