Rain will fall over Bitcoin, Binance Coin, Ripple’s XRP and Dogecoin in the next 24 hours, signaling bearish market conditions and sell opportunities. However, Ether and Avalanche will see a timid sun shining, signaling slightly bullish market conditions and potential buy opportunities.

Over a one-week time horizon, there will be drizzle lingering over both Bitcoin and Ether, so slightly improved trading conditions – a slightly bearish trend.

The trading signals available at 10:10 CET are the basis for the projections mentioned above. Please check whether ATTMO's signals have changed since then, before making an investment decision.

Cryptocurrencies fall ahead of nervous wait for US inflation data

The cryptocurrency trend was negative over the past 24 hours as investors await the release of key US inflation data later today. Analysts forecast a drop to 3.1 percent in June.

“Our models suggest a period of possible downside surprises in inflation... If Core CPI comes in at 0.1% [month-on-month], this would mark the third consecutive surprise below expectations and positively impact the market. Bitcoin should then rally,” 10xResearch said.

The price of Bitcoin fell 1.9 percent to $57,981 over the past 24 hours, while Ether was unchanged at $3,112, Trading View’s Bitcoin chart shows. The market cap of both cryptocurrencies makes up more than two-thirds of the entire cryptosphere.

Crypto market faces long-term tailwind & short-term headwind - Bitwise

“The crypto market is facing a weird dynamic right now: All the short-term news is bad, and all the long-term news is good. The dichotomy is creating an incredible potential opportunity for long-term investors,” the Chief Investment Officer of Bitwise, Matt Hougan, wrote in his weekly note.

He cites extraordinary inflows into the spot Bitcoin exchange traded funds (ETFs), the Bitcoin halving that took place in April, the pending approval of spot Ether ETFs, upcoming rate cuts by the Federal Reserve and sweeping changes as for Washington’s attitude toward crypto as long-term drivers set to boost the cryptoverse.

However, short-term the crypto markets face headwinds with massive ongoing or pending one-off sales of crypto asset.

“Consider: $8 billion from Mt. Gox, $12 billion from Silk Road, $2 billion from Germany … that’s a lot of Bitcoin. Making matters worse, these sales and distributions began in earnest over the July 4 holiday week, which is typically a low-liquidity time for crypto. This amplified the impact and led to large liquidations in the futures market, further pressuring prices. But remember: These are all one-off sales. They will come to an end,” Hougan underlines.

The German government now holds roughly $1 billion worth of Bitcoin, data from Arkham Intelligence shows. This means half of their initial stake of seized Bitcoin has been divested over the past couple of days.

Crypto lobby steps up campaign in Washington

A roundtable led by the Republican Congressman Ro Khanna was held in Washington DC on Wednesday with both crypto leaders and White House representatives present.

The CEO of the American Blockchain Association, Kristin Smith, shared the following main points to the audience:

-The crypto voter is real

-The crypto advocate is active

-The crypto industry is mature

Separately, the Chamber of Progress (an organization promoting technological innovation) urged the Biden Administration to support a comprehensive crypto currency regulation.

“Support for a crypto-positive digital assets agenda would provide your Administration with a chance to lead on an issue young voters identify with. For the 18 million Americans currently holding or trading in cryptocurrency, passing bipartisan digital asset regulations is front and center this cycle,” Director of Financial Policy of the organization, Kyle Bligen, said in a letter.

Over 50 percent of Gen Z and Millennial voters support a federal policy that encourages digital asset use in the US, he adds.

US Congress delays vote on upholding Biden’s veto of SAB 121

The two houses of the US Congress delayed their vote aimed at revoking President Biden’s veto of their repeal of the Staff Accounting Bulletin (SAB) 121. However, they seem unlikely to reach the required two-third majority,

“House leadership believes it won’t muster necessary majority to override Biden’s veto of H.J. Res. 109 in vote scheduled [and now delayed],” Fox News reporter Eleanor Terrett writes on X.

SAB 121 would require financial institutions and firm offering crypto custody to record their clients’ crypto holdings as liabilities and hold them at fair value on their balance sheet. This has been heavily criticized by the crypto sphere.

Goldman Sachs to launch 3 tokenization projects in 2024

Wall Street giant Goldman Sachs is poised to launch three tokenization projects during the course of the year on increasing client demand, Fortune reports. The Wall Street giant considers creating marketplaces for tokenized real-world assets (RWAs) and focusing on the “fund complex” in the United States and European debt markets.

Less than three months ago, the investment bank reiterated that its cryptocurrencies have no value.

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DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.