State Street’s Blockchain Ambitions: A Leap Towards Crypto Settlement

State Street, a global asset manager, is eyeing a major move into blockchain technology. According to a Bloomberg report, the firm is considering creating its own stablecoin and deposit token, leveraging its investment in UK-based payment startup Fnality. This could position State Street at the forefront of settlement technology, joining the ranks of JPMorgan and Goldman Sachs, who have already made significant strides in this space.

State Street has a history with crypto, having created a digital finance division in 2021 and participating in various blockchain projects. The firm also manages several Bitcoin ETFs and is looking to expand its digital asset offerings.

State Street’s potential leap into blockchain settlement technology could signal a new era for the firm and the industry.

Bitcoin’s Bullish Momentum: Analysts Predict $220K Price Target

Bitcoin’s recent surge above $65,000 has sparked predictions of a potential climb to $220,000. Analysts point to historical miner capitulation patterns, which have previously led to massive price increases following Bitcoin halving events. For instance, past cycles saw BTC gains of 5,110%, 3,346%, and 591%.

Crypto analyst Cryptonary highlighted that if the current miner capitulation ends soon, Bitcoin could peak at $223,000 based on historical trends. Other experts, like Michael van de Poppe and Cryptocon, suggest that holding above $65,000 and reclaiming the 2021 all-time high could trigger a parabolic rise into new price discovery zones.

With Bitcoin currently trading around $64,300, the stage seems set for an exciting bullish run. Don’t miss out on this potential price action as Bitcoin aims for new heights!

Spot Bitcoin ETF Inflows Surge, but BTC Stalls Below $65K

Despite net inflows of $1.91 billion into US spot Bitcoin ETFs since July 5, Bitcoin’s price struggles to rise above $65,000. Arbitrage trading and a drop in demand for inflation hedges are key factors.

While the S&P 500 and gold hit record highs, Bitcoin’s underperformance isn’t tied to traditional finance. Hedge funds engaging in arbitrage trades, like cash and carry, are not long-term BTC holders and don’t bet on price movements. Increased activity in CME’s Bitcoin futures also suggests market-neutral strategies.

US economic confidence and decreasing inflation reduce Bitcoin’s appeal as an alternative store of value. Consequently, positive macroeconomic data weakens BTC’s price momentum, despite the bullish ETF inflows.

Spot Ethereum ETFs Are Coming, But ETH Derivatives Markets Remain Cautious

Despite the approval of two new spot Ethereum ETFs and an upcoming launch of more, Ether’s derivatives market shows little excitement. After a 12.5% rally, ETH hit resistance at $3,500 and corrected to $3,400. Analysts predict a $5,000 price by the end of 2024, driven by low inflation, low costs for validators, and high staking.

However, the derivatives market remains flat, with Ether futures showing moderate optimism but not enough to suggest a significant price jump. While Ethereum’s on-chain data and DApp activity remain strong, macroeconomic factors like US inflation and China’s GDP growth pose challenges. Without increased confidence from investors, a breakout above $4,000 seems unlikely in the near term.

Microsoft Windows Outage Disrupts Banks and Travel Worldwide

A global Microsoft Windows failure, possibly linked to a CrowdStrike software update, has caused widespread disruption to critical services, including banks, airports, and emergency systems. The outage began on July 18, impacting institutions worldwide and sparking operational chaos.

The banking sector has been hit particularly hard, with customers unable to access online services across the UK, US, Australia, and India. Airports reported grounded flights, and emergency services in Oregon experienced downtime.

As Microsoft works to resolve the issue, the crypto community has responded with a surge in meme coins related to the incident, highlighting the adaptability and opportunism within the digital asset space.

Bitcoin Hashrate Drop Hits Bear Market Levels, Miners Hold Steady

Despite Bitcoin’s hashrate dropping to levels reminiscent of the December 2022 bear market, miners are not rushing to sell. The recent dip comes after Bitcoin’s fourth halving in April, which reduced miner rewards, and amid recent price fluctuations. However, mining giants like Marathon Digital Holdings have maintained their holdings, indicating confidence in Bitcoin’s long-term value.

Experts dismiss fears of a “miner death spiral,” citing Bitcoin’s built-in difficulty adjustment mechanism. This system ensures that even if some miners capitulate, the network adjusts to maintain balance, potentially attracting new miners. While the hashrate decline could hint at price drops, historical data suggests Bitcoin’s price leads hashrate changes, not the other way around. Overall, Bitcoin’s network security remains robust despite current fluctuations.

Sources:

https://cointelegraph.com/news/state-street-blockchain-stablecoin-digital-cash-plans

https://cointelegraph.com/news/analysts-forecast-200k-bitcoin-price-after-btc-s-bullish-momentum-returns

https://cointelegraph.com/news/spot-bitcoin-etf-inflow-surge-but-btc-struggles-to-rally-above-65k

https://cointelegraph.com/news/microsoft-windows-data-blackout-downs-major-financial-firms-airlines

https://cointelegraph.com/news/bitcoin-hashrate-bear-market-miners