Strong Market Rebound Heading into ETF Launch!

Author

Will McKinnon
July 19, 2024

Weekly Beluga Insights

Funny enough, the German Government selling their $4B bag of Bitcoin last week seems to have cemented the local bottom for now. BTC is currently sitting up over 11% from last Friday at time of writing and continues to look strong on this rebound. In other government news, the US election drama is heating up as we draw closer to actual election day in November. Given Biden and the Democrats’ previously negative stance on crypto, this shift towards Trump now being favored to win has been seen as positive for the industry.

Messaging from the SEC as well as ETF experts from Bloomberg seem to indicate that the Ethereum ETFs will finally begin trading 4 days from today, on the 23rd of July. I expect the inflows to outperform estimates, however we should not be expecting Ethereum to rip to all-time-highs overnight. Rather, much like what we saw with the Bitcoin ETF, I expect it to take a few weeks for the impact of positive inflows to really be felt. As always, we’ll be keeping an eye on all of this and update our readers as we progress through the rest of the bull market!

Major Movers of the Week

  • Dogwifhat (WIF) +49.15%

    • WIF is the hottest memecoin on the Solana blockchain after rising to popularity earlier this year.

  • Worldcoin (WLD) +42.86%

    • WLD is backed by investors such as Sam Altman and aims for universal basic income as well as cryptographic identity proofs.

  • Helium (HNT) +37.74%

    • HNT is the primary token for the Helium ecosystem, one of the most successful DePIN projects on the market.

Public Trading Wallet Update

I haven’t made any new trades since the update of buying more Bitcoin and Ethereum last week, which luckily came just before the 10% pump we saw on BTC. I now plan to wait and see what happens next week with the expected launch of ETH ETF trading on Tuesday, and continue to be patient scaling into our positions as we have been since we launched the trading wallet. If all things go well with the launch and inflows are strong, I expect that to kick off a massive rally among alt coins.

Since Ethereum is the focus for now given the upcoming catalyst of the ETF, coins that have a strong connection to the price of ETH such as Layer 2 coins Arbitrum and Optimism or EVM-based DeFi coins like Curve are a good bet. We always looks for where the most attention will be, and I believe for the next few weeks that will be on the ETH ecosystem.

Aside from the tangible catalysts like the ETF, I will say there has been a very noticeable sentiment shift among crypto-natives in the last week. We went from most people being bearish to bullish very quickly, and while Crypto Twitter sentiment does tend to change rapidly it doesn’t usually happen in this magnitude. It feels like people are waking up out of their slumber from the sideways price action this Summer, and I’m excited to see how things heat up from here.

Quick Quips: Catch Up on What You Missed

Ryan Selkis, Founder and CEO of Messari

Tweet of the Week

You may not have known you wanted this, but Web3 prediction market platform Polymarket has set up a competition between Joe Biden and a head of lettuce. We eagerly await to see which one wins.

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The content on this site is for informational purposes only and should not be construed as investment advice. While Beluga strives to ensure the accuracy and timeliness of information, there may be discrepancies when comparing our data to that of financial institutions, service providers, or specific product websites. Always consult with a professional before making any financial decisions.

Will McKinnon is the Head of Content for Beluga and has spent every day for many years trading coins. For that reason there are too many to name, however his largest holdings by a significant margin are Ethereum and Bitcoin. NFA DYOR