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Bitcoin struggled again last week despite a brief rally early in the week and has traded mostly flat over seven days. The cryptoasset began last week above $25,700, rallying over $26,200 but has fallen back to around where it started as softness in trading volumes and confidence pervades the market. 

Ether saw large falls across the week, having begun around $1,650 before rallying to $1,670, before falling away to now trade around $1,630 - down over 1% week-on-week.

Softness in the market is reflected elsewhere in asset classes such as equities as investors pay close attention to the discussions at Jackson Hole where central bankers meet to discuss policy. 

The indication from Wyoming is that central bankers are intent on keeping rates at higher levels to prevent a resurgence in inflation - which is not being taken well by risk assets across the board. 
 

Bitcoin trading volumes at a four-year low

Data from CryptoQuant shows bitcoin trading volumes are down significantly at the moment, their lowest level in more than four years. Trading volume is a highly variable measurement in the Bitcoin market but does show us the tricky dynamic for investors right now.

There is a combination of factors driving volumes lower at the moment. Summer is partly to blame - this isn’t uncommon in equity markets either with many away from their desks. But many owners are sitting back and waiting to see where developments will shift for the world’s largest cryptoasset. 

The data would suggest long-term investors are laying in wait despite the softness of the market. The price of bitcoin while well away from all-time highs is still much more resilient now than it was a year ago. With some significant market developments likely to materialize before the end of the year, the cryptoasset shouldn’t perhaps be discounted as heavily as it is right now. 
 

Hashdex lines up Bitcoin spot ETF

Crypto asset manager Hashdex is working on its own Bitcoin spot ETF, joining the likes of BlackRock and Fidelity in preparing a spot ETF. The firm has however adopted a different approach to its product compared to the aforementioned TradFi managers in that it won’t be relying heavily on surveillance.

Hashdex’s ETF will seek to obtain bitcoin on the CME spot market instead of marking it out from potential peers in the market which has yet to really launch, and many crypto investors are watching carefully for developments. 

The firm will be adapting its existing bitcoin futures ETF to include spot bitcoin, also a novel approach that will require the firm to trade out futures contracts for spot bitcoin over time. The market is highly tentative at the moment as it waits to see if ETF approval from the various firms takes place. Any approval will likely see the market react strongly as the implications of a consumer-friendly regulated bitcoin investment product should not be underestimated. 
 

Shibarium relaunch sees 100,000 wallets passed

The relaunch of the layer 2 blockchain of Shiba Inu token - Shibarium - has seen the blockchain surpass 100,000 wallets in less than 24 hours. The price of the token responded positively to the reopening too. 

The Shibarium blockchain had gone out of action with the developer Shytoshi Kusama updating on the status. The Shibarium blockchain allows users to build dApps and conduct peer-to-peer transactions, and forms one of the newer crypto platform offerings out there, compared to more established peers such as Ethereum and Polygon.

While the crypto market has had a tentative 2023 to an extent, it is positive to see such a strong uptake of a new blockchain platform. The health of the market is ultimately driven by demand for its products and associated tokens. While prices might not reflect high investor confidence, there is cause for optimism in the sector with strong uptake of innovations.

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