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Bitcoin fell 10.44% from Aug. 11 to Aug. 18 to US$26,324 as of 9:00 p.m. Friday in Hong Kong, according to CoinMarketCap data. The world’s largest cryptocurrency by market capitalization has been trading below US$30,000 since last Wednesday. Ether fell 9.16% over the week to US$1,678.
Bitcoin dipped to US$25,409 on Friday, its lowest price in two months, after Evergrande, a Chinese property developer with over US$340 billion in liabilities, filed for bankruptcy protection in the U.S., as part of its prolonged restructuring agreement with international creditors. Evergrande defaulted on its dollar-denominated debts in 2021.
Adrian Fritz, a senior research associate at 21.co, the parent company of 21Shares, an issuer of crypto exchange-traded products, said that Evergrande’s bankruptcy contributed to Bitcoin’s price fall, along with the usual “summer trading lull.”
“Bitcoin’s first key support level was the 200-day moving average at US$27,200, which it wasn’t able to hold. The next major support level to watch would be around US$25,000,” said Fritz, in an email response to Forkast.
Coinbase, the largest crypto exchange in the U.S., announced on Wednesday that it obtained regulatory approval to offer crypto futures trading services to eligible clients in the country.
The Shiba Inu (SHIB) token launched its layer-2 scaling solution, Shibarium, on the Ethereum blockchain on Thursday, but US$1.7 million worth of ETH was stuck on the Shibarium bridge, according to on-chain intelligence firm PeckShield, leading an over 7% drop in SHIB’s price.
Adding to the negative investor sentiment, Binance announced the shutdown of its crypto payment service, Binance Connect, on Wednesday. Previously known as “Bifinity,” Binance Connect was a fiat-to-crypto payment ramp for the exchange, allowing users to buy cryptocurrencies through Mastercard and Visa.
Binance’s announcement came a day after Europe’s first Spot Bitcoin exchange-traded fund (ETF) was listed on Euronext Amsterdam, nearly two years after it was first approved.
Lucas Kiely, the chief investment officer of digital asset platform Yield App, said that the ETF listing could inspire other European countries to follow suit and pressure the U.S. Securities and Exchange Commission to hasten its approval process for pending ETFs.
“If Europe demonstrates that such products can operate safely within existing regulatory frameworks, it may force the SEC to reevaluate its cautious approach towards cryptocurrency-related investment vehicles,” wrote Kiely, adding that the surging demand may also move Bitcoin prices higher.
However, Jonas Betz, crypto market analyst and founder of consultancy firm Betz Crypto, doesn’t expect the European ETF to significantly boost Bitcoin prices or accelerate the SEC’s decision-making process.
“The SEC will likely maintain its independent pace and judgment, regardless of the actions of its European counterparts,” Betz told Forkast.
Notable Movers: LTC & XRP
Some of the world’s most popular cryptocurrencies were put on the spotlight in the loss column this week.
XRP, the fifth largest cryptocurrency by market capitalization, dropped 20.09% to US$0.505 after the SEC was granted the request to file an interlocutory appeal in its lawsuit against Ripple Labs.
Litecoin, the world’s 15th largest cryptocurrency by market capitalization, fell 21.65% to US$65.12, as part of a broader downward movement in the crypto market. The global crypto market capitalization stood at US$1.06 trillion on Friday at 9:00 p.m. in Hong Kong, down by more than US$100 billion over the past week, CoinMarketCap data shows.
Next Week: Can Bitcoin close the week above US$27,000?
On Tuesday, investors will be anticipating speeches from Federal Reserve Bank of Chicago President Austan Goolsbee and U.S. Federal Open Market Committee Member Michelle W. Bowman.
Despite Bitcoin falling to a two-month low on Thursday, Yield App’s Kiely said that it’s not all doom and gloom.
“With Europe’s first spot Bitcoin ETF now finally approved, if Bitcoin closed the week around US$27,000 it would be well within the range to regain momentum,” Kiely said.
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