According to a recent report from Copper Research, Bitcoin’s price trajectory has been hindered by a variety of global circumstances, while Ethereum’s constrained supply may trigger a substantial price increase.
The latest edition of Copper Research’s “Opening Bell” report indicates that despite Bitcoin’s (BTC) ability to withstand the German government’s sale of 40,000 coins, the overall market environment has posed significant challenges, erasing the gains achieved since Bitcoin’s all-time high in March.
The report highlights that Bitcoin is experiencing a lack of purchasing activity due to increased market volatility influenced by several global events. These events include the upcoming U.S. election, unrest in the UK, tensions in the Middle East, and changes in the Japanese central bank’s policies.
Initially, market participants took the opportunity to purchase during the dip caused by the German sell-off. However, the report argues that the recent fluctuations in the market have dampened interest in risk assets, leading to minimal buying activity for Bitcoin.
In light of the unexpected supply influx from Germany, the markets appear to show no net gains. Since Bitcoin reached its peak in March, exchange-traded funds (ETFs) have only incorporated 40,000 coins, with current prices remaining within the range observed during the German sell-off, as stated in the report.
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Ethereum’s potential surge by year-end
Ethereum’s (ETH) supply dynamics are also being closely examined, as the adoption of Layer-2 solutions has returned the asset to an inflationary condition since mid-April. Nevertheless, a considerable amount of ETH is being committed to smart contracts.
This restricted supply could potentially diminish the circulating supply and exert upward pressure on prices as the year concludes.
Source: Copper Research
As of August 12, 66% of Ethereum addresses are currently in profit, with ETH trading just above $2,600. This marks an increase from the previous week when only 63% were profitable.
However, this figure is still below the 75% profit rate observed when ETH traded above $3,159 earlier this month, with approximately 3.59 million addresses needing a price increase to between $2,679 and $2,755 to become profitable.
Surge in tokenized assets
The report also highlights that tokenized assets are witnessing extraordinary growth, with blockchains adding over $1 billion in tokenized government products this year.
McKinsey has recently estimated that the market value of tokenized real-world assets could soar to as much as $4 trillion by 2030, driven by elements such as mutual funds and bonds.
BlackRock’s BUIDL product has accounted for more than half of this growth, indicating strong market momentum. Other offerings, including Franklin Templeton’s BENJI 0.6 and Ondo Finance’s USDY and USDG, are also gaining considerable traction.
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