Not even bitcoin is immune to the Delta variant, 'cryptos' remain negative

The cryptocurrency market remains in the red this Friday, after a new wave of sales that this Thursday made bitcoin lose its short-term support at $ 34,000. After marking a July low of $ 32,500, the creation of Satoshi Nakamoto tries to consolidate around $ 33,000, but everything suggests that it will end up touching $30,000, the lower part of the range in which the digital asset has been moving in the last weeks.

Ethereum has also suffered notable losses, losing 10% on the day of July 8. All in all, it remains around $ 2,100. Total capitalization sits below $ 1.4 trillion.

"The crypto market has not been immune to declining investor sentiment," says Naeem Aslam, head of analytics at AvaTrade. "The price of bitcoin fell because investors began to reduce their exposure to risky assets as uncertainty about future prospects increased," he continues. And at a time when stock traders are shifting their focus to safer assets, such as Treasuries, "risky assets are notorious for being extremely volatile," so they are not a dish of good taste in the current context.

That said, "institutional investors continue to show a greater interest in digital currencies and it is very likely that they will take advantage of this opportunity to acquire digital assets at a discount," warns the expert. In fact, Bank of America is the latest financial institution to enter this space, with plans to begin investigating cryptocurrencies. Likewise, Goldman Sachs announced in May that it would open a cryptocurrency trading desk and offer bitcoin derivatives.

However, there is a lack of a "real catalyst or events that moves the market at the moment", indicates QCP Capital, according to CoinDesk. "We expect volatility to remain under pressure until mid to late August."

"In bitcoin, we have seen some funds speculate that the lack of narrative combined with lower levels of liquidity on exchanges may lead to a burst in prices if there is a positive headline," wrote Chris Dick of cryptocurrency trading firm B2C2.

Several important events settle down the road. On the one hand, the unlocking of the shares of the Grayscale Bitcoin Trust in the coming days, which many analysts consider will have an impact on the price, although many others are suspicious that it will offer a positive boost. On the other hand, ether - the native unit of the Ethereum network - awaits the update of its London protocol, scheduled for August 4. Two milestones with the potential to liven up the crypto market this summer.

Translated by Caoimhe Toman