Market Consolidation

This week Bitcoin has been consolidating around the key $60k region, currently priced at $59,718. Throughout the week, Bitcoin saw swings of 5% in both directions but ended down -0.40%. A decisive breakout from this range is important to signal a shift toward a renewed upward trend.

Ethereum is also consolidating at a key level of $2,500, with the current price at $2,605. Ethereum experienced swings of 4-5% in both directions as well but has returned to be down -1.9% since last week.

Bitcoin Weekly Price Chart

Whales and Smart Money Buying Bitcoin

This chart shows a record breaking surge in new wallets holding over 1,000 BTC. This is driven by increased adoption from institutions, hedge funds, and smart money accumulating Bitcoin. Recent 13F filings, which are quarterly reports required by the SEC for institutional managers with at least $100 million in assets under management. Revealed that 60% of the top 25 U.S. hedge funds have bought Bitcoin ETFs.

Despite recent price volatility, major players remain unfazed. The growing exposure to Bitcoin ETFs by institutional investors underscores their bullish outlook on the asset, reflecting confidence in its long-term potential despite short-term fluctuations.

Franklin Templeton Crypto Index ETF

Giant asset manager Franklin Templeton is expanding its presence in digital assets by launching a new fund that holds top cryptocurrencies. The firm has filed for a new ETF that will provide investors with exposure to a collection of crypto assets, initially focusing on Bitcoin and Ethereum.

With $1.46 trillion in assets under management (AUM), Templeton ranks as the 12th largest asset manager in the U.S. This Crypto Index ETF reflects the growing institutional interest in digital assets and strengthens Templeton’s position in the expanding crypto space, a move that other Wall Street giants are likely to follow.

Templeton’s current Bitcoin ETF holds $384 million, while its Ethereum ETF has amassed $35 million, showing the significant demand their customers have for exposure to crypto. As large asset managers like Templeton enter the crypto market, they bring credibility and confidence, further legitimising cryptocurrencies and signalling broader acceptance in diversified portfolios.

Bitcoin Miner Capitulation

Bitcoin mining is showing signs of recovery after a challenging period. Recently, many miners have faced rising operational costs that exceeded their revenues, leading to what's known as mining capitulation. This was made worse when Bitcoin’s mining difficulty hit an all-time high on August 1st, and the April halving event cut mining rewards in half from 6.25 BTC to 3.125 BTC. As a result, many miners had to sell large amounts of Bitcoin to cover their expenses, putting extra sell pressure on the market.

However, there is good news, the data below shows the mining landscape is beginning to bounce back. The Hash Ribbons indicator which often marks Bitcoins price bottoming, is a key metric. It shows that when the 30-day moving average crosses above the 60-day, it signals miners are returning to more efficient mining and returning to profitability. This reduces the need for miners to sell, historically setting the stage for Bitcoin price recovery.

Bitcoin Price Comparison After Halvings

Historically, Bitcoin’s price has tended to peak near 500 days after each halving. As of now, we are 125 days past the 2024 halving. This chart compares and scales Bitcoin’s historical performance to the 2024 cycle, showing diminishing returns in previous halving years, though the general timelines follow a similar trajectory.

Our current performance may be slightly behind due to Bitcoin reaching all time highs before the halving, a first in its history. Despite this, the chart offers a strong long-term outlook. While crypto investors often focus on short-term movements, this historical perspective provides reassurance that we are on track for a positive future going into the end of year and 2025.

MasterCard Partners with MetaMask

MetaMask, the leading Ethereum crypto wallet, is breaking down the barriers between blockchain and traditional payments. Allowing compatibility to make payments at any restaurant, clothing store, or gas station that accepts Mastercard. MetaMask is bringing crypto into everyday life.

With this new feature, your crypto funds remain self-custodied in your MetaMask until the moment of transaction. At that point, compatible coins such as USDT, USDC, and Wrapped Ethereum (WETH) are instantly converted to fiat currency to complete the purchase.

The MetaMask Card will be initially offered to a limited number of users in the UK, but plans to distribute to a full rollout later this year in the EU, UK and more test regions in the coming months. This functionality is a significant step forward for the crypto ecosystem, as it enables users to easily spend their crypto in everyday situations, making digital assets more practical and attractive for long term holding and use.

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