Agencies-Gaza post
Bitcoin, Ethereum still fly despite calm August dip
After ruling the market to rally over the past month, Bitcoin (BTC) and Ethereum (ETH) have encountered mild price dips, with investors keen on the cryptos’ next price movement. However, despite the deceleration in momentum, crypto traders are communicating bullishness in the two large-cap assets.
Especially, Bitcoin was trading at $22,927 and registered a weighted view of 0.25 while Ethereum, with a value of $1,587, registered a weighted sentiment of 0.32, data presented on August 2 by crypto analytics platform Santiment points.
The data has occurred after both assets registered an impressive July, surging by an average of 18%. Based on the market sentiment, it can be interpreted that Bitcoin and Ethereum have not experienced fear, uncertainty, and doubt, with investors opting to buy in the drop.
Notably, Ethereum’s bullishness has occurred amid the latest update on the Merge promotion that will see the blockchain change from the Proof-of-Work (PoW) protocol to Proof-of-Stake (PoS). The update is viewed as bullish for the second-ranked crypto.
In public, since the update, the Ethereum network development reached many milestones. As noted by Finbold, Ethereum’s open interest flipped Bitcoin’s for the first time ever on August 1.
Interestingly, the high gas fees on the Ethereum web have been an effective pain point for users on the platform. However, the most delinquent data by crypto analysis platform Glassnode shows that Ethereum Gas slipped to 17.5 Gwei, the lowest level since May 2020, while the asset’s burning rate of EIP1559 has hit an all-time low.
Elsewhere, Bitcoin rallied in July after the Federal Reserve raised its interest rate by 75 basis points. Bitcoin is considered to have reacted well to the Fed’s latest policy since the asset has been trading in a high inflationary environment.
With the possibility of rising rates in the future, it seems investors are betting on the asset to continue rallying.
