Bitcoin Stagnates Amid Global Events, Ethereum's Limited Supply Could Lead to Price Surge

The latest issue of Copper Research’s “Opening Bell” report highlights that despite Bitcoin’s (BTC) resilience against the German government’s sale

A recent Copper Research report highlights that Bitcoin’s (BTC) price movement has been largely impacted by global events, while Ethereum’s (ETH) limited supply could lead to a price surge by year-end.

According to the report, Bitcoin has experienced limited buying activity due to heightened market volatility driven by a series of global events. These include the U.S. election, UK riots, Middle East tensions, and shifts in Japanese central bank policy.

Initially, market participants bought the dip during the German sell-off. However, the report notes that recent market volatility has reduced interest in risk assets, leading to minimal buying activity for Bitcoin.

Considering the unexpected supply from Germany, the markets have effectively shown no net additions. Since Bitcoin’s peak in March, ETFs have only added 40,000 coins, and prices are currently trading within the same range observed during the German sell-off.

Meanwhile, Ethereum’s supply dynamics are also being closely monitored. Following Layer-2 adoption, ETH became inflationary again in mid-April. However, a significant portion of ETH is being locked into smart contracts.

This limited supply could potentially reduce the circulating supply and create upward price pressure by the year-end.

As of Aug. 12, 66% of Ethereum addresses are in profit, with ETH trading just above $2,600. This marks an increase from last week when only 63% were profitable.

However, this is still lower than the 75% in profit when ETH was above $3,159 earlier in the month, with 3.59 million addresses needing a price rise to between $2,679 and $2,755 to turn profitable.

The report also highlights the surging interest in tokenized assets, with blockchains adding over $1 billion in tokenized government products this year.

According to McKinsey, the market value of tokenized real-world assets could reach up to $4 trillion by 2030, driven by factors like mutual funds and bonds.

BlackRock’s BUIDL product has contributed to over half of this increase, indicating strong market momentum. Other products, including Franklin Templeton’s BENJI 0.6 and Ondo Finance’s USDY and USDG, are also gaining significant traction.

The above is the detailed content of Bitcoin Stagnates Amid Global Events, Ethereum's Limited Supply Could Lead to Price Surge. For more information, please follow other related articles on the PHP Chinese website!