Crypto Report | August 2024

Key Takeaways

In July, cryptoassets rebounded from oversold levels, with Bitcoin outperforming traditional assets amid potential Fed rate cuts, while Ethereum underperformed due to Grayscale outflows.

Worsening US economic and labour market conditions support imminent Fed rate cuts, which, despite short-term challenges for Bitcoin, could ultimately benefit it due to positive political developments and reduced correlation with traditional assets.

From an on-chain perspective, July saw a tactical Bitcoin price bottom due to seller exhaustion, improved market conditions, and political support, suggesting potential for renewed retail participation and a sustained bull cycle, bolstered by the positive impact of the Bitcoin Halving event.

Read more in our latest monthly report here.

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