☀️ Tropical trading conditions will prevail over Bitcoin in the next 24 hours, indicating clearly bullish market conditions and attractive buy opportunities. However, numerous altcoins, including Ether, Binance Coin, Ripple’s XRP and Cardano, will face drizzle or slightly bearish market conditions.

🌧️ Over a one-week time horizon, Bitcoin will also face drizzle, while Ether should profit from a timid sun or slightly bullish market conditions, according to ATTMO.

The trading signals available at 8:10 CET are the basis for the projections mentioned above. Please check whether ATTMO's signals have changed since then, before making an investment decision.

Crypto assets bounce back, recovering some losses after the past two days’ crash

Cryptocurrencies rebounded slightly over the past 24 hours, recouping some of Sunday’s and Monday’s double-digit declines when investors sold off riskier assets in response to the fading AI hype, geopolitical tensions in the Middle East, the end of a 17-year era of free yen carry trades and emerging recession signals. The likelihood of a recession in the US within the next 12 months has risen to 25 percent from 15 percent, according to Goldman Sachs.

The price of Bitcoin fell below $50,000 to a five-month low on Monday, but traded up 13 percent at $55,936 over the past 24 hours, Trading View’s Bitcoin chart shows.

“Bitcoin's brief visit below $50K coincided with the largest week of volume (~$99B thus far) since the November 2022 FTX collapse. And due to the bullish trader sentiment just prior to this crash, average returns of BTC wallets active in the past 30 days fell to 26-month lows,” the crypto intelligence firm Santiment noted.

The price of Ether percent rose 15 percent at $2,525 over the past 24 hours, after having touched a nine-month low on Monday.

The crash resulted in the liquidation of Bitcoin, Ether and other crypto asset positions worth more than $1 billion yesterday, data from Coinglass shows.

Prime buying opportunity or the time to remain on the sidelines following the crash?

“The last time the market melted down like this was March 12, 2020. That was the day the world realized that Covid was a big deal… Among all assets, bitcoin crashed the worst, falling 37% from $7,911 to $4,971… In retrospect, March 12, 2020, wasn’t a time to panic. It was the best buying opportunity for bitcoin in a decade,” Matt Hougan, the Chief Investment Officer of Bitwise said in his weekly note.

The crypto intelligence firm 10xResearch disagrees and advises caution, recommending investors to remain sidelined for now: “Risk management is crucial during such periods to protect trading capital. August and September are notorious for slow trading. Many institutional players are on vacation, and deploying large amounts of capital is the last thing on their minds… This approach distinguishes institutions from retail traders, who often chase every opportunity, while institutions carefully assess risk and reward. While buying the dip can sometimes be a sound strategy, it remains too risky now.”

Outflows from Bitcoin ETFs but inflows into the ETH ETFs

Yesterday's sell off resulted in outflows totaling $168 million from the 12 spot Bitcoin exchange traded funds (ETFs) listed in the US on Monday. However, the nine spot Ether ETFs recorded total inflows of $49 million on Monday, data from Sosovalue shows.

Meanwhile, Capula Management, Europe’s fourth-largest hedge fund, disclosed it holds $500 million in Bitcoin ETF holdings in a regulatory filing.

MicroStrategy’s Bitcoin strategy remains profitable despite the crash

“HODL” (Hold On for Dear Life) is the message of Michael Saylor, the founder and Chairman of MicroStrategy in the aftermath of the crash. The company’s unrealized gains on its Bitcoin investment has dwindled to $4.4 billion as result of the market turmoil.

MicroStrategy is the publicly listed company holding most Bitcoins, 226,331 Bitcoin or 1.08 percent of the total supply of Bitcoin. Its share price dropped by 9.6 percent to $1,309 yesterday.

France opens applications for CASP licenses

The Autorité des Marchés Financiers (AMF) is now accepting applications for a crypto asset service provider (CASP) licenses, the French regulator said. The license will be required as of the end of the year to comply with the EU’s Markets in Crypto Assets (MiCA) regulation.

Ten services, including the provision of custody and administration of crypto assets on behalf of clients, the operation of crypto trading platforms or the provision of crypto advice, will require prior authorization, AMF underlined.

DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.