In our fast-paced crypto world, the centre of attention remains fixed on Bitcoin which continues to float in no-man’s land near $29K. The speculation running amok, debates when we will be celebrating crossing the $30k threshold. On this side of the coin, Joe DiPasquale of BitBull Capital contends that a comparatively calm week for Bitcoin and Ethereum can be seen as encouraging for those bullish on cryptocurrencies.
However, one can’t ignore the other side of the coin indicated by the languid trading volume in July, with K33 Research’s Vetle Lunde marking it as “anemic”. Lunde hints that when under the spell of a prolonged period of quietude, it usually ends by the cry of the volcano; in this case, the volcano being an unexpected burst of volatility triggered by ETF filings, legal matters, or structural pressures.
Though volatility is often seen as the inherent demon of investments, in the world of cryptocurrencies, it can also evoke enthusiasm. Lunde surmises that what the market currently interprets as a “deep crypto sleep” might abruptly be shattered, resulting in an avalanche of dynamism.
While the market waits with baited breath for Bitcoin’s enlightenment, there is much to digest within the rest of the crypto universe. Crypto has indeed nurtured quite a few radicals in recent years. Economic engineers dabbling with Ethereum’s smart contracts, notions of “Radical Markets” and “regenerative economics”, and platforms like “The Blockchain Socialist” challenging the predominantly libertarian mainstream, all add to the effervescent diversity of the crypto landscape.
A blanket of anticipation also veils Decentralized Finance (DeFi), which keeps a constant stream of developments. The sector’s trials continue, wrestling with concentrated power and the precariousness accompanying coders as financiers. Yet, a positive standpoint can view these hiccups as part and parcel of a blooming experimental stage that breeds the potential for innovation.
In other developments, Non-Fungible Tokens (NFTs) stage a slowdown, and the Global X placement of a fresh Bitcoin-ETF application nudged the cryptocurrency world. Not to mention, the revelations of the Q2 revenues by Coinbase, which saw them defy analyst estimates. Lastly, Fitch’s downgrade of U.S. debt and the implications it holds for Bitcoin and other open monetary systems cannot be abandoned.
Truth be told, the future of crypto holds many variables, yet one that never wavers is the relentless buzz it cultivates. Whether the jingle is that of celebration for milestones or contemplation on hurdles, crypto will continue to remain the talk of the town for the foreseeable future.
Source: Coindesk
