We like the signs in the market - Crypto Investor's Weekly 01/08-05/08

Crypto markets are flashing some optimistic signs, which should give us all hopes for a break of the crypto winter.

Hello crypto investors,

?Hopefully you’ve all had a fantastic week. We’re happy to report that the crypto markets seem to be settling in at a higher range. The crypto winter may not be over, but it does appear that they may have found a floor, and are now in the process of climbing higher from that floor.?

In the meantime, government agencies are hard at work deciding how to handle cryptocurrencies. The EU has recently agreed on a regulatory framework in the passage of the Markets in Crypto-Assets (MiCA) law and more recently The Basel Committee on Banking Supervision took aim at reducing the impact of cryptocurrencies on the environment with the release of a consultative document on climate-related financial risks.

While these regulatory changes have upset some of the early crypto-adopters, we believe that the addition of a regulatory framework is necessary if cryptocurrencies are to move into the mainstream. Our CEO Olga Feldmeier has long been a proponent of increased regulation in the crypto space, citing many of the benefits such as guarantees of safety, transparency, segregation of customer funds, and more.

In short, things do seem to be improving in the crypto markets, albeit more slowly than many of us might like. Still, improvement is progress, and that’s an optimistic sign. Until next week then, keep that optimism in the long-term prospects for the cryptocurrency space.

Who’s Buying Crypto? Tweets from Crypto’s Biggest Investors

Bear markets are for builders and long-term investors. We rounded up tweets from five recognized crypto experts – including Michael Saylor of MicroStrategy, Barry Silbert of Digital Currency Group, and Dan Morehead of Pantera Capital – who are still bullish on bitcoin. This is a great opportunity to learn how the experts think about building long-term wealth during challenging times.

Full article in English and German

Image via Glassnode

Expanding a bit on our Lightning Network primer, this chart shows the clear growth of the Lightning Network public capacity. That capacity has reached an all-time high of 4,405 BTC for a 19% increase over the past two months. The metric measures available liquidity in the public channels of the Lightning Network i.e. how much BTC can be sent through nodes with public channels. The reason we like to see this growth is because it’s considered to be a good gauge of adoption and expanding network effects.

Obviously making Bitcoin more accessible and easier to use is going to be a long-term positive for the strength of the network and for the strength of Bitcoin’s price. To see this type of growth during a bear market downturn is encouraging as it shows users are still willing to adopt Bitcoin as a viable currency, which highlights their understanding of Bitcoin as a? useful currency worth purchasing, holding, and using.

Markets Weekly Range (through Aug. 4, 2022)

Bitcoin - Min (USD): $22’710 / Max (USD): $24’573

Ethereum - Min (USD): $1’568 / Max (USD): $1’775

VALOR - Min (USD): $0.2434 / Max (USD): $0.3808

PAX Gold - Min (USD): $1’747 / Max (USD): $1’785

Summary of Markets Weekly Range: There’s an oft repeated adage that claims markets climb a wall of worry. Traders do have plenty to worry about currently, from inflation to ultra-aggressive central bank policy to recessionary pressures. And that may be why we’re seeing the crypto market making overall gains on a week to week basis recently. Over the past several weeks we can see a trend of higher lows and higher highs, which is always a good sign for investors. Price ranges for major cryptocurrencies are remaining fairly close together, but also rising consistently. This combination of consistent gains and tight ranges in coins is a good scenario for the market as investors look for a catalyst to spark a new rally.

Image via Twitter

New to crypto? Twitter gives some insight into the questions you’ll want to ask as you dive into this fascinating financial market:

Why invest in crypto? - It’s a rapidly growing financial market and you can still be among the first to unlock its benefits.

What is your risk tolerance? - Not all crypto is as volatile as in the past. If you want to minimize risk you could start your crypto investing journey with Bitcoin. Or hold some stablecoins and invest for yield.

Where do you plan to buy your cryptocurrency? - Thousands of our customers have chosen SMART VALOR for regulatory and technical security and ease of use.

Which cryptocurrencies will you invest in? - Start with the Big 2, Bitcoin and Ethereum, then begin to explore top quality altcoins to diversify.

After asking yourself these four questions you very likely have a better idea of how you’d like to approach cryptocurrencies.

Top 5 News Section

BlackRock Partners with Coinbase for Crypto Services

The world’s largest asset manager announced that it will partner with Coinbase to offer its institutional clients trading and custody services for crypto assets. The move is significant: it shows institutions are still investing in crypto for the long term. It also shows that large asset managers are choosing to partner with crypto companies with both technical expertise and deep liquidity, rather than building out their own crypto technology in-house.

Full article in Wall Street Journal

Basel Committee on Banking Supervision Consultative Document

The Basel Committee on Banking Supervision recently issued a public consultation on principles for the effective management and supervision of climate-related financial risks. This follows the publication of a series of analytical reports earlier this year. The Committee is taking a holistic approach to addressing climate-related financial risks to the global banking system. This includes the assessment and consideration of disclosure, supervisory and regulatory measures.

See full document here

Big Traders Remain Super Bullish on Bitcoin Despite Crypto Carnage

Bitcoin (BTC) remains way below its highs, and reasons for optimism seem scarce. But not for some of the biggest traders, who’ve retained a rosy view. Cumberland, a Chicago-based market-making firm that buys and sells with institutions and other firms that do big transactions, recently surveyed its clients and found optimism abounds.

Full article on CoinDesk

Ethereum (ETH) TVL Spiked More Than $10 Billion in July

Ethereum total value locked (TVL) increased significantly in July due to a recovering market that saw investors pour more liquidity into decentralized finance (DeFi). Ethereum was one of the best-performing blockchain projects in the last month. According to Be[In]Crypto research, Ethereum gained 24% in total value locked in the seventh month of 2022.

Full article on BeInCrypto

How Summer Is Turning Into A Short-Lived Altcoin Season

Altcoin season is a phenomenon that excites investors in the crypto market. It often means a period of multiple gains as the altcoins see their valuations and prices grow rapidly. This usually comes after a bull run in the price of bitcoin, which is now the case with the current market. With summer coming into full bloom, altcoins seem to be having the time of their lives as performance has been outstanding all around.

Full article on Bitcoinist

Have a nice weekend and catch you next time