Many exciting and groundbreaking topics await us in the digital asset market in the coming months. The Bitcoin Spot ETF applications, where the decision on acceptance or rejection by the SEC has been postponed for another 45 days, or the upcoming Bitcoin halving in the first months of the coming year, represent such fundamentally important events that investors are waiting for a favourable buying opportunity. Looking at investments counter-cyclically, there could be potentially good buying points in digital assets in the near future.
Thought of the week
Digital Asset News
Charles Edwards from Capriole Investments estimates the actual market value of Bitcoin at more than 47,000 US dollars and still sees considerable room for improvement. The Bitcoin price (BTC) is currently moving in a narrow price range between 25,500 and 26,500 US dollars, which is why there is disagreement among observers as to which direction the market will trend.
Expert Charles Edwards, however, is extremely optimistic in view of this situation and sees this as the optimal long-term buying opportunity with low risk at the same time. Edwards concludes this in turn from the production costs of in connection with electricity consumption.
The so-called “Energy Value Theory” by Capriole Investments estimates the so-called “Fair Value” – the actual market value – of Bitcoin at 47,200 US dollars. Edwards explains that the production costs alone suggest a minimum price of 23,000 US dollars for BTC. The risk-reward ratio is thus at least 1:5, whereby the Bitcoin price even has a lot of room for improvement, because according to Edwards, this calculation assumes that the market-leading cryptocurrency “would stop at its fair value, which has not yet happened in any bull run”.
Coinbase, the well-known digital asset platform, emphasizes that it wants to focus more on regions outside the US, including the European Union (EU), because of the improved regulatory framework.
The reason for this is explicitly the clearer crypto regulation of the regions in question as a motivator.
In a company blog post on 6 September, Coinbase’s vice-presidents of international business and international policy, Nana Murugesan and Tom Duff Gordon, referred to the European Union (EU), the United Kingdom (UK), Canada, Brazil, Singapore and Australia as “priority markets in the near future” accordingly.
This once again shows how advanced the European Union has positioned itself in the field of digital assets and could benefit greatly from this development.
The crypto data service Arkham claims to know the wallet addresses of Grayscale’s influential Bitcoin fund and confirms its asset declarations. The Grayscale Bitcoin Trust indeed holds over 16 billion US dollars in BTC. Issuer Grayscale is currently in litigation with the US Securities and Exchange Commission (SEC) to convert the investment fund into a “direct” Bitcoin exchange-traded fund (ETF).
The trust accordingly consists of more than 1,750 addresses holding a total of more than US$16 billion worth of bitcoin, according to an Arkham thread posted on X (formerly Twitter) on 6 September. This coincides with Grayscale’s own data, making it the second largest Bitcoin holder in the world & highlighting the importance of appropriate risk optimization, in this case diversification across many wallets, to succeed in the digital asset market environment.
Digital Asset Market
The majority of digital assets saw a return to the low volatility and narrow price range that has prevailed for weeks last week. After the SEC postponed the decision on the Bitcoin Spot ETFs filed by Blackrock, Fidelity and co. by another 45 days and the appeal against Ripple took shape, gloom ensued in the market environment of the digital assets and the slightly positive basic mood on the market evaporated. Thus, an “emotionally charged” catalyst is again needed to establish positivity in the market on a sustainable basis. The current circumstances in the market, as well as the focus on a few but significant developments (Bitcoin Halving & Bitcoin ETFs), ensure that the current short-term development is neglected and investments are “held back”. This makes it very difficult for trends to establish themselves and leads to slight negativity, especially in altcoins, which could temporarily cause further selling pressure. On a weekly basis, the overall market development is ~-1.2% – this illustrates the slightly negative trend.
For the coming week, the motto is once again: support zones must be held, as no significant catalyst is driving the market.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.