Bitcoin and the broader cryptocurrency market experienced significant losses this week following the release of U.S. Consumer Price Index (CPI) data.
There is also speculation that BlackRock will launch its own blockchain. Furthermore, when Binance delisted several altcoins, the market reaction changed significantly.
Bitcoin ‘Fake’ After CPI Data Release
On August 14, the U.S. Bureau of Labor Statistics (BLS) released July Consumer Price Index (CPI) data. The number was lower than last month, sparking speculation that the Federal Reserve may cut interest rates by 25 basis points in September.
Bitcoin initially reacted positively to the data, trading above $60,000. However, the price soon reversed course and fell below $60,000, which the trading community called a “false exit.” As of this writing, Bitcoin is down 1.95% in the past 24 hours to $58,345.
Despite this volatility, analysts maintain a positive long-term outlook for Bitcoin. Potential catalysts for the bullish trend include lower interest rates, increased inflows into Bitcoin exchange-traded products (ETPs), and favorable regulatory developments.
Institutional Investors and Wall Street Giants Reveal Spot Crypto ETF Holdings
This week, institutional investors disclosed positions in Bitcoin and Ethereum ETFs in 13-F filings with the U.S. Securities and Exchange Commission (SEC). For example, Goldman Sachs holds 7 of the 11 Bitcoin spot ETFs traded in the United States. The largest holding is iShares Bitcoin Trust (IBIT), with an investment worth approximately $238.6 million.
In addition to IBIT, Goldman Sachs also invests heavily in other Bitcoin ETFs. In particular, it holds the Fidelity Bitcoin ETF (FBTC) worth $79.5 million and the Invesco Galaxy Bitcoin ETF (BTCO) worth $56.1 million.
Similarly, another large Wall Street bank, Morgan Stanley, appears to be bullish on BlackRock’s IBIT, holding a position worth $188 million. Morgan Stanley also holds small stakes in the Ark 21Shares Bitcoin ETF (ARKB) and Grayscale Bitcoin Trust (GBTC).
Cardano Prepares for Windows Hard Fork with Hydra Update
On August 9, Cardano released version 0.18.0 of the Hydra Head extension solution. This upgrade is especially important as Cardano is preparing for the Chang hard fork, which aims to fully decentralize the blockchain.
Cardano developer Sebastian Nagel highlighted that one of the key features of this update is the ability to withdraw funds without closing the open header. These improvements are in line with Cardano’s broader goals of transitioning to a decentralized network. Cardano founder Charles Hoskinson envisioned it as a global system with advanced governance and community-led measures.
