The cryptocurrency landscape exhibited mixed trends as Bitcoin climbed slightly while NFT (Non-Fungible Token) transactions surged, and Nvidia spearheaded a rally on Wall Street.
Bitcoin's Value Sees Incremental Growth: Bitcoin experienced a slight uptick of 0.35% over the past 24 hours, reaching a value of $29,408.45 by 07:30 a.m. in Hong Kong. Despite trading within the range of $29,000 to $30,600 for seven consecutive weeks, this relatively low volatility might benefit the cryptocurrency's adoption. Nigel Green, CEO of deVere financial management group, emphasized that this stability can attract institutional investors who are usually deterred by extreme price fluctuations. Moreover, it offers a more dependable store of value and a medium of exchange for businesses and consumers alike.
Bitcoin's Long-Term Holder Level Indicates Continued Interest: Contrary to misconstruing low volatility as low investor engagement, the long-term holder level of Bitcoin, indicating the percentage of holders retaining the cryptocurrency for over 155 days, reached its all-time high in early August. Matteo Greco from Fineqia International suggests that the lack of trading activities is partly due to the recent summer months and does not reflect a waning interest in the digital asset market.
Digital Asset Investment Products Experience Inflows: Following three weeks of outflows totaling around $144 million, digital asset investment products attracted a $29 million inflow in the week ending August 11. This change in trend has been attributed to weaker-than-expected U.S. inflation data, leading to speculations that a rate hike in September is less likely.
Ether and Other Cryptocurrencies Record Varied Movements: Ether, the second-largest cryptocurrency, increased by 0.22% to $1,844.14, garnering a 1.05% gain for the week. Other top 10 non-stablecoin cryptocurrencies also displayed mixed results, with Solana's SOL emerging as a leader with a 3.50% rise to $25.17 and a weekly gain of 9.42%. HBAR, the utility token of Hedera Hashgraph, witnessed a substantial 13.59% surge over 24 hours, driven by its inclusion in the U.S. Federal Reserve's instant payments platform FedNow.
NFT Transactions Reach Yearly High: The NFT market experienced significant activity, with the Forkast 500 NFT index inching up as the NFT market saw its highest weekly transaction total since February 2022. Weekly NFT transactions exceeded 2.80 million, surpassing the $101 million mark in sales. This surge can be attributed to the emergence of affordable collections, which is anticipated to sustain the market's growth.
Cryptocurrency Market Capitalization and NFT Indexes Show Mixed Results: The total crypto market capitalization increased by 0.40% in 24 hours to reach $1.17 trillion, accompanied by a 47.95% rise in trading volume to $28.52 billion. The Forkast 500 NFT index displayed a slight increase of 0.39% in 24 hours, reaching 2,486.89, while the Ethereum and Polygon NFT indexes also posted gains. Meanwhile, Solana and Cardano NFT indexes witnessed a decrease.
Nvidia's Role in Wall Street Rally: U.S. stock futures demonstrated positive movement following Wall Street's rally, notably led by chipmaker Nvidia, which experienced a 7.09% surge in value—the highest daily rise since May. This upswing in Nvidia's performance was underscored by Morgan Stanley's endorsement as its "top pick," reflecting a broader shift in spending toward artificial intelligence (AI).
Economic Data and Monetary Policy Awaited: Amidst the positive market sentiments, investors await the release of U.S. retail sales data and the Federal Reserve's July meeting minutes to gain insight into the U.S. economy's health and potential future monetary policies. China also made news by unexpectedly lowering the rate of its medium-term lending facility (MLF) by 15 basis points to 2.5%, highlighting the nation's efforts to stabilize economic growth.
In conclusion, the cryptocurrency landscape showed a mix of trends, with Bitcoin's incremental rise, NFT transactions reaching a yearly high, Nvidia's prominent role in a Wall Street rally, and market observers awaiting critical economic data releases and monetary policy updates.