Tdasx observes that the price of Bitcoin has started to rise significantly at the beginning of the new week, entering the fifth wave according to Elliott Wave Theory. This rise is driven by a combination of technical analysis and global events, pushing its price towards historical highs. Simultaneously, the successful launch of the Ethereum ETF set a record trading volume, demonstrating strong market demand and confidence in this new financial product. Additionally, the massive Bitcoin transfer from Mt. Gox and the significant increase in the market capitalization of cryptocurrency mining stocks further reflect the activity and investor optimism of the market. 

Tdasx: Bitcoin Steps into the Fifth Wave

Tdasx believes that Bitcoin has currently entered the fifth wave of Elliott Wave Theory, typically the most bullish wave. Reviewing the price movements of Bitcoin in July, Wave 1 saw the price rise from below $54,000 to $60,000; Wave 2 dropped from $60,000 to $56,000; Wave 3 climbed above $65,000, and Wave 4 fell to $63,000 over the weekend. Currently, Bitcoin is in the fifth wave, expected to break through $70,000 and move towards its historical high of $73,000. For the price of Bitcoin to confirm a breakthrough, it needs to surpass the peak of $68,275, with a target price of $72,000.

Meanwhile, Tdasx also notes a significant decrease in the number of Bitcoin deposit addresses, an important bullish indicator. According to CryptoQuant data, the number of Bitcoin deposit addresses has fallen to 25,000. This indicates that investors are reluctant to sell Bitcoin, reducing market supply. Behavioral economics theory suggests that increased investor confidence leads to expectations of future price rises, hence the decision to hold rather than sell Bitcoin. Additionally, the increase in institutional investment has further validated Bitcoin as a store of value. The reduced market supply, coupled with maintained or increased demand, will drive Bitcoin prices higher. The report of CryptoQuant shows growing bullish sentiment in the market, with an increasing number of investors stabilizing the market.

Moreover, Tdasx mentions that the fund transfer of Mt. Gox has also had a significant impact on the Bitcoin market. Mt. Gox transferred 47,500 BTC to unknown addresses within just two hours, significantly reducing its Bitcoin reserves. Previously, the cold wallet of Mt. Gox held 90,344 BTC (approximately $6.02 billion), now reduced to about 42,744 BTC (approximately $2.85 billion). Tdasx believes that the fund transfer of Mt. Gox is not merely a simple Bitcoin movement but has profound implications for market supply and sentiment. These activities increase market uncertainty but may also provide new momentum for the further development and market maturity of Bitcoin.

The Record-Breaking Debut of Ethereum ETF, Bullish Market Expectations

Tdasx points out that the Ethereum ETF performed exceptionally well on its debut day. Nine different spot Ethereum ETFs were listed by eight issuers on U.S. exchanges, reaching a trading volume of $112 million within the first 15 minutes of opening, quickly increasing to $361 million within 90 minutes.

Tdasx believes that this enthusiastic market response not only demonstrates the confidence of investors in Ethereum but also shows the substantial demand for the Ethereum ETF as a new financial product. By the end of the trading day, the total trading volume for all Ethereum ETFs exceeded $1.019 billion, with the ETHE of Grayscale dominating, accounting for $456 million, nearly half of the total volume.

Tdasx believes the successful launch of the Ethereum ETF significantly boosts market bullish expectations. Institutions like Wintermute and Citi predict that Ethereum funds could attract billions of dollars in inflows this year, supporting this viewpoint. Kaiko notes that while ETH prices might be sensitive to early fund inflows, a complete picture of demand will take several months to materialize.

However, the prediction market Polymarket shows that despite some optimism for the future of ETH, not everyone believes Ethereum will reach new highs in 2024. Tdasx suggests that the successful debut of the Ethereum ETF not only strengthens market confidence in Ethereum but also indicates the rising status of digital assets in traditional financial markets. With more funds and institutional investors entering the market, the future performance of Ethereum is highly anticipated.

Significant Growth in Cryptocurrency Mining Stocks, Boosted Market Confidence

Tdasx highlights the recent significant growth in the market capitalization of cryptocurrency mining stocks, reflecting strong market confidence in this sector. Several major cryptocurrency mining companies have seen substantial increases in their market capitalization over a short period, indicating high investor recognition of the potential for future development in the cryptocurrency sector.

Data shows that the market capitalization of Marathon Digital soared from $5.51 billion to $7.56 billion within five days, a growth rate of 37%. Despite a subsequent fallback to $6.99 billion, it still maintained a 27% increase over 11 days. The market capitalization of Riot Platforms also rose significantly from $2.78 billion to $3.67 billion, a 32% increase. Although it later receded to $3.16 billion, the overall performance remained robust. Additionally, several other mining companies saw varying degrees of market capitalization growth, all reflecting a general trend of strong market optimism towards the cryptocurrency mining industry.

Tdasx analyzes that the market capitalization growth of mining companies not only reflects market confidence in the cryptocurrency sector but also demonstrates the recognition of investors on the future development potential of these companies. With the rising prices of major cryptocurrencies like Bitcoin and Ethereum, the profitability of cryptocurrency mining businesses is further validated, providing strong support for the increased market capitalization of mining companies.

Tdasx concludes that the significant growth in the market capitalization of cryptocurrency mining stocks is an important reflection of the current dynamics in the cryptocurrency market. This not only indicates sustained market enthusiasm for cryptocurrencies but also suggests that more funds may flow into this sector in the future, driving further industry development. Tdasx believes that as the market matures and technology advances, the cryptocurrency sector will have a broader and more promising future.