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After leading the market to rally over the past month, Bitcoin (BTC) and Ethereum (ETH) saw slight price declines as investors wanted crypto-currencies’ next price move. However, despite the slowdown in dynamics, crypto traders express bullish in both large-cap assets.

In particular, Bitcoin was trading at $22,927 and registering a weighted sentiment of 0.25 while Ethereum, worth $1,587, registered a weighted sentiment of 0.32, Data published on August 2 by the crypto analysis platform Saniment noted.

Sentiment weighted Bitcoin and Ethereum. Source: Santiment

The data emerged after the two assets posted an impressive July, up 18% on average. Based on market sentiment, it can be interpreted that Bitcoin and Ethereum did not experience fear, uncertainty and doubt, with investors choosing to buy in the dip.

Ethereum Merger Upgrade Boosts Optimism

Notably, Ethereum optimism emerged amid the latest update on the Merge upgrade that will see the transition of the proof-of-work blockchain (PoW) proof-of-stake (PoS) protocol. The update is seen as bullish for the second-tier crypto.

In general, since the update, the development of the Ethereum network has passed various stages. As reported by Finbold, Ethereum’s open interest reversed that of Bitcoin for the first time on August 1.

Interestingly, high gas fees on the Ethereum network have been a significant issue for users of the platform. However, the latest data from the cryptanalytics platform glass knot noted Ethereum Gas fell to 17.5 Gwei, the lowest level since May 2020, while EIP1559’s asset burn rate hit an all-time low.

Ethereum gas fee chart. Source: Glassnode

Bitcoin rallies amid Fed policy

Elsewhere, Bitcoin rebounded in July after the Federal Reserve raised its interest rate by 75 basis points. Bitcoin is considered to have reacted well to the latest Fed policy as the asset is trading in a highly inflationary environment.

With the possibility of future rate increasesit looks like investors are betting on the asset to continue rallying.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.





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