Bitcoin and Ethereum prices are regaining their steps after trading above $21k and $1,600 levels last week and falling to the $19k and $1,400 region over the weekend. As of this Tuesday, the price of Bitcoin is up 3%, trading back above $20k, while the cost of Ethereum is up 9%, currently trading at around $1,584.
While most digital assets are seeing profits, the 24-hour trading volume for BTC and ETH has increased significantly by 17% and 35%, respectively. This means the crypto market will likely continue its upward trend this week.
Key Focus
- Jerome Powell’s speech could have initiated the BTCUSD bottom.
- According to recent data, more than 20% of Vietnam’s population possesses Bitcoin, possibly positioning the country as the next global crypto hub.
- Vitalik advises users to update their clients before Merge on September 6th.
- CME Group, the world’s largest derivatives platform, has added BTC and ETH futures.
- The market is optimistic as the global crypto valuation approaches $1 trillion.
Crypto Market Price Update
Following Jerome Powell’s speech at the Jackson Hole conference last week, analysts believe Bitcoin has reached a bottom, and the price of BTC is unlikely to trade around the $19,000 region anytime soon.
In his speech, Powell acknowledged that restoring price stability will undoubtedly take some time, but efforts are being made to achieve this balance by bringing back inflation to 2%.
Powell explains:
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation.”
Traders responded to the Fed’s remark about the pain markets must endure to restore price stability and control inflation. Markets appear to settle this week as traders accept that the Federal Reserve will continue raising interest rates.
Moreover, Vietnam has the most significant population ownership of Bitcoin, at a staggering 20.27%, according to data on cryptocurrency adoption provided by triple-a.io.
Given that it ranked second globally for the “value of retail and all on-chain bitcoin transactions, ahead of nations like the USA and China,” Vietnam could be the next major global crypto powerhouse.
According to the triple-a.io survey on cryptocurrency ownership, 31% of Vietnamese respondents said they would use cryptocurrency for online payments, while 59% confirmed they were interested in investing in cryptocurrencies.
Ethereum Market Price Update
Since the beacon chain hard fork is set on September 6th, Vitalik Buterin, the founder of Ethereum, reminded all clients to stay updated as the merge gets closer every day.
Reminder: even though the merge is coming around Sep 10-20, the beacon chain hard fork is on Sep 6. Make sure to update your clients before then! https://t.co/x8GQCbtNNk
— vitalik.eth (@VitalikButerin) August 30, 2022
The merger, slated to take place from September 10 to 20, might provide ETHUSD with a significant bullish boost. Over the preceding few weeks, Ethereum had outpaced Bitcoin, even today, when ETH had increased by about 10% from the previous day.
Other Ethereum news includes the debut of the Bitcoin and Ether Euro futures by CME Group, the largest derivatives exchange in the world.
As stated in the official blog post, the launch of these new futures contracts is built on the solid growth and deep liquidity existing in U.S. dollar-denominated Bitcoin and Ether futures contracts.
Tim McCourt, Global Head of Equity and F.X. Products, CME Group, further highlights:
“Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.”
According to the announcement, Bitcoin Euro and Ether Euro futures contracts will be sized at 5BTC and 50ETH per contract and will also be cash-settled.
Futures contracts are expected to significantly increase market liquidity for cryptocurrencies and may create the momentum needed to drive prices for BTC and ETH to new highs. Large platforms moving forward with adding crypto assets to their platforms, like CME Group, is a very bullish indication, particularly during this eight-month bear market, which seems to be subsiding as BTC and ETH have managed to trade sideways over the past month.
The multiple and ongoing acceptance of cryptocurrencies at various business and technological levels has served as more evidence that we are more dependent on the blockchain and cryptocurrency sector than it is on us.
Bitcoin’s Next Move
Since the global crypto valuation is currently at $994 billion, up 4.23% over the last 24 hours, and is approaching $1 trillion, the markets are generally in comparatively good shape.
This week, we’ll likely see BTC and ETH continuing to make gains and try to build support at higher levels.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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