Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro, says: Bitcoin shows modest gains as markets await rate decisions
Bitcoin showed signs of modest gains last week as it rose around 3.25% over the course of seven days. The cryptoasset began last week around $25,400 and saw a dip to sub $24,800 levels before rallying over the rest of the week. It is now trading around $26,350 on eToro.
Ether saw gains too last week albeit more modestly still, beginning last week below $1,600 before falling to around $1,525. It has since recovered and is now trading just above $1,610 around a 1% gain over seven days.
Markets could move nervously in the next few days as we await major data prints from the UK and US, with both countries’ central banks due to announce new rate decisions later this week.
Despite inflation falling in both economies, signs are there that this retreat might not be fully felt yet. Like other risk assets cryptoassets are sensitive to rate expectations so any hardening in tone could leave investor sentiment bearish.
Bitcoin surpasses Visa transaction volumes
The annual transaction volume on the bitcoin network has surpassed Visa for the first time, a major milestone for the cryptoasset, according to Reflexivity Research.
Bitcoin is typically thought of first and foremost with the price of the token in mind. But the cryptoasset still functions as a decentralised financial payments network. It competes with the likes of Visa, Mastercard and even state-backed entities such as the US Automated Clearing House (ACH) and Fedwire for transaction volumes.
It has now surpassed Visa for transactions which is no small achievement given the global reach of the payments network. This doesn’t confer directly onto price because users are not necessarily buying and holding, rather they are using bitcoin as a service in order to transfer funds between parties.
Bitcoin’s annual transaction volume has increased steadily for over a decade. If it continues on its current trajectory it could likely begin to compete with top echelon government-backed settlement systems in the next few years.
Sony to launch Web3 blockchain
Major gaming and electronics developer Sony has announced it is launching its own blockchain in partnership with Startale Labs.
The firm says it intends to focus on Web3 use cases. With a presence in music, gaming, imaging and other consumer electronics, the firm is well-placed to take advantage of innovations in the sector, which has suffered setbacks in the past 18 months after rising to prominence.
Details of the overall aims of the project are still few however, but the firm seems well-placed to build upon Web3 developments to produce innovative ideas. Startale for its part has already helped to create blockchains with partners in the past. The two firms began collaborating in May. Sony has already launched various Web3 related patents too.
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18.09.2023 / Editor, Andreea Dragan
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