TL;DR

• BTC is down & ETH is down

• BTC over-performed ETH this week 

• Bitcoin dominance is up

• The hot coin we look at this week is $SOL

Latest & Greatest 📰

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BTC & ETH Market Update 📈

Crypto is down this week, with BTC being down 1.1% and ETH down 8.4%:

Bitcoin dominance has increased over the week, rising from 51.7% to a peak of 52.65% and ending at 52.6%. Bitcoin is up due to strong bullish momentum, significant short position liquidations, successful breakouts above key levels, positive market sentiment, and ongoing institutional interest.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

The cryptocurrency market dropped over 3.5% today due to a risk-off sentiment following a sell-off in U.S. equities, significant Ethereum ETF outflows, and $330 million in liquidations from leveraged long positions.

Ethereum (ETHUSD) Analysis:

Ethereum (ETHUSD) experienced a significant decline of over 8%, driven by a "sell-the-news" reaction following the launch of eight spot Ether ETFs, which saw $113.3 million in outflows, primarily from Grayscale’s Ethereum Trust (ETHE). Additional downward pressure came from ongoing Bitcoin reimbursements to Mt. Gox creditors and a sharp selloff in megacap tech stocks, which negatively affected overall market sentiment.

Bitcoin (BTCUSD) Analysis:

Bitcoin (BTCUSD) has faced a 6% correction over the past three days, driven by robust U.S. macroeconomic data, concerns over an artificial intelligence investment bubble, and ongoing legal issues with Bitfinex and Tether. The U.S. economy's 2.8% annualized growth rate and declining jobless claims have reduced Bitcoin's appeal as an inflation hedge. Concurrently, a selloff in AI-related tech stocks has spread risk-off sentiment across markets, negatively impacting Bitcoin.

Expected Trading Ranges:

• Ethereum (ETH): between $3,000 to $3,200

• Bitcoin (BTC): between $63,000 to $68,000

Market Outlook:

The cryptocurrency market is currently facing downward pressure due to a risk-off sentiment triggered by a sell-off in U.S. equities, significant ETF outflows, and substantial leveraged long liquidations. The market is expected to remain volatile in the short term, with Bitcoin and Ethereum trading within established ranges of $63,000 to $68,000 and $3,000 to $3,200, respectively. Medium-term prospects depend on macroeconomic factors and Federal Reserve policies, while the long-term outlook remains positive driven by institutional interest and technological advancements.

BTC/ETH ratio has seen a increase:

Over the last six days, the BTC to ETH rate has increased. Starting from 19.07 ETH per BTC on July 20, the rate climbed to 20.74 ETH per BTC by July 25, reflecting a rise of approximately 8.7%. This upward trend indicates that Bitcoin has gained strength against Ethereum during this period, with the rate increasing consistently, except for a slight dip on July 23.

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Hot Coin: SOL 🔥

In this week’s newsletter, we dive into Solana’s token with the ticker: $SOL.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

Solana is a Layer 1 blockchain known for its rapid transaction speeds and low costs, making it a prime platform for developing decentralized applications (dApps) and decentralized finance (DeFi) projects.

Solana's innovative approach to blockchain technology enables it to achieve scalability without relying on traditional Layer 2 solutions.

Solana's unique blend of Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus mechanisms allows it to process transactions quickly while maintaining security and decentralization.

This dual-consensus approach helps address the blockchain trilemma, balancing scalability, security, and decentralization effectively.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

• High Throughput

• Low Transaction Costs

• Scalability Without Layer 2 Solutions

• Addressing User Experience (UX) Pain Points

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