After experiencing volatility in the first half of 2022, the cryptocurrency market seeks to maintain the short-term gains gained in July.
Notably, the industry has reached a new monthly high in capital inflow, driven by significant market cap cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
According to statistics from CoinMarketCap, the global crypto market capitalisation reached a 1-month high of $1.13 trillion on August 8, up almost $18 billion from the $0.95 trillion recorded on July 8.
Bitcoin and Ethereum gain the most among cryptocurrencies
After seeming to decline at the beginning of August, the overall value of significant cryptocurrencies turned positive. As of press time, the leading cryptocurrency, Bitcoin, was trading at just over $24,000 after increasing about 3 percent during the previous week.
In addition, the Ethereum community is positive as it prepares for the Merge upgrade, which will move the blockchain to a Proof-of-Stake (PoS) protocol. At the time of publication, the asset was valued at $1,743, an increase of almost 3 percent in a week.
Bitcoin’s price remains over $23,000
Bitcoin seems to be maintaining its position above $23,000 after the possibility of a decline below $20,000 looked imminent.
It is noteworthy that Bitcoin fell below $23,000 before the U.S. Labor Department data on Friday morning. The data suggested a rise in new employment in the United States, concluding concerns that the economy was weakening further.
A prolonged downturn would have prompted the Federal Reserve to adopt a significant increase in interest rates, which may have precipitated a recession. The addition of almost 500,000 jobs demonstrated the economy’s resiliency despite the soaring inflation.
Despite the persistence of difficult economic conditions, the market has seen an increase in the number of institutions investing in the crypto industry. Asset manager Brevan Howard, for instance, launched the biggest crypto hedge fund with over $1 billion in assets under management.
BlackRock has partnered with the cryptocurrency exchange Coinbase to allow institutional bitcoin investments.