Report suggests Bitcoins growth hindered by global instability while Ethereum may experience a significant surge
According to a recent report from Copper Research, global events have caused Bitcoin’s price to remain stagnant, while Ethereum’s limited supply could result in a price surge.
The latest edition of Copper Research’s “Opening Bell” report highlights that although Bitcoin has shown resilience against the German government’s sale of 40,000 coins, overall market conditions have been challenging, causing the gains made since Bitcoin’s all-time high in March to be erased.
The report suggests that Bitcoin has seen little buying activity due to increased market volatility, which has been driven by various global events such as the US election, UK riots, Middle East tensions, and changes in Japanese central bank policy.
Initially, market participants took advantage of the dip in price during the German sell-off. However, recent market volatility has reduced interest in risk assets, resulting in minimal buying activity for Bitcoin.
Despite the unexpected supply from Germany, the market has not seen any significant 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, according to the report.
In addition to Bitcoin, the report also examines Ethereum’s supply dynamics. The adoption of Layer-2 solutions has returned Ethereum to an inflationary state since mid-April. However, a significant portion of Ethereum is being locked into smart contracts.
This limited supply of Ethereum could potentially decrease the circulating supply and create upward pressure on prices by the end of the year.
As of August 12th, 66% of Ethereum addresses are currently profitable, with Ethereum trading just above $2,600. This is an increase from the previous week when only 63% were profitable.
However, this is still lower than the 75% of addresses that were profitable when Ethereum was trading above $3,159 earlier in the month. Around 3.59 million addresses would need a price increase to between $2,679 and $2,755 in order to become profitable.
The report also highlights the significant growth of tokenized assets, with blockchains adding over $1 billion in tokenized government products this year. McKinsey has projected that the market value of tokenized real-world assets could reach up to $4 trillion by 2030, driven by factors such as 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.
