Bitcoin’s value edged up by 0.79% between August 4 and August 11, reaching $29,362 as of 7:20 p.m. on Friday in Hong Kong. The cryptocurrency, which briefly surpassed $30,000 twice during the week, retreated below that support level. In comparison, Ether climbed by 0.72% over the week to settle at $1,846, remaining beneath the $1,900 support level since July 23.
The crypto market experienced a rather subdued start to the week. Over the past few months, the volatility in the cryptocurrency space has diminished somewhat as investors are increasingly focusing on the stock market, which has exhibited stronger price dynamics recently.
Lucas Kiely, the chief investment officer of digital asset platform Yield App, noted, “The launch of PayPal’s U.S. dollar-pegged stablecoin on the Ethereum blockchain is a significant moment in the crypto ecosystem.” This development is seen as a move to bridge the gap between conventional fiat currencies and the blockchain for both consumers and merchants.
Bitcoin saw a brief surge to a weekly high of $30,144 on Wednesday, two days following PayPal’s announcement, only to slide back below the $30,000 threshold later that same day.
Phillip Lord, the president of crypto payment app Oobit, suggested that PayPal’s new stablecoin could lead to increased mainstream participation in the cryptocurrency market. He stated that this move will likely attract more American users for daily transactions, subsequently benefitting the broader crypto ecosystem.
Additionally, Coinbase Global unveiled the public launch of its Ethereum layer-2 blockchain Base on Wednesday.
The U.S. Consumer Price Index (CPI) report released on Thursday indicated a year-on-year inflation rise of 3.2% in July. The core CPI, which excludes food and energy prices, increased by 0.2% for the month, aligning with initial estimates.
As of Friday at 7:20 p.m. in Hong Kong, the global crypto market capitalization stood at $1.17 trillion, representing a 0.86% increase from $1.16 trillion the previous week. Bitcoin’s market cap accounted for 48.8% of this total, while Ether held 18.9%, with a market cap of $571 billion.
In terms of notable market movements, the Shiba Inu memecoin emerged as the top gainer of the week among the top 100 cryptocurrencies, rising by 16.75% to reach $0.00001002. Rune, the native governance token of the ThorChain network, followed with a gain of 15.95% to settle at $1.08.
Looking ahead, Bitcoin’s critical weekly support is at $29,300, as pointed out by Aziz Kenjaev, a financial analyst at cross-chain liquidity protocol Entangle. Any dip below this level could potentially lead to further correction towards $28,600.
Investors are also keeping an eye on the minutes of the Federal Open Market Committee meeting in July for insights into the U.S. Fed’s interest rate decisions. The next Fed meeting is scheduled for September 19, and while market analysts predict a high probability of no rate hike, the situation remains dynamic.
Meanwhile, Canada’s ETH Toronto hackathon is set to kick off next week, featuring notable speakers from the crypto space.
