Bitcoin Price: Crypto Week At A Glance: Bitcoin Gets Institutional Attention; The ether continues to shine

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Bitcoin saw some interesting developments in August in terms of institutional demand. MicroStrategy bought an additional 3,907 Bitcoins for approximately $ 177 million in cash at an average price of $ 45,294 per Bitcoin, bringing its total holding to 108,992 BTC.

Goldentree, a $ 45 billion asset manager, has decided to add Bitcoin to its balance sheets. According to documents filed with the SEC, Morgan Stanley and Bill Miller’s fund bought $ 240 million and $ 45 million of Grayscale Bitcoin Trust shares, respectively. It is safe to say that institutions have started slowly increasing their exposure to Bitcoin.

China’s crackdown on Bitcoin had led to mass panic and many people considered Bitcoin to be dead as the hashrate had dropped significantly. However, it made a significant recovery as the miners fled to North America and countries neighboring China. It is now approaching June levels and with the current trend it is likely that the hashrate could hit an all-time high.

Drawing inspiration from El Salvador, the Caribbean nation of Cuba decided to regulate and recognize cryptocurrencies for payments on the island.

The rationale for this decision could be attributed to the difficulty of sending and using US dollars on the island, in part because of the tight embargo rules imposed by the United States.

August has been one of the most important months for Ethereum. On August 5, EIP-1559 was deployed as part of the London hard fork. EIP-1559 has divided the fee structure into two parts: base fee and tips.

The Base Fee is the algorithmically determined price you pay for an Ethereum transaction in the Ether, which will be burnt / destroyed or taken out of circulation. Tips are defined as an optional fee that you can include to speed up transactions.

Prior to this Ethereum Improvement Proposal (EIP), Ethereum tokenomics was completely inflationary in nature with no fixed offer. Simply put, Ethereum had an unlimited supply with 2 ethers going into circulation as a block reward.

So, it’s been almost a month since EIP-1559 went online and 1,921,117 Ether was burned (taken out of circulation) as a base charge. This equates to $ 755,852,075.

Does this mean Ethereum is now deflationary? Not yet! Since EIP-1559, 4,026,442 new Ethereums have been created or new ethers have been added to bulk rewards. That’s $ 1.58 billion, and with $ 0.75 billion of Eth burned, the rate of new ether entering circulation has declined by 47.72%.

There are, however, some Ethereum blocks where the burn is more than the rewards, making those blocks deflationary. So, it’s safe to say that EIP-1559 was a significant improvement in Ethereum’s fundamentals and tokenomics. Although it is not yet deflationary, it has a deflationary mechanism.

The supply and demand of Ethereums has also passed several important milestones. Non-zero Eth addresses have reached an all-time high. This is a massive indicator that more and more people are buying Ethereum.

The Ethereum trade balance also hit a 2-year low. This means that the bid on the exchanges has decreased, but also that the probability of a mass sale is unlikely.

The number of staked (locked up) Ethereum has hit an all-time high of 7.15 million ether and there is no sign of slowing down.

As of September 4, the number of recipient addresses also reached an all-time high. While this is great information, we may see some benefit bookings in the coming weeks.

With Bitcoin and Ethereum prices soaring as well as the strengthening of the fundamentals of the 2 big giants of the cryptocurrency market, we could potentially reach new all-time highs very soon.

5 best performing cryptos of the week:

Revain (REV) 110.75% Fantom (FTM) 105.34% Iota (MIOTA) 85.85% Solana (Sol) 46.23% Kusama (KSM) 33.68% 5 worst performing cryptos of the week: Terra (Moon) 10.26% PancakeSwap (CAKE) 6.74% Amp (AMP) 6.19% Bitcoin Gold (BTG) 5.90% Avalanche (AVAX) 4.55% (Siddharth Menon, COO, Wazir X. Les opinions are his)

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