In July 20, 2021, Bitcoin's value plummeted below 30K for the third time since May. The bears came rushing out screaming olden folklore of Bitcoin's inevitable crash to 20K. With the markets slumping for a long time, the bears seemed convincing then. But you'd never have guessed what happened next. From Bitcoin's 420th funeral to a trip to the Amazons followed by a flight to London and finally landing in the hands of Alabama senator. We've had one hell of a trip and it's not even over yet.
This post will breakdown some of the catalytic events from the recent market bottom to the current day. Within this time, the cryptocurrency market completed a full turnaround, breaking some recent records on the way as well.
Phase 1 - Playing cat and dog with a tech giant
On the start of the run, July 20, the market hit one of its bottoms at the time. Nothing was happening. Remember, June was about El Salvador and the Great Bitcoin Migration. By late July, cryptos were still suffering from the sell pressure of Chinese crypto-miners who needed funds to move their operations.
June 22 is when we get our first bite of this run with Amazon leading the way. The internet giant posted a job seeking "to develop Amazon's Digital Currency and Blockchain strategy and product roadmap." Bitcoin's value increased to as much as 26% on July 26 until Amazon 'dispelled the rumors'. Still, it was enough to propel the market to reach further heights.
July 29 is an underrated day for this run. It was a slow day for crypto, which closed on, more or less, the same value it opened. The news during this period was dry but two other major headlines were starting to churn. The stage was set for the US Senate hearing on crypto regulations and the Ethereum London Hard fork.
But the biggest winner of July 29 was network hash rates going back up. This meant that miner selling pressure resulting from the China mining ban decreased and the market was back to normal.
Phase 2 - On the gwei up
The next day was highly volatile. At this point, we have this run's first milestone as Bitcoin hit a 10 consecutive green candles. Ethereum, celebrating its 6th year anniversary, went even further. Ether went on to record 13 days of consecutive green candles with the hype for the London update was getting real.
But by August 3, traders who were likely buying the rumor and sell the news ended Ethereum's hot streak. While it may have worked in the short-run, it was a pretty bad decision in hindsight because the next Ether printed a big green candle. And, more importantly, the London hard fork was released as smooth as cutting butter with a hot knife.
Phase 3 - The Attack of the Boomers!
\"I hope it doesn't pass\" by UnfilteredVoice in r/cryptocurrencymemes
On August 5, news came out that the Senate was expected to vote today on the hastily-drafted bipartisan infrastructure bill. Prompting this post that sparked some movement from US crypto enthusiasts. From this point, even with bears lurking crypto would not let down, the market continued to print green in spite of the fear of regulation.
On August 9, the Senate reached a compromise on the Crypto Tax Provision in which "software developers, node operators, and validators would not be required to carry or report transaction information, but brokers would be." But this was denied. The next day, the US Senate passed its $1T bipartisan infrastructure bill to the House of Representatives with the same original provisions in place.
And that brings us to the present day. There hasn't been much news outside of the US Infrastructure Bill issue. Oddly enough, the news since the Senate hearing hasn't been positive either. With one of the largest Defi hack to date and Tether again reporting an attestation report instead of an actual audit—which is what the people want—on their reserves. But hey! Shit happens. News sometimes moves the market and sometimes it doesn't. Sometime bad news can lead to bullish valuations and sometimes it's the opposite.
No one knows where we're going next but we can, at least, look back at what did happen: one of the wildest recovery runs so far! Kudos to you for being here for the show!
tl;dr: Catalytic events for this run include Amazon's rumored adoption, Ethereum's network upgrade, and US crypto regulations. Crypto news was a mix of good and bad but still news regardless; enough to spark one of the most historical rallies in crypto market history.
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