Highest weekly close in euros for BTC
For the first time, Bitcoin has ended the week above the symbolic ā¬100,000 mark. This seems to confirm a new upward trend. In this edition of Market News, we look at the price movement and discuss the growing trend of large companies accumulating Ether. Weāll also explore the growth of DeFi and stablecoins.
Market update
Bitcoin closed at ā¬101,700 last night, its highest weekly closing price ever, ending above ā¬100,000. TheĀ price of BTC is now just 2% off its all-time high of ā¬106,000 on January 20th, the day President Trump was inaugurated.
In US dollar terms, the price is now well above its January high. Between Thursday and Monday, the price jumped from $110,500 to $122,500, an 11% increase. This is the first significant breakout above the previous all-time high since November.
It's reasonable to assume that we're seeing the start of a new uptrend that will carry us higher in the coming weeks. Price targets between $150,000 and $165,000 areĀ well within reach.
The rest of the crypto market is still hesitant, with a few exceptions. Altcoins remain well below their January 20th highs. Ether is struggling to break above the $3,000 mark, and Solana needs another 75% rise to reach a new record. Altcoins are unlikely to catch up until retail investors return in large numbers with more risk appetite and renewed enthusiasm.
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Emerging trend: listed companies start buying ether
Following the rise of companies holding Bitcoin as part of their corporate reserves,Ā ether now appears to be attracting attention too. Eleven publicly traded companies have now added approximately 500,000 ETH to their balance sheets.
This is a relatively new development. Almost all of these purchases have occurred in the past two months. Compared to Bitcoin, it's still small-scale: publicly listed companies now hold more than 850,000 BTC, over 4% of the total supply. For Ether, that percentage is still below 0.5%.
For now, the trend is mostly being driven by three companies listed on the NASDAQ:Ā SharpLink Gaming,Ā Bit Digital inĀ BTCS. According to data fromĀ StrategicETHReserve.xyz, SharpLink holds over 200,000 ETH, followed by Bit Digital with over 100,000 ETH.
BTCS announced this week that itĀ plans to acquire $225 million worth of additional ether. BTCS's strategy focuses on increasing the amount of ETH per share. The company also uses its ETH for staking and other DeFi applications to generate returns in ETH.
SharpLink Gaming currently tops the list. An interesting detail: earlier this year, the software companyĀ Consensys, a heavyweight in the Ethereum world, invested $425 million in SharpLink and has since taken an active role in the company. Co-founder of Ethereum, Joseph Lubineven joined as Chairman of the board.
Time will tell whether this will remain limited to a few companies or whether we're at the beginning of a broader trend. Whatās clear is that investors can now gain exposure to Ether, and to staking income, through these shares. Thatās not yet possible with ETFs, as they arenāt allowed to include staking rewards.
Interest from publicly traded companies could put Ethereum on the radar of a new type of investor, just as Michael Saylor's Strategy previously did for Bitcoin.
In other news
Ethereum climbs back above $3000, with stronger fundamentals. Inflows into spot ETFs are increasing, some companies are shifting parts of their reserves into ETH, andĀ the price is well above key moving averages, which are keenly watched by traders. Together, these signs suggest confidence is growing among long-term investors. However, the rise is still in its early stages, and Ether has a long way to go compared to Bitcoin.
Rippleās stablecoin RLUSD enters the top 10.Ā RLUSD quickly grew to a market value ofĀ over $500 million. The increase is partly due to institutional integrations with Transak and BNY Mellon. Ripple is aiming for a serious role in the mainstream financial world. The company has also applied for a banking license in the US.
Aave is the undisputed leader in DeFi.Ā In Q2, the platform grew 52% to $25.4 billion in total value locked (TVL). Aave now manages 48% of all DeFi loans and has absorbed nearly a quarter of the capital in the DeFi market.Ā ItsĀ growth is not only due to regular tech upgrades (such as the upcomingĀ V4-upgrade), but also trust: investors are looking for safe, mature protocols. Aave'sĀ message? āNext stop: $1 trillion.ā
Fidelity sees Ethereum not as a tech platform, but as a digital economy with ETH as its "base money."Ā In a new report, the major asset managerĀ compares Ethereumās network growth and activity to a country's GDP. Gas fees represent consumption, staking is investment, and token trading and cross-chain transactions count as exports. As with real economies, it's precisely these diverse use cases that makes Ethereum resilient, writes Fidelity. ETH derives its value not from interest rates or policy, but from usage.
Satoshi Radio: InĀ the latest episode of Satoshi Radio, you'll get a comprehensive update on BTCās new price record. The key question: is this the top or just a stopover on the way to greater heights? You'll also get an update on the most important news, including the upcoming āCrypto Weekā in the US and the mysterious bitcoin whale that moved 80,000 BTC.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.