Week Ahead: Cryptocurrencies advanced after US inflation came in lower than expected
BTC has risen 17% in July and is up close to 4% in the first two weeks of August as it trades near $25K. Bitcoin has slowed down, making way for altcoins as flows move away from the safe haven BTC. ETH retook the $2K handle near an 8-month high as the currency surged more than 16% in August. Ethereum founder Vitalik Buterin said the Merge will likely happen around September 15, a big tailwind for the biggest altcoin.
Stocks advanced last week with the peak inflation narrative gathering momentum after US CPI came in under expectations triggering a higher risk appetite. The minutes from the Fed’s monetary policy meeting the top risk event next week with most Fed members on board for more rate hikes to reign in higher inflation. The Fed has shifted away from forward guidance towards data dependency with US retail sales data on the radar, to be released Wednesday.
Ripple is said to be interested in buying Celsius assets, although it made no comments on buying the distressed lender outright. The company published a survey that showed 76% of financial institutions plan to use crypto in the next three years with regulation not moving fast enough.
Blackrock launched a spot bitcoin private trust for institutional clients to offer direct exposure to the cryptocurrency after substantial interest in digital assets. Coinbase and Blackrock announced a partnership earlier this month to provide institutional clients with crypto trading and custody services.
Coinbase posted a record $1.1B Q2 loss and missed revenue forecasts. The cryptocurrency exchange noted transactions and trading volume was below estimates.
Revenue rebounded for BTC miners offsetting high operation costs from the lows seen in mid-June, with most public companies seeing their stock rise tracking higher cryptocurrency prices.
In regulatory news, the Australian Securities and Investments Commission reported that 44% of Australians held cryptocurrencies by the end of last year and called for regulation to increase customer protection. Dutch authorities arrested a developer allegedly working for Tornado Cash, triggering a fall of more than 25% of TORN, with the currency recovering some ground over the weekend.