Most major cryptocurrency have enjoyed relative peace and quiet over the past seven days, led by bitcoin. According to crypto data aggregator COIN360, Bitcoin and Ethereum have traded at -0.69% and respectively -4.46% for the week. Binance’s BNB has gained 6.95% in the same time period and Dogecoin is down 8.28%.
At 8.06 AM ET, bitcoin was still at resistance at $33,576 ET, bitcoin still faces resistance at $33,576 but on-chain metrics have become more bullish. shared data from Blockchain Data and Intelligence provider Glassnode that ‘bitcoin exchange accounts have begun to show signs of sustained inflows’. Over the past three weeks, approximately 40,000 BTC (or $1.37 billion) have been withdrawn, reverseing weeks of inflows that occurred during the 50% market crash. These withdrawals indicate that traders are shifting their funds to other wallets and not looking to sell in near future.
There have been some notable altcoins. EOS, the native cryptocurrency on the EOS.IO Blockchain platform, rose nearly 11% over the past few days after the announcement by crypto startup Bullish that it is preparing to go public via a $9B SPAC deal. Bullish, the company behind EOS, received a $100 million capital injection and digital assets from Block.one. After the transaction closes, Bullish’s chairman will be Brendan Blumer, Block.one CEO.
Terra (LUNA) is another altcoin winner for the week. It is a native token of the protocol that issues fiat-pegged stablecoins. This is up 30.86%. After the volatility of May, the token appears to be back on its feet. Terraform Labs, creator of the project, contributed approximately $70 million on July 7 to increase the reserve of Anchor’s savings protocol Anchor. LUNA’s market capitalization has jumped from $300 Million to $3.4 Billon since January.
All eyes will be on the Grayscale Bitcoin Trust’s (16,240) largest release of locked shares (GBTC), which is scheduled for July 17. In total, 40,000 shares are set to be unlocked over the next few weeks.
Trusts are private placements where qualified investors can purchase shares directly from Grayscale. Investors must hold their shares for six month before selling them on secondary markets. Institutions looking to gain exposure to bitcoin quickly saw a lot of interest in GBTC in the late 2020 and early 2021.
There are many opinions on the impact of this event on the market. JPMorgan strategists believe that selling will increase pressure on cryptocurrency. The bank’s analysts wrote that the selling of GBTC shares after the six-month lockup period in June and July had been a headwind for bitcoin. This note was issued earlier in June. “Despite some improvements, our signals remain overall bearish.”
However, analysts at cryptocurrency exchange Kraken disagree. They believe that market structure does not suggest that the unlock will have a significant impact on BTC spot markets, if any, as some claim. It is one of the most anticipated events this week, regardless of whether or not it creates price action.