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After the turbulence in the first half of 2022, the cryptocurrency market is attempting to sustain the recent short-term gains recorded in July.
Notably, the sector is witnessing capital inflow that has hit a new monthly high led by high market cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
As of August 8, the global crypto market capitalization surged to a 1-month high of $1.13 trillion, adding about $18 billion from the $0.95 trillion recorded on July 8, according to CoinMarketCap data.
Overall major cryptocurrencies turned green after appearing to falter at the start of August. For instance, by press time, flagship cryptocurrency Bitcoin was once again trading slightly above $24,000 after gaining almost 3% in seven days.
Furthermore, second-ranked Ethereum is also on a bullish streak as the community prepares for the Merge upgrade that will transition the blockchain to a Proof-of-Stake (PoS) protocol. By press time, the asset was valued at $1,743, gaining over 3% in a week.
Bitcoin seems to be holding support above $23,000 after the position appeared to be threatened with the risk of correcting below $20,000.
It is worth mentioning that Bitcoin dropped below $23,000 early Friday before the U.S. Labor Department report. The figures indicated that the U.S. recorded a growth in new jobs, dismissing fears that the economy was slowing further.
An extended slowdown would have triggered the Federal Reserve to implement a steep interest rate hike that might plunge the economy into a recession. The over 500,000 added jobs highlighted the economy’s resilience despite the skyrocketing inflation.
Despite the lingering hard economic times, the market has also recorded a resurgence in the number of institutions taking a stake in the crypto sector. For instance, Asset manager Brevan Howard finalised the largest crypto hedge fund launch involving over $1 billion in assets under management.
Elsewhere, BlackRock (NYSE: BLK) partnered with crypto exchange Coinbase to facilitate institutional cryptocurrency investments.
Overall, the past week has been a mix of good and bad news for the cryptocurrency market. For instance, the market has recorded capital inflows despite the high profile hack of the Solana (SOL) network wallet, resulting in over $4 million loss.
However, the crypto industry received some relief after preliminary evidence indicated that the hack might not be Solana’s fault. The root cause of the exploit was identified as compromised private keys.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.
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DISCLAIMER WARNING: The content on this site should not be considered investment advice. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site.
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