Main financial assets discussed: Ethereum (ETH-USD)
Top 3 key points:
1. AI can enhance the efficiency of developers and the security of code on Ethereum, leading to more AI-assisted dapp development and increased activity on the network.
2. AI can improve decentralized finance (DeFi) and decentralized trading by enabling automated on-chain strategies and providing insights into smart contract behavior.
3. AI's need for data makes public blockchains like Ethereum attractive, and Ethereum's smart contracts can facilitate interoperability between AI systems.
Recommended actions: **Buy** Ethereum (ETH-USD)
Digital asset investment products experienced $55 million in outflows, primarily due to the lack of movement towards approving a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission, with Bitcoin alone accounting for $42 million of the outflows.
Crypto analyst Benjamin Cowen believes that Ethereum (ETH) needs to drop further before it can reach new all-time highs, as it must first align with its fair-value logarithmic regression trendline, creating an attractive accumulation range between $400 and $600.
Head of Research at FS Insight, Tom Lee, predicts that Bitcoin's network value and scarcity could push its price over $200,000, while other experts, including Ark Invest CEO Cathie Wood, also foresee significant growth for the cryptocurrency. Lee highlights Bitcoin's resilience and regulatory scrutiny as well as interest from traditional financial giants such as BlackRock and Citadel.
Large ether (ETH) investors took advantage of lower prices following a market tumble to accumulate $94 million worth of ETH, while large bitcoin investors added $309 million worth of BTC to their wallets.
A surge in global interest in acquiring Bitcoin has been observed, with Nigeria leading the way, as investors anticipate a potential rally driven by upcoming events in the crypto sphere and the approval possibility of the inaugural spot Bitcoin exchange-traded fund (ETF) by the SEC. Bitcoin's evolving role as a possible store of value is reflected in low exchange-held supplies, while technical analysis suggests a bearish sentiment but a potential reach of $26,500 and the $30,000 milestone.
Ethereum's price has surpassed Bitcoin's in the second half of 2023, as investor sentiment towards Ethereum has improved and Bitcoin dominance has declined, indicating a shift towards altcoins; Ethereum's oversold status and resilient consolidation above $1,500 suggest a potential bullish reversal in the coming days, but a drop below $1,500 is possible if bears gain control.
The 1inch Investment Fund's crypto wallet has purchased $10 million worth of Ether (ETH) after cashing out on previous trades, bringing its total digital asset holdings to $80 million.
A series of Bitcoin Exchange Traded Fund (ETF) applications have been submitted to the SEC, potentially offering investors a more accessible way to invest in cryptocurrency and bridging the gap between traditional finance and digital assets.
The supply of Bitcoin on crypto exchanges is currently at its lowest level in over half a decade, with only 5.8% of the overall supply sitting on exchange platforms, while Bitcoin is also leading in terms of address activity; meanwhile, the 10 largest addresses associated with Ethereum are holding over 35% of ETH's overall supply, likely due to smaller investors selling off their holdings during the recent market dip.
The average trade size of Bitcoin on most exchanges increased significantly following a court ruling that the SEC must review its rejection of Grayscale Investments' attempt to convert the Grayscale Bitcoin Trust into an ETF, suggesting increased activity by large traders. Additionally, Bitcoin's price climbed over 7% as market confidence in a bitcoin spot ETF approval grew.
ARK Invest CEO Cathie Wood predicts that the market capitalization of cryptocurrencies will increase by over 2,100% in less than seven years, driven by institutional investment and the potential approval of a Bitcoin exchange-traded fund (ETF), with the total crypto market cap potentially reaching $25 trillion by 2030.
Hundreds of millions of dollars worth of crypto assets have been liquidated as Bitcoin's price falls below $26,000, with the majority of the liquidations coming from exchanges such as OKX, Binance, and ByBit.
Ethereum's price has been declining, leading to concerns among investors, but there are two factors to consider: a drop in user activity and transaction volume on the Ethereum blockchain, which may be due to users migrating to faster and cheaper Layer 2 blockchains, and selling by Ethereum "whales" and insiders, including co-founder Vitalik Buterin, which could be attributed to profit-taking and security measures rather than a lack of confidence in Ethereum's future prospects. Despite the market's overreaction, Ethereum remains a strong investment with its dominance in various business segments and ongoing development plans.
Approval of a Bitcoin exchange-traded fund (ETF) in the United States could have a severe impact on major cryptocurrency exchanges, with ETFs offering advantages such as lower fees and the handling of digital assets and tax efficiency for consumers, according to Bloomberg analyst Eric Balchunas.
Ether's price has been supported by the Federal Reserve's injection of $300 billion, but doubts are growing about its ability to sustain this level due to bearish sentiment in the cryptocurrency market and declining metrics on the Ethereum network, including a decrease in the number of ETH investors and a decline in activity on decentralized applications. Competitors such as Solana are also benefiting from stablecoin volumes, and there is an increased likelihood of Ether's price dropping below the $1,600 support level.
Bitcoin (BTC) has remained stagnant below $26,000, with investors waiting for further developments in the cryptocurrency market and the wider economy, while Ether (ETH) is expected to outperform BTC in September and October due to the potential approval of the first ether ETF in mid-October. Additionally, SOMA Finance plans to sell tokens that represent a financial interest, addressing the criticism that crypto tokens lack equity or debt claims. Binance continues to dominate the crypto market as the leading exchange.
Fidelity Digital Assets reports that Ethereum is currently trading at a discount, with its projected value to be around $2,090, approximately 28% above the current price, based on network activity and annualized network fees.
Cathie Wood's Ark fund and 21Shares are seeking to establish America's first spot ether ETF, promising a safer way to trade the second-largest cryptocurrency, as the race to launch ETFs backed by bitcoin gains momentum.
Binance has seen the departure of 10 key executives, Nasdaq has received approval to trade AI-based orders, former FTX CEO Sam Bankman-Fried's bail has been denied, and Grayscale has asked the SEC to discuss the conversion of its Bitcoin fund to an ETF; Bitcoin is at $25,871, Ether is at $1,635, and XRP is at $0.50.
A crypto analyst predicts that Ethereum (ETH) could experience a significant crash and drop to the $400-$800 range, potentially causing losses for both bulls and bears in the market.
The market is underestimating the potential impact and value of Spot Bitcoin ETFs, with analysts arguing that approval would lead to significant financial inflows and buying pressure, and that it is a good time to enter the market and start building a crypto portfolio, despite regulatory challenges. Ethereum could also benefit from a futures-based ETF listing, but there is caution about the SEC potentially classifying ETH as a security. Overall, the global crypto adoption is dependent on market maturity, regulatory intervention, and consistent long-term adoption.
Analyst Bluntz predicts that Ethereum (ETH) will continue its bearish price action and potentially drop to $1,440 before rallying, while other trader Benjamin Cowen believes the digital asset could experience a massive freefall, potentially reaching lows below $800.
Crypto analyst Nicholas Merten believes Ethereum is likely to experience a significant price drop, with the possibility of it reaching as low as $300 to $500.
Bitcoin (BTC) surpasses $27,000, while ether (ETH) holds support levels, but interest-rate decisions this week may bring downward pressure; overall market capitalization grows just 0.4% in the past 24 hours.
The introduction of a bitcoin ETF could increase accessibility, liquidity, and institutional adoption, potentially stabilizing prices and attracting capital from mainstream investors, similar to the impact of gold ETFs on the gold market.
Investing in an AI-focused ETF, such as the Global X Artificial Intelligence and Technology ETF, could potentially generate significant returns and make investors millionaires over the long term.
Ether (ETH) has experienced a modest increase in price in 2023, but it is still trading significantly below its peak in November 2021, raising questions among investors about the reasons behind the decline and potential catalysts for a reversal. The ongoing legal battle between Ripple and the SEC, as well as regulatory uncertainties surrounding the Ethereum ICO, remain sources of concern. However, positive surprises such as the request for a spot Ether ETF and Ethereum's position to benefit from Bitcoin-related catalysts give hope to investors.
Deep-pocketed crypto investors have moved over $660 million worth of Bitcoin, Ethereum, and Chainlink as Bitcoin's price drops below $27,000.
The crypto fund management business could see assets of up to $650 billion in five years due to the expected launch of spot-based bitcoin ETFs, according to a research report by broker Bernstein.
Political pressure is causing delays in the approval of a Bitcoin spot ETF, but CEO of BitGo, Mike Belshe, remains optimistic that Bitcoin's price will reach its record high of $69,000 within the next 18 months.
The Washington Post analysis reveals that over 1,000 publicly traded companies mentioned AI in their recent earnings calls, indicating the growing interest and investment in the industry, with ETFs such as the First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT 0.10%) and the Global X Autonomous & Electric Vehicles ETF (DRIV -0.48%) providing a diversified and lower-risk investment approach for those looking to capitalize on the AI boom.
Cryptocurrency markets surged higher, with Bitcoin breaking above $27,000 and Ethereum outperforming Bitcoin due to investor hopes for a potential U.S. regulatory greenlight for a futures-based exchange-traded fund (ETF).
Recent on-chain data reveals that an exploit mover transferred 2,500 ETH valued at $4 million each, potentially impacting ETH's price and smaller investors, coinciding with the launch of Ethereum-based ETFs in the United States.
Bitcoin's price has increased by 60% since the beginning of the year, reaching $26,972, while Ethereum's price has risen by 40% and now trades at $1,672; the approval of VanEck's Ethereum Futures ETF likely contributed to the recent boost in Ethereum's price.
The supply dynamics of Ethereum have been affected by the drop in DeFi, NFT sales, and meme coin trading, with Ethereum being either deflationary or inflationary depending on the time frame. The implementation of EIP-1559 and the transition to proof of stake have also impacted Ethereum's supply and transaction fees, while gas prices have been declining due to scaling solutions and a lack of narrative in the crypto market.
Hedge funds using computer algorithms to trade equities are expected to sell $20 to $30 billion in the next two weeks due to retreating stock markets, potentially exacerbating the decline in shares, according to a note by UBS.
The number of ETFs tied to cryptocurrencies, particularly ether, is expanding rapidly, making it easier for financial professionals to gain exposure to the crypto market, while the launch of ether futures products may indicate optimism for the approval of spot bitcoin products by the SEC.
The launch of nine new Ethereum futures exchange-traded funds (ETFs) saw underwhelming trading volume of less than $2 million on the first day, with none of the products standing out as a clear winner, indicating that investors may prefer spot ETF products over futures.
The recent filing for a spot Ethereum exchange-traded fund (ETF) in the United States by ARK Invest marks a turning point in the integration of digital assets into traditional finance, signaling the dawn of institutional liquid staking and the need for regulatory approval for mainstream adoption.
The price of Ethereum's native token, Ether (ETH), has struggled to surpass $2,000 due to factors such as a bear cycle fractal, a stronger U.S. dollar, underperformance compared to Bitcoin, a decline in Ethereum network activity, and a drop in NFT volumes and unique active wallets.
The demand for Bitcoin as a digital store of value, combined with its potential approval for a US-listed spot ETF, could result in a significant rally and inflows of $20-$30 billion, according to a report by Matrixport.
Cryptocurrency investment products experienced inflows of $78 million for the second consecutive week, with volumes of crypto exchange-traded products reaching $1.1 billion and Bitcoin volumes rising by 16%, according to CoinShares.
Inflows to digital asset investment funds reached $78 million, with Bitcoin investment funds receiving the highest proportion at $43 million, while Bitcoin trading volumes increased by 16% in the past week. Additionally, the launch of the Ethereum futures ETF in the US saw under $10 million in investments during the first week, indicating muted investor interest. Deribit, a crypto options exchange, plans to offer options tied to alternative cryptocurrencies XRP, SOL, and MATIC, and FTX founder Sam Bankman-Fried's defense against US Department of Justice charges may be prohibited from mentioning Anthropic's recent fundraising efforts.
The ongoing Hamas-Israel conflict and a significant ether (ETH) sale by the Ethereum Foundation led to a 2% slide in the crypto markets, with over $100 million in futures positions evaporating, although bitcoin remained relatively stable.
Investment into the cryptocurrency market surged with $78 million flowing into the sector, primarily benefiting Bitcoin, while Ethereum ETFs received minimal interest and Solana experienced a substantial increase in inflows.
