Since May, when the bears took over the market, cryptocurrencies have lost much of their value. After reaching a market capitalization of cryptocurrencies of more than $ 2 trillion in April, it is now around $ 1.3 trillion. Already in August, however, three major events await us, which have the potential to shake the entire crypto market.
We all see that BTC in particular, the largest cryptocurrency by market capitalization, lost a significant portion of its value when it wrote off more than 50% from its ATH. BTC lost many investors who were in long positions in the futures market. The data suggests that more recently, when BTC fell to more than $ 2,000 in a single day, more than more than $ 200 million was liquidated in futures positions. The market needs a turnaround to regain lost territory.
August will be very important
Cryptocurrency market participants are hoping for another month, when many expect them to make the much-anticipated turnaround. In addition, several events await us in August that support these speculations.
One of the most anticipated events is the latest upgrade of the ETH network – London. The update, which includes the still controversial EIP-1559, has been scheduled to fully impact the mainnet next month. Although it was announced that the final launch date would be decided at a major developer meeting on July 9, one of the network’s core developers, Tim Beiko, suggested that the update be launched on August 2. It is expected that as a result of the deployment of this update, the price of ETH will go north.
In addition, the Securities and Exchange Commission (SEC) also recently announced that it will publish its final decision regarding the SkyBridge BTC ETF, backed by well-known trader Anthony Scarammucci. In its statement, the SEC states that extending the period gives them more time and a chance to consider critical aspects of the ETF and properly assess the risks and benefits. If approved by the ETF, it will be the first US cryptocurrency fund traded on the stock exchange, which should cause an influx of new money.
On the other hand, it turns out that July brings expectations of further difficulties for the cryptocurrency market, as the company Grayscale Investment announcedthat there is a release of shares in their BTC Trust (GBTC), where the six-month lockout period ends. The fund, which is often used as a cryptocurrency investment tool by many companies and individuals, currently boasts more than $ 20 billion worth of BTC. While a JPMorgan spokesman predicts that this could send the price of BTC to around $ 25,000, many hope that it will not happen.
August will be extremely important, as there is an expectation that greater stability will return to the market, as no other similar major events are planned for the near future after the Grayscale Trust is unlocked, which could affect the cryptocurrency market to a similar extent. In principle, August could attract many more new investors.