BTC Price Crashes Amid Recession Fears: Was $49,000 the Bottom?
Charting the Path from $49,000 Low and more on AI and Real World Assets (RWAs)
Is this the final dip of the summer before Bitcoin and Ethereum head to new all-time highs? In this weeks newsletter, we'll explore the recent market turmoil and its potential impact on the future of these leading cryptocurrencies.
Bitcoin, Ethereum, and the broader crypto markets were hit hard this past weekend as recession fears swept across the USA, leading to crashes in the Japanese stock market, the US market, and cryptocurrencies. The US market lost almost $3 trillion in value over a very short period, more than the entire market capitalization of the cryptocurrency sector.
This decline impacted Bitcoin and particularly affected Ethereum and altcoins, which are more susceptible to volatility due to their smaller market caps and lower liquidity.
Could this be the 2024 bottom for Bitcoin? Let’s explore further:
At its peak, Bitcoin's "Fear and Greed" index reached a level of 14. With so much fear in the market, it's hard not to recall the old adage for long-term investors: buy when there’s blood in the streets.
Many traders and investors might need a stroke of luck to buy at the exact bottom, but it's almost certain that, at some point in the (hopefully near) future, Bitcoin will be priced higher than today, and the Index will return to a neutral level of 50.
While there is further analysis in the market section below, it’s not yet safe to say that this was the absolute bottom. Although crypto has experienced some small recoveries, we will continue to fluctuate within the $55,000-$70,000 range until we move above $70,000 USD per BTC. However, when Bitcoin does rise, it can do so quickly and significantly, so staying completely sidelined might not be the best strategy.
Meanwhile, other narratives in the crypto space continue to evolve. This week, let's focus on AI and Real World Assets (RWAs).
What are the Narrative in this market moving forward? More on AI & RWA
Despite the volatile movement of Crypto as a whole, I still believe that AI will continue to be one of the leading sectors of growth. The demand for GPU processing power is skyrocketing as AI algorithms improve, and there’s a major role that decentralized networks can play in helping meet that demand.
This week I spoke with Aethir, who have built a decentralized cloud infrastructure that is delivering processing power to some of the biggest AI companies in the world.
Mark Rydon and I discuss the intricacies behind how much processing power AI companies are going to need as AI grows to the next level, and how they’re helping deliver that power. Gaming also plays a role, as it requires significant processing power, but the demand as AI tech gets better will be exponential more in the near future. There’s a reason NVIDIA has quickly turned into one of the largest companies in the world.
I expect more processing and AI companies to become Trillion dollar companies soon, so the more you know about the processing power behind this part of the industry, the better.
Part of Aethir’s growth is also the release of physical hardware. They have release the “MyEdge” DePIN hardware that enables everyday people like us to become validators of the decentralized network, potentially earning rewards for it in the process. They also recently had a “Node Sale” which sold out quickly, so I expect the demand for the MyEdge to be filled without problem.
Listen to our full conversation below and learn more about AI, their MyEdge Hardware, and $ATH staking.
“RWA” is Growing: $250M in Emeralds Tokenized on Everest $ID
Remember when BlackRock announced a their building a crypto fund specifically for RWA (Real World Assets) in Web3 earlier this year? It’s partially because they realize that soon everything will be tokenized, driving further liquidity and utility to everyday assets which were previously illiquid or hard to devise.
Well, a major tokenization play just happened in the traditional mining space. For those old school mining investors, they are familiar with the fact that traditional mining has low liquidity, assets that take a long process until they can get into the state that they are sellable, and overall long time frames to generate an ROI.
Everest has partnered up with a Global mining company, viaarpe, to tokenize emeralds from one of their mines in Mexico. This tokenization is backed by over $600M in collateral in custody of Everest. They’ve tokenize the emeralds into a $GEMS token. The token even provides a 4x refund utility for 36 months of holding GEMS, and can also be staked in the meantime for further $ID tokens.
It’s great to see mining companies finally starting to experiment with tokenization, and this initiative specifically should set the bar for other mining operations to provide liquidity through a token, with guarantees, and transparent known returns.
I spoke with Bob Reid, CEO of Everest, who are leading the custody and tokenization of the mining operation and the GEMS token launch, to discover how much potential there will be in RWA and in the mining sector. Once you realize this is the start of a quadrillion dollar industry of tokenizing not just all financial assets, but all real world assets as well, you’ll want to learn more on this quickly. See our full interview below.
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I am keeping an eye on both the AI and RWA sections, and the next newsletter will feature more under-the-radar AI projects. Additionally, the Bitcoin narrative continues to evolve, with many projects focusing on Layer 2 solutions and re-staking.
Bitcoin remains the strongest and most secure blockchain of them all. Stay tuned for more updates!
Now, let’s move on to other crypto news, market updates, and airdrops.
Other Crypto News:
Over $1,000,000,000 was liquidated from the cryptocurrency market during the Monday August 5th crash
California Puts 42M Car Titles on Avalanche
Judge orders Ripple to pay $125 million in civil penalties, officially ending the SEC's lawsuit & concluding XRP is not a security
Michael Saylor says he personally owns more than $1 billion worth of Bitcoin.
$1.3 trillion asset manager Morgan Stanley advisors to offer spot Bitcoin ETFs to clients starting today.
Total spot Bitcoin ETF trading volume surpasses $2.1 billion on the day of the market crash.
Market Analysis:
Bitcoin has dropped significantly following a market shock, which ironically was largely driven by traditional markets and stocks.
Over the past weekend, negative news about unemployment numbers and recession fears emerged, but the regular stock market was closed and unable to react. As Bitcoin operates 24/7, this negative sentiment was immediately reflected in Bitcoin’s price.
Although Bitcoin has already sustained considerable damage, it’s difficult to confirm whether $49,000 was the absolute bottom. In the next two weeks (while Mercury is in retrograde), there is a possibility of one final dip, potentially between $45,000 and $50,000.
We have outlined an optimistic view (in green) and a neutral/pessimistic view (in yellow).
While the market won’t recover immediately, by September and as we move toward the election, there is likely to be further upside for the stock market and, subsequently, for Bitcoin and the crypto markets. American politics generally prevent the stock market from crashing before the election, and historically, this period has often been favorable for market growth.
A bit about Japan: While the Japanese stock market was open during the news, it experienced its biggest crash since the 1987 stock market crash. This is significant. It fell 13% in one day but, remarkably, rebounded by 10% the following day. The fragile state of the Japanese markets and the Yen's performance in the FOREX market compared to the dollar is a separate issue from crypto but is worth exploring if you want to understand the global macroeconomy better.
Airdrops:
Linea:
If you've completed the Linea Proof of Humanity (PoH), you’re eligible to register your Linea name at no cost. ✅ Register here.
Continue LPing and Staking ETH on Linea chain for LXP Points!
Scroll:
Scroll Sessions continues to go on, and depositing LP into certain DEX’s on Scroll chain will lead to more “Scroll Marks” for the upcoming airdrop.
There are also Scroll “Badges” now, which help you explore the ecosystem and provide a potential bonus for the airdrop when it comes. Highly recommend checking it out here.
Thanks for reading!
-Ashton Addison, CEO of Crypto Coin Show
Great insights on the market trends! I really appreciate the in-depth analysis, especially the section on AI and RWAs. It’s clear how these sectors are shaping up to be key players in the near future. Thanks for breaking it down so well!
Thanks for the great info!! Appreciate it:)