Are we going to the moon?
Earlier this week, the crypto market has shown some improvements, and there has been an excellent uptrend so far in the week. How long can the market keep up with this uptrend movement?
And what can we learn from this to position ahead for the bull season? First of all, while the movement may have been some patterns in the technical analysis, it is worth noting that some events and news have also significantly contributed to the “greens” in the market.
The world’s largest asset manager; BlackRock, which oversees $10 trillion in assets, partners with Coinbase, one of the prominent crypto exchanges in the world, to provide the institutional investors on Aladdin; BlackRock’s portfolio management software, through Coinbase Prime, the access to crypto trading, custody, prime brokerage and reporting proficiency. The deal is currently only limited to Bitcoin (BTC). However, with time, the agreement may extend to other notable cryptocurrencies and projects.
This partnership brings more liquidity into the market. It adds more adoption and reliability to the Bitcoin sphere, a pioneer of other cryptocurrencies.
Also, a pension fund, Virginia’s Fairfax County, are seeing into investing in crypto, and they have gained approval to invest in crypto yield farming and lending. This move brings more market liquidity and provides crypto traders with more funds. This gives institutional investors, asset management companies and others more reasons to look into Bitcoin and the Crypto ecosystem. This move may eventually make the crypto ecosystem a financial standard in many countries.
Furthermore, the recent news of inflation cooling off in the US and the Consumer Price Index (CPI), which was announced to have reduced from the former increase of 9.1% in the previous month; July 2022, to 8.5% in the current month brought some relief to the investors and which calmed down the fear index. Concerning the market reaction to the news, the stock market sourced, and the crypto market followed suit. The crypto market moved from a market cap of $1 trillion as of July 2022 to $1.16 trillion at the time of writing in August 2022.
Finally, Ethereum merges successful, the merge which sees them move from a Proof of Work (PoW) to Proof of Stake (PoS), the merge which is the Goerli test merge, will enable the blockchain to be more energy efficient compared to the POW share energy consumption. With this recent news of the final test merge, the crypto market responded positively, with ether (ETH), a native coin of the Ethereum blockchain leading the uptrend.
However, how long can this keep going, and how long will this news impact the market?
Like any other financial market, the crypto market is affected by technical analysis and fundamental news. Still, the fundamental news and events tend to build a quick reaction to the market, so this news may continue to have an impact until there seems to be another news or events occurring in the market or the ecosystem. As in the case of a Solana hack which caused a $5 million loss, the dispute between the Binance platform and the WazirX exchange. The initial news of CPI increase to 9.1%, which caused a massive drawdown in the crypto market, and stock market inclusive in the past week and the past month.
Development, the news of Ethereum’s goerli test merge, the positive market reaction and the probability of a crypto summer rally. Are we close to the light at the end of the bear market tunnel?
Can we say we are just getting started to the beginning of the bull season market rally? Or is this rally and price upward movement just a fade?
Kindly ensure you share and FOLLOW ME on Medium and Twitter.
Would you love to delve into more details on what a blockchain and a cryptocurrency are?
And many more in my profile. Follow me and subscribe to my email to receive notifications anytime I have published an article. Stay Safe!
New to trading? Try crypto trading bots or copy trading