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Crypto Market Forecast: Week of August 23rd 2021

A curated weekly summary of forward-focused crypto news that matters. This week, the price of Bitcoin crosses the US$50,000 level, Coinbase plans to add more crypto to its balance sheet, and Cardano establishes its position as the third-largest asset in crypto.

It was a mixed week of trading in the crypto markets with Bitcoin (BTC) and a number of altcoins enjoying healthy gains, while other digital assets lagged behind the pack. Bitcoin ended the week up a steady ~6%. Ethereum (ETH), the second-largest asset on the Brave New Coin market cap table, ended the week up ~2%. Cardano (ADA), the third-largest asset on the market cap table, rose an impressive ~30% this week, achieving a new all-time-high on Sunday. Bitcoin’s gains were bolstered by bullish tailwinds generated by renewed institutional interest.

On Thursday, executives at America’s largest crypto exchange, Coinbase, announced that the company had received board approval to purchase over US$500 million in crypto to add to its balance sheet. The company said it will invest 10% of all company profits into crypto going forward. In a blog post announcing the move, Coinbase revealed a trailblazing new investment strategy. It will become the first publicly traded company to hold Ethereum, Proof of Stake assets, DeFi tokens, and many other crypto assets supported for trading on its platform, in addition to Bitcoin, on its balance sheet.

On top of purchasing volatile assets, Coinbase will also look to put funds aside to secure its position in the industry. On Wednesday the company announced that it had built up a stockpile of US$4 billion in cash, benefitting from the recent growth in crypto trading. The war chest will see the company in a stronger position to weather tighter crypto regulations in the United States, and the possibility of a market downturn.

Chief Financial Officer of Coinbase, Alessia Hass, told the Wall Street Journal that the company is stress-testing its balance sheet to ensure it has adequate funds on hand to prepare for a stricter regulatory regime, possible cyberattacks or a decline in trading revenue.

On Thursday, regulatory documents revealed that Wells Fargo is partnering with NYDIG and FS Investments to launch a new Bitcoin fund. Wells Fargo will receive a share of sales revenue made by its subsidiaries. On the same day, filings also revealed that JP Morgan would be partnering with NYDIG to launch its own crypto fund.

In May 2021, when it was revealed that JP Morgan was reportedly offering its HNW clients exposure to cryptocurrencies, many observers were surprised. The investment bank’s CEO Jamie Dimon has been a prominent critic of Bitcoin. During Bitcoin’s meteoric price rise in 2017, Dimon was less than flattering when discussing Bitcoin to investors. “If you’re stupid enough to buy it, you’ll pay the price for it one day,” he exclaimed to a conference of bankers four years ago.

Discussing JP Morgan’s new Crypto-forward policy in May 2021, Dimon spoke at The Wall Street Journal CEO Council summit. “I’m not a bitcoin supporter, I don’t care about bitcoin. I have no interest in it,” he said.

“On the other hand, clients are interested, and I don’t tell clients what to do,” he continued. This suggests market demand is driving institutions towards offering Bitcoin and cryptocurrency investment products.

Trading set-ups for the week

Pro trader Josh Olszewicz explores trading options and signals for BTC and ETH – and lays out the trading setups he’s watching for the upcoming week. Start your week off right with Josh’s thoughts on trading strategies on a weekly basis.

Bitcoin, ALTs and Ethereum – Trading setup for the week of the 23rd of August 2021

Crypto news for the week ahead

August 24th – BUSTA IDO on Cyberfi

BUSTA, a gaming platform built on the Binance Smart Chain, is set to launch its native BUST token for sale between 24th August 14.00 UTC — 26th August 14.00 UTC. The sale will initially launch on the Samurai token launch platform before tokens are generated on the 31st August. A US$3.75 million allocation will be offered to the Samurai community. The explosive recent growth of Axie Infinity in particular, has put the spotlight on the blockchain sector.

August 27th – Jackson Hole Symposium

Market participants globally are focused on the annual meeting of Federal Reserve policymakers that is set to occur online this year from Thursday to Saturday. Investors are waiting with baited breath to find out whether officials will reveal plans to begin tapering down their purchases of Treasury and mortgage securities to manage rising inflation. Doing this would slow down money printing and be a step towards normalizing a pandemic affected US economy.

Top 10 Crypto Summary

Marcap 10 2308

The performance of large-cap assets was mixed in the last week, with XRP (XRP) and Dogecoin (DOGE) having a poor week. ADA, however, is now the clear third-largest asset in crypto. The asset enjoyed another week of double-digit gains with investor sentiment boosted as the platform blockchain prepares to implement smart contracts on October 1st and boost its functionality. Part of the hard fork will include the launch of Cardano’s first stablecoin, DJed.

Bitcoin Price Chart

BLX 7 day 2308

A strong end to the week saw Bitcoin (BTC) pushing past the US$50,000 price level. Glassnode reported on August 19th that BTC exchange flows have switched to outflow dominance between July and August. This suggests bullish accumulation with more investors willing to withdraw to cold storage and hold as opposed to leaving funds on exchanges with an eye on liquidating.


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