Bitcoin, Ethereum and Altcoin market interest rates have yet to return to second quarter 2021 levels: report
The cryptocurrency markets have rallied and rebounded from the YTD lows, which should help renew hopes for another bull market. However, historical crypto price analysis suggests that the digital asset market may be “taking a break due,” according to a report octopus.
In Kraken’s previous report “Game On” is that Kraken intelligence The team had investigated how much the cryptocurrency recovered in August and whether the dynamics could possibly carry over into September – “or what is, on average, the month with the worst performance for Bitcoin”.
As stated in the report:
“Bitcoin had a pivotal August when it recaptured the 200-day moving average and its bull market support band.”
Ethereum also made progress after the London hard fork. The system-wide network update focused on stabilizing charges, “in part by burning ether with every block produced”. The upgrades “caught the attention of market participants hence the + 35% return last month,” noted the Kraken team in their report.
The report added that the demand for and uptake for NFT was “particularly strong”. Over 350 CryptoPunks were reportedly sold for nearly $ 150 million in a single day, the sale of which “could possibly be due to Visa announcing its own”. KryptoPunk buy, ”added the report.
The report also mentions:
“Not only that, NBA superstar Steph Curry bought an ETH-based Bored Ape Yacht Club NFT for $ 180,000 and an NFT platform Open sea saw another parabolic surge in user activity as it ended the month around $ 300 million daily with 40,000 users. “
Kraken’s report also mentioned that it was a great month for many altcoins, but they claim it is “unclear what to expect in September and in the months ahead”.
For example, September is the “worst and least fluctuating month on record for BTC,” the report said.
But when we examine BTC’s open interest along with “weekly inflows to digital asset funds, Google Trends data and subreddit subscriber data” we can see that “overall market interest is still not back to second quarter levels despite the recent market rally Returned in 2021 ”. “The report confirmed.
The report continued:
“But with BTC trading back above its bull market support band and a gold cross on the horizon, BTC could drive the market higher by invalidating a historically negative month. Although BTC has dictated the macro trend in the past and remains the safe haven of the broader crypto market, September could consist of select altcoins breaking away from BTC amid neutral / positive price movements.
In the past few months, various altcoins have “stolen both market share and mind share from digital gold,” the report said. For example, Ethereum was “a focus for many in August as the protocol burned 155,000 ETH ($ 549 million) in August, enabling unprecedented NFT demand.”
You can view Kraken’s full report here.