According to a recent report by Copper Research, bitcoin price movement has stagnated due to global events, and ethereum’s limited supply could lead to a price surge.
The latest issue of Copper Research’s “Opening Bell” report highlights that despite bitcoin’s (btc) resilience in the face of the German government’s sale of 40,000 coins, overall market conditions have been challenging, erasing gains made since bitcoin’s all-time high in March.
The report suggests that bitcoin has little buying activity due to increased market volatility driven by a number of global events. These events include the US elections, the UK riots, tensions in the Middle East, and changes in the Japanese central bank policy.
Initially, market participants bought the dip during the German sell-off, but the report claims that recent market volatility has reduced interest in risk assets, resulting in minimal bitcoin buying activity.
Given the unexpected supply from Germany, markets are effectively showing no net additions. Since bitcoin's peak in March, ETFs have only added 40,000 coins, and prices are currently trading within the same range seen during the German sell-off, the report said.
ethereum's surge at the end of the year
ethereum (eth) supply dynamics are also under scrutiny, as layer-2 adoption has returned the asset to an inflationary state since mid-April. However, a significant portion of eth is locked in smart contracts.
This limited supply could potentially reduce circulating supply and create upward pressure on prices towards the end of the year.
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As of August 12, 66% of ethereum addresses were in profit and the price of eth was trading just above $2,600. This is up from last week, when only 63% were in profit.
However, this is still down from the 75% gain when eth was above $3,159 at the start of the month, with 3.59 million addresses needing a price increase between $2,679 and $2,755 to become profitable.
Rise of tokenized assets
The report also noted that tokenized assets are experiencing remarkable growth, with blockchains adding over $1 billion worth of tokenized government products this year.
McKinsey recently projected that the market value of real-world tokenized assets could reach as much as $4 trillion by 2030, driven by factors such as mutual funds and bonds.
BlackRock’s BUIDL product has contributed to more than half of this increase, indicating strong market momentum. Other products, such as Franklin Templeton’s BENJI 0.6 and Ondo Finance’s USDY and USDG, are also gaining significant ground.
