After being as high as $117,000 following Fed Chairman Powell’s speech at the annual Jackson Hole symposium, bitcoin has slumped lower and is now trading at $110,000 after a whale reportedly sold over 24,000 bitcoin (approximately $2.4 billion) on Sunday triggering a flash-crash, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
With the price having broken and trading below the recent $112,000 support level, we could see further moves to the downside. In addition, and not a great omen, is that September tends to be a month of the year, more often than not, which has seen a negative performance for the bitcoin price.
There may be some hope for the crypto markets to mark a comeback this week though, as we have more economic data in the form of GDP (Gross Domestic Product) figures, unemployment claims and PCE (Personal Consumption Expenditures) inflation data coming out from the US.
A slowing economy, higher unemployment claims and cooling inflation may boost cryptoasset prices as traders and investors potentially buy the dip and ‘nail on’ a rate cut at the Fed’s upcoming September meeting.
BIGGEST MOVERS
$MORPHO, a decentralised lending protocol in the Ethereum and Optimism ecosystems, was one of the bigger movers in the crypto space last week, up 17%, as deposits surged past the $10 billion mark and the TVL (total value locked) reached a new high of $7 billion.
Issued loans on Morpho also rose, exceeding $3.6 billion, showing increased usage and potentially greater revenue going forward.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
Tether appoints former White House Crypto Council Executive Director
Tether, the company behind USDT and the largest stablecoin by market capitalisation, last week announced the appointment of former White House Crypto Council Executive Director Bo Hines as its Strategic Advisor for Digital Assets and US Strategy.
With the recent passing of the GENIUS Act, which created the first regulatory framework for stablecoins in the United States, Hines’ appointment could help Tether and the USDT stablecoin align with the new regulation, as well as expand and ultimately solidify operations in the US.
Kanye West launches token on Solana
Hip-hop artist Kanye West last week announced the launch of YZY, a token on the Solana blockchain, which will power the wider YZY Money ecosystem as well as serve as a currency to purchase merchandise from the yeezy.com website.
As well as a crypto token, the YZY Money ecosystem includes a crypto payment system called Ye Pay aimed at removing high transaction fees charged by traditional payments merchants and a spending card known as the YZY Card for spending the YZY token and the USDC stablecoin globally.
Within minutes of launching the market capitalisation of the YZY token broke above the $3 billion level, however it has since seen a sharp 75% decline, with the market capitalisation currently hovering around $800 million, further highlighting how fragile celebrity-endorsed tokens can be, particularly where a majority of the token supply is concentrated in a handful of wallets.
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