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crypto market: July turns best month for cryptos so far this year; will the momentum continue?

July turned out to be a spectacular month for the crypto market as major digital tokens reported their best performance in the last month.

For the month of July, Bitcoin rose about 25 per cent hitting the $24,000 mark, whereas Ethereum rallied close to 55 per cent, changing hands around $1,700.

Other top tokens including Cardano, Solana, Polkadot, Polygone, Dogecoin and Shiba Inu made a quick recovery to lift the total market capitalization of the crypto market over the $1 trillion mark.

Ethereum gained twice as much as Bitcoin, said WazirX Trade Desk.

Interestingly, in July, Elon Musk-owned electric carmaker Tesla announced to slash its Bitcoin holding by 75 percent. The company had sold its partial holding last year.

Cathie Woods Ark sold 1.4 million Coinbase shares worth $75 million. “The US Securities and Exchange Commission is investigating the company for allowing Americans to trade in tokens that should have been registered as securities,” said WazirX.

The global crypto market was on a bullish trajectory last week thanks to a less hawkish fed, ease in inflation worries and recovery in the risk appetite of investors for riskier assets, leading to a steady recovery.

Citing CryptoCompare’s report, Edul Patel, CEO and Co-founder of Mudrex said that Ethereum and its related products have led the market to rebound in July. “Amid all the buzz, Ethereum is just one step away from the merge,” he said.

Some cities in the US, such as Miami, have continued to provide unending support to crypto expansion plans. Miami will soon launch 5,000 Ethereum NFTs with Mastercard, Time, and Salesforce, he added.

According to Patel, $24,000 is the level of correction in Bitcoin, before it prepares for the $25,000 mark in the coming weeks. On the other hand, Ethereum might head to $2,000 if it sustainably breaks $1,700 levels, he added.

Overall, the market is expected to maintain this pace of momentum, suggest market experts.

The crypto market witnessed a mini-rally with heavyweights – Bitcoin and Ethereum – registering their best performance in recent months, said Tarusha Mittal, COO, and Cofounder, UniFarm.

“Uniswap has witnessed a mega rally as it has surged by over 140 per cent from its lowest point this year owing to the euphoria around activating ‘Fee Switch’ which is expected to reward Uniswap holders,” she added.

The macroeconomic factors surrounding the financial markets will decide the future course but inflation, high energy prices, and recession fears are expected to keep the investors on their toes in the coming weeks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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