Bitcoin

Bitcoin, Ether dip amid low volatility; Solana gains

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Bitcoin traded flat on Tuesday afternoon in Asia to stay range bound above the US$29,000 support level. Ether dipped, while most other top 10 non-stablecoin cryptocurrencies traded flat to lower, with Solana’s SOL the only one strengthening. The Forkast 500 NFT index moved up after the NFT market saw the largest weekly total transactions since February 2022. Most Asian stock markets dropped after China unexpectedly lowered its interest rate on Tuesday morning and released weaker-than-expected economic data. U.S. stock futures also declined and European bourses traded lower.

Bitcoin, Ether flat; Solana rises 

Bitcoin remained unchanged in the last 24 hours to trade at US$29,380.78 as of 5 p.m. in Hong Kong, and logged a weekly gain of 0.82%, according to CoinMarketCap data. The world’s leading cryptocurrency briefly reached a high of US$29,660.25 early Tuesday morning.

Bitcoin prices are below its 50-day moving average of US$29,887, with its 30-day realized volatility falling to 17%, the lowest since November 2018, which both indicate bearishness in the token, Markus Thielen, head of research & strategy at digital asset service platform Matrixport, said in an emailed note on Tuesday. 

Meanwhile, the “Greed & Fear Index prints 54% for Bitcoin, above the 21-day moving average which signals that a rally could occur imminently,” added Thielen.

Bitcoin’s price has remained largely within at US$29,000-30,600 for the past seven weeks, causing frustration among investors seeking higher rewards. However, low volatility could prove to be a blessing in disguise, said Nigel Green, founder and chief executive officer of financial management group deVere, in an emailed statement.

“This newfound stability attracts institutional investors, who have been historically wary of entering the market due to its extreme price swings,” Green said. 

“This stability is also a boon for businesses and consumers looking for a reliable store of value or medium of exchange,” he added.

Digital asset investment products saw an inflow of US$29 million in the week ending Aug. 11. That followed three consecutive weeks of outflows totalling around US$144 million, according to a Monday report by European alternative asset manager CoinShares. Bitcoin saw an inflow of US$27 million — roughly 93% of the total inflows.

The inflows to digital asset investment products are “likely due to the recent U.S. inflation data, which was slightly below expectations, signifying that a September rate hike is less likely,” CoinShares wrote in the report.

Ether dipped 0.33% to US$1,840.95 but added 0.71% for the past seven days. Other top 10 non-stablecoin cryptocurrencies all traded lower with the exception of Solana’s SOL, which moved up 1.39% to US$24.82 and gained 7.09% for the week.

Synthesis One, an artificial intelligence (AI) data crowdsourcing platform based on the Solana blockchain, launched its new train-to-earn application “Workspace by Synesis” on Monday. 

The app allows users to train AIs as data providers while earning cryptocurrencies as rewards. This process, Synthesis One claims, will result in a “fully traceable and auditable” data supply chain.

Shiba Inu, which has recently replaced Polkadot as the 10th biggest non-stablecoin cryptocurrency by market cap, led the losers, falling 2.89% to US$0.00001028 while logging a weekly jump of 14.51%

The token received a boost from the incoming launch of Shibarium, a layer-2 network built by Shiba Inu developers whose launch date is yet to be unveiled. 

Blockchain analytics platform Lookonchain noted Tuesday that bankrupt crypto lender Voyager Digital had been selling its assets including Shiba Inu, which could weaken the upward trend in the token.

The total crypto market capitalization dipped 0.18% in the past 24 hours to US$1.17 trillion, while trading volume edged up 7.75% to US$26.17 billion.





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