LYKKE
Monday
02 Sep
bullish

☀️ Tropical trading conditions will prevail over Bitcoin over the next 24 hours, indicating clearly bullish market conditions, while a timid sun will shine 🌥 over Ether, Cardano, Ripple’s XRP and Binance Coin, signaling slightly bullish market conditions. No altcoin covered by ATTMO will face bearish trading conditions.

🌧  Over a one-week time horizon, drizzle will linger over Bitcoin, XRP and Litecoin, translating into slightly bearish market conditions. 

🌥 However, Ether and Avalanche will benefit from a timid sun, while Cardano will profit from tropical trading conditions.

The trading signals available at 7:55 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 fell in August, with Bitcoin below $57,700

The cryptocurrency trend was negative over the past month, with Bitcoin now trading below the level reached during the mini crash on Aug 5. Contrary to equities, the price of Bitcoin dropped 8.3 percent in August while that of Ether lost 21 percent. Equities ended the month on a high, with the Dow posting a new record all-time high.

September is historically Bitcoin’s weakest month, 10xResearch notes is in its daily report.

“With the recent macro news proving to have little effect on the crypto market, we believe BTC is likely to remain range-bound within 58k-65k in the short term as the market awaits positive catalysts to break out of this range,” the Singapore-based crypto firm QCP Capital reports.

The price of Bitcoin fell 0.3 percent to $57,692 over the past 24 hours, Trading View’s Bitcoin chart shows.

Large crypto liquidations puts pressure on Bitcoin – Kaiko research

There is a large supply overhang weighing on the price of Bitcoin, Kaiko Research writes. The US, Chinese, UK and Ukrainian governments are some of the large crypto holder that could sell their seized or acquired Bitcoin holdings in the coming months, just as the German government did over the summer. Additionally, the bankrupt crypto exchange Mt. Gox still has roughly $2.7 billion to redistribute to its creditors.

BlackRock’s Bitcoin ETF posts first outflow in four months

The negative sentiment holding its grip on the cryptosphere has impacted the demand for spot Bitcoin exchange-traded funds (ETFs). Last Thursday, BlackRock's $IBIT, the largest of its kind, experienced outflows for the first time in four months.

“This marks only the second outflow for IBIT since its Jan. 11 launch, with the previous one occurring on May 1, coinciding with a local Bitcoin low of $56,000,” CryptoSlate reports. $IBIT’s total assets under management total almost $21 billion.

“Following an initial surge in February, Bitcoin Spot ETF buying shifted from aggressive accumulation to more sporadic purchases. The initial demand was primarily driven by hedge funds arbitraging the funding rate, but as the funding premium collapsed, ETF demand fell to minimal levels,” 10xResearch wrote in its daily report.

“This decrease in market activity could trigger more profit-taking and stop-loss selling, potentially driving prices lower“ the crypto consultancy added.

As for the Ether spot ETFs listed in the US since July 23, they “are trading significantly less volume than the Bitcoin ETFs, well below the ETH/BTC CEX volume & market cap ratios,” Galaxy Research noted.

“Our negative outlook on Ethereum has been well-known for months, as revenues have significantly declined,” 10xResearch said. The price of Ether fell 0.3 percent to $2,460 over the past 24 hours.

First Brazilian spot Solana ETF raised $3 million on its first trading day

Brazil’s first spot Solana ETF, launched by QR Asset, managed to raise almost $3 million on its first trading day on Aug 29. This is roughly one-sixth of what the asset manager garnered on the first day of its Bitcoin ETF listing in 2021.

Separately, “Solana's steep 44% month-over-month revenue decline reflects the waning meme coin hype, with prices also trending downward,” 10xResearch said. The price of Solana dropped 2.1 percent to $129 over the past 24 hours and down 15 percent in August.

Cardano’s Chang hard fork successfully implemented on Sunday

The Chang hard fork was successfully implemented on the Cardano blockchain on Sunday.

“One small step for Cardano; One giant leap for the industry,” the founder of Cardano, Charles Hoskinson, said.

This upgrade sets the stage for a fully decentralized governance model by the end of 2024, as well as improved scalability and security for Cardano. The price of Cardano shed 3.1 percent to $0.33 over the past 24 hours.

Singapore leads Henley & Partners’ crypto adoption index

The island state Singapore ranks first in Henley & Partners’ second crypto adoption index.

“Singapore leads in the deployment of a financial, business, and regulatory environment that fosters crypto adoption due to its supportive banking system, significant investment, comprehensive regulations such as the Payment Services Act, regulatory sandboxes, and alignment with global standards,” Henley & Partners said.

However, the Americas show potential for leadership. The US, which ranks fourth in the index, has seen a surge of interest following the approval of spot Bitcoin ETFs in January, while countries like Panama are positioning themselves as crypto-friendly havens in the region, the consultancy said.

If you have any feedback or tips that you would like to share to improve this report, please send an email to input@lykke.com.

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.