Market Wrap Up - July 29


What happened in the crypto market this week?


After a strong rally last week, the crypto market started this week with a severe correction (approximately -10%). But the Fed, aware of the negative economic impact of its aggressive policy, signaled an inflection towards a slowdown of interest rates hikes. This expected 75bps interest hike led to a rebound on the market. Following the announcement, equities rose (SPX +2.60%; Nasdaq 4.70%) and so did Bitcoin (+10%, recovering losses). The upward movement over the parallel channel needs to be confirmed but we could see Bitcoin reach the $25,000 zone.

BTC/USDT 4H Chart - TradingView

Source: TradingView – Past performance not indicative of future results.


A strong end-of-week rebound was also observed for ETH, which is now approaching the $1,800 Fibonacci resistance zone. The strong upward acceleration of the ETHBTC pair towards 0.075 is a further sign of investors’ risk appetite.


Which coin has performed best this week? 


Let’s focus this week on the Uniswap protocol and its token UNI, which marks a 22,3% performance over the last 7 days. 

Iin one of its latest proposals, Uniswap protocol’s DAO suggested that a portion of the transaction fees could be distributed to UNI holders. 

According to CryptoFeesInfo, the protocol’s daily fees range between $1M and $2M. On a 30-day basis, the average is about $1.6 million daily. This makes Uniswap the 2nd most profitable protocol after Ethereum in terms of revenue. 

This “fee switch” proposal could mark a true shift in the DeFi ecosystem. Governance tokens are often considered useless by the community – they could now be of great interest, which justifies the appreciation of the token price.


What about our strategies? 


Best bot performers of the week are BTC AR Bot 4, Pulse: MATIC and Artificial Intelligence (AI) Pick.

  • Pulse: BTC Hourly 2 (+18.5%) benefited from a full exposure on July 26 before the BTC rally on July 27.
  • Pulse: MATIC (+8.60%) took advantage of volatility on its underlying asset with full exposure.
  • Artificial Intelligence (AI) Pick (+7.82%) took a 50% long exposure on ETH’s July 26 drop at $1,400, before the end-of-week 21% ETH rally.

Worst performers are Pulse: BTC (-9.5%) and Pulse: ETH (-6.72%) which unwound their exposure on July 26 and were late to rebuy after the rally.

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Disclaimer:

Investing involves risk, including the possible loss of all the money you invest. In particular, crypto-assets are a highly volatile and speculative asset class. Napbots is only suitable for traders who are willing to bear the risk of loss and experience sharp drawdowns. Past performance is not necessarily a guide to future performance. 

The purpose of this material is to provide objective, educational and interesting commentary and analysis on developments in the crypto-assets sector. Nothing in this material should be interpreted as constituting an offer of (or any solicitation in connection with) any investment products or services by any member of the CoinShares Group where it may be illegal to do so. Access to any investment products or services of the CoinShares Group is in all cases subject to the applicable laws and regulations relating thereto.