Crypto Weekly Wrap: 19th July 2024
Grayscale Launches New Fund for Decentralised Artificial Intelligence
Grayscale, a leading crypto asset manager, has launched the Grayscale Decentralised AI Fund LLC. This fund aims to bolster investment endeavours in the intersection of artificial intelligence (AI) and cryptocurrency. The fund will finance three critical areas: AI services, addressing issues related to centralised AI use, and developing AI-related infrastructure. Decentralised AI projects already included in the fund's basket at launch include Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). NEAR, Filecoin, and Render are the top-weighted assets in the fund. The initiative reflects Grayscale's commitment to embracing disruptive technologies and mitigating risks associated with the proliferation of AI technology.
Ethereum Spot ETF Set to Launch
Ethereum is on the verge of getting its spot Exchange Traded Fund (ETF), with a launch date set for July 23. The Securities and Exchange Commission (SEC) has requested final S-1 applications from applicants, marking a significant milestone for Ethereum. This development follows the SEC's omnibus approval for multiple ETF applicants on May 23, spurring Ethereum's price to spike 7% to $3,416. Analysts predict that Ethereum could reach its previous peak of $4,840, reflecting the bullish sentiment around the approval of spot Bitcoin ETFs. Eight entities, including Grayscale, BlackRock, and Fidelity, await SEC approval, highlighting the growing institutional interest in cryptocurrency ETFs.
Solana Spot ETFs Face Challenges
As Ethereum prepares for its spot ETF launch, attention is shifting to Solana, another major cryptocurrency. Asset managers VanEck and 21Shares have filed for Solana spot ETFs, but analysts remain sceptical about their approval. Solana's classification as a security is another primary concern, especially following the SEC's lawsuits against Binance.US and Coinbase for trading Solana as a security. Additionally, Solana's centralization issues, with a high concentration of token ownership and fewer nodes compared to Ethereum, further complicate its path to ETF approval.
Technical Analysis: Bitcoin (BTC)
Bitcoin (BTC) has shown a remarkable recovery in recent weeks, driven by favourable macroeconomic conditions and reduced selling pressure. Currently trading at approximately $63.739, Bitcoin's price action appears bullish, supported by strong institutional inflows and optimistic market sentiment. The 120-day moving average, a widely used long-term indicator, suggests that Bitcoin may have the momentum to reach $66,000 or even $68,000 in the near term.
Immediate resistance levels are identified at $65,850, $66,830, and $67,830, while support levels are noted at $63,950, $63,015, and $62,420. The Relative Strength Index (RSI) stands at 57.5, indicating positive momentum. The 50-day Exponential Moving Average (EMA) at $63,020 provides significant support, reinforcing the upward trendline near the $64,000 mark. If Bitcoin forms a bullish candle above this trendline, it could trigger a buying trend, further enhancing its bullish outlook. However, a fall below this critical support could shift the sentiment to bearish, necessitating close monitoring of market developments.
Source: TradingView
XRP Price Surge
XRP has seen a remarkable 31% surge in the past 7 days. This surge makes XRP the best-performing major token, even outpacing Bitcoin and the broader market. A bullish triangle pattern has formed on XRP's long-term price charts, suggesting potential for further upward movement. Open interest in XRP-tracked futures has nearly doubled over the past week, indicating trader expectations of increased price volatility. Currently, XRP futures have racked up over $780 million in bets, with over 60% being long positions. This increase in open interest, alongside rising trading volumes, signals strong bullish sentiment for XRP in the coming weeks.
Conclusion
The cryptocurrency market is experiencing significant developments, with Grayscale's launch of a decentralised AI fund, Ethereum's upcoming spot ETF, and the challenges facing Solana's spot ETFs. Bitcoin's technical analysis indicates a bullish trend, with potential for substantial gains driven by favourable market conditions and reduced selling pressure. As the crypto sector evolves, these developments highlight the growing institutional interest and the dynamic nature of the market, offering both opportunities and challenges for investors.
Source: QuantifyCrypto
Source: CoinMarketCap
Source: CoinMarketCap
Source: CoinMarketCap
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