Like every week, Sebastian Seliga from zondacrypto has prepared a summary of the week on the cryptocurrency market.
ZND breaks another sales record
The 2nd round of the ZND token sale has ended. The pool of 6.3 million ZND tokens was sold in a record 21 minutes. Thus, zondacrypto raised 497,700 EUR.
Bitcoin price exceeds $61,000
The cryptocurrency market has been in the spotlight again this past week after Bitcoin (BTC) rose 3.5% on Friday to above $61,700. The rebound was the result of the release of the Fed’s July meeting minutes (August 21), which suggested a possible interest rate cut at the next meeting in September. This is positive news for the market, especially for higher-risk assets such as cryptocurrencies, which often react to falling bond yields.
Ether (ETH) also saw a rise during this time, albeit a smaller one – by 1.5%. Solana (SOL) remained in the downtrend, losing 0.6%.
It is worth noting the words of Fed Chairman Jerome Powell, who in recent comments emphasized that a rate cut is possible if macroeconomic data is in line with expectations. The Fed minutes clearly indicate that a majority of the Committee members are ready to support a 25 basis point rate cut, which would bring the key interest rate from 5.25% to 5%.
Positive response in traditional markets
In addition to the cryptocurrency market, traditional stock indices also reacted positively to the news from the Fed offices. The S&P 500 gained 0.42%, the Nasdaq rose 0.57%, and the Dow Jones recorded a 0.14% increase.
US Elections: A Risk Factor for Cryptocurrency Market?
Despite the forecasted rate cut, analysts from the Bitfinex exchange point out that the biggest impact on the cryptocurrency market may be the upcoming presidential election in the US. The increase in the chances of winning by Democrat Kamala Harris, who is currently almost equal in the polls with former President Donald Trump, increases uncertainty in the markets. On forecasting platforms such as Polymarket, Trump regained the lead at first, but his chances fell after the TV debate from 52% to 49%, which had a negative impact on the price of bitcoin (temporarily falling to just over $ 56,000).
Ethereum: ETFs Fail to Meet Expectations
The Ethereum market is seeing mixed signals. Despite initial enthusiasm around spot ETH ETFs, the market has seen significant outflows, most notably from Grayscale. A withdrawal of 136,700 ETH since the funds’ launch has prompted a clear correction in the market, although some funds, such as BlackRock’s iShares Ethereum Trust, are still seeing inflows. Investors are cautiously watching developments, hoping for positive developments.
Grayscale launches new XRP fund, price rises 8%
Grayscale is launching a new XRP-focused investment fund (trust), which has seen an 8% increase in the token’s value. The launch of the fund has also sparked speculation about a potential XRP ETF, which has piqued investor interest. However, analysts remain skeptical about the SEC’s swift approval of such an ETF, due to the ongoing legal battle between Ripple and the SEC and the need to clarify the status of cryptocurrencies as securities.
Ethereum: Layer 2 Decentralization in Focus
Ethereum co-founder Vitalik Buterin has announced a new approach to evaluating layer 2 (L2) projects, indicating that starting next year, he will publicly recognize only those that achieve level 1+ in decentralization. His stance comes amid growing criticism of the centralization of many L2 solutions, which now account for over 80% of transactions on Ethereum.
Summary
The past week has brought significant changes to the cryptocurrency market. Optimism over a potential Fed rate cut, rising tensions over the US election, and mixed results in the ETF market are all driving increased volatility that investors need to consider as they plan their next steps.
