Rollbit's weekly analysis and review of the news in Bitcoin, Ethereum and cryptocurrency markets.
Fidelity Digital Assets Survey: "90% of Institutional Investors will Invest in Cryptocurrency by 2026"
According to a survey from Fidelity Digital Assets, seven out of 10 institutional investors plan to invest in cryptoassets in the near future, and 90% plan on doing so by 2026. Over half of the 1,100 institutional investors surveyed said they had investments in cryptocurrencies between December 2020 and April 2021.
The survey also found that price volatility is a major barrier for new entrants, as well as the lack of fundamentals needed to assess the value of blockchain networks and concerns around market manipulation.
The European Commission put forward four legislative proposals on July 21st, including the creation of a new body to transform anti-money laundering and supervise counter-terrorism financing, as well as the introduction of a EU-wide limit of €10,000 for cash transactions.
The proposed rules also restrict third-parties, such as cryptocurrency custodians or exchanges, from offering anonymous services.
JP Morgan Becomes the First Big Investment Bank to Allow Access to Crypto Funds for Retail Wealth Clients
JP Morgan became the first big investment bank to give the green light to invest in five different cryptocurrency funds for its retail wealth clients.
Effective from July 19th, the crypto funds that retail wealth clients can now invest in are Grayscale's Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, and Ethereum Classic Trust, and Osprey Fund's Bitcoin Trust.
The news follows on from wider institutional adoption this week such as the Bank of America, which approved the trading of Bitcoin futures for some of its clients according to a report published on July 16th.
On July 20th, the CEO of the Maker Foundation Rune Chistensen announced that the bootstrapping responsibilities of the Foundation had been achieved. The responsibilities of the Foundation will be handed over to the decentralised autonomous organisation, the MakerDAO.
The Maker Foundation will as a result shut down within the next few months. Maker, a DeFi protocol based on Ethereum was created in 2015 and the Foundation existed temporarily to further the development of the protocol.
Cryptocurrency investment firm Grayscale launched a new DeFi fund according to an announcement on July 19th in partnership with CoinDesk Indexes to allow investors direct exposure to DeFi without having to buy the assets directly.
The fund will feature 10 different cryptocurrencies in a market-capitalisation weighted portfolio including Uniswap (UNI), Aave (AAVE), Compound (COMP), Curve (CRV), MakerDAO (MKR), SushiSwap (SUSHI), Synthetix (SNX), Yearn Finance (YFI), UMA Protocol (UMA) and Bancor Network Token (BNT).
The English Premier League football team Arsenal FC announced a partnership with Chiliz to introduce a fan token. Chiliz already has numerous deals in place and launched fan tokens for some of the biggest European clubs, such as Atlético Madrid, Barcelona FC and Juventus FC.
Data from CoinGecko shows that Chiliz (CHZ) has the third largest market capitalisation out of all NFT-related coins, currently over $1.2 billion.
The $AFC fan token will soon become available on the Socios.com app. Fans that hold that token will enjoy benefits such as access to once-in-a-lifetime experiences, exclusive content, games and competitions.
- A decision from the SEC is due next week on July 27th for Kryptoin's Bitcoin ETF filing,
- In conversation with Square's Jack Dorsey and ARK Invest's Cathie Wood at The B Word conference on July 21st, Elon Musk revealed that SpaceX owns Bitcoin and is not selling. The SpaceX CEO also said he personally owns more Bitcoin than Ethereum and Dogecoin, adding that these three cryptocurrencies are the only significant holdings he has apart from Tesla stock.
- ARK Invest added a total of 450,000 shares of Grayscale's Bitcoin Trust to their holdings this week.
- DeFi project Aave said they are building a 'decentralised Twitter' on Ethereum while Vitalik Buterin delivered a speech on July 21st at Ethereum Community Conference 4 to talk about decentralised social networks (see below):
Market Analysis 📈📉
7-day Price Change
Data as of July 23rd, 15:30 UTC
Let's take a look at the Bitcoin chart.
In the first half of the week, Bitcoin tested the $30,000 level for the ninth time since moving above this level, reaching lows of $29,300. However, buying pressure intensified below $30,000 on July 21st and the price rebounded to reach highs of $32,800. The price is currently trading around the $32,100 level, with $32,800 now providing immediate resistance and a break above this price should open up attempts at $33,000 and $34,000. Immediate support lies near $31,850 and $31,500.
On the close of July 21st's candle, Bitcoin printed a Bullish Engulfing pattern and reversed the losses since July 16th in a single day, which could signal a move higher over the next few days for the cryptocurrency market. The price of Bitcoin is faltering at the time of writing, retreating from the highs of the Bullish Engulfing pattern and we'd want to see Bitcoin solidify gains above July 21st's high ($32,815) for a greater probability of a bullish move.
The price has tested the middle Bollinger band on Bitcoin's daily chart, which lies around $32,720 and provided a good level to sell Bitcoin during late June-July. A daily closing price above the middle band (currently at $32,720) should see the price trend towards the upper Bollinger band (currently at $35,286).
Have a great weekend!
-The Rollbit Team