TL;DR

Markets:

• 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

Airdrops:

• $WIZM

• $CLOUT

• $SCROLL

• $FREN

News:

• China Rate Cuts Cause Market Instability

• Ferrari Expands Bitcoin & Crypto Payments to Europe

• Ethereum ETFs Launch Amid Market Uncertainty

• Ethereum ETF Launch Triggers Sell-Off, Signals Market Shift

• USDY Launches on Cosmos via Noble

• Cosmos (ATOM) Down 56% Despite Advances

• Crypto Reacts to Biden’s Withdrawal

• Mark Cuban: Kamala Harris More Crypto-Friendly Than Biden

And much more!

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.

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:

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