Global volatility slows Bitcoin, but Ethereum could surge: report

According to the latest report from Copper Research, Bitcoin’s price action has been stagnant due to global events and Ethereum’s limited supply could lead to a surge in prices.

Despite Bitcoin’s (BTC) resistance to the German government’s 40,000-unit sale, overall market conditions remain challenging and Bitcoin’s gains since its all-time high in March have been erased, according to the latest edition of Copper Research’s “Opening Bell” report.

The report suggests that Bitcoin has seen little buying activity due to increased market volatility driven by a series of global events, including the US elections, UK riots, Middle East tensions, and changes in Japanese central bank policy.

Market participants initially bought the dip during the sell-off in Germany, but the report claims that recent market volatility has reduced interest in riskier assets and, as a result, buying activity for Bitcoin has been minimal.

Considering the unexpected supply from Germany, markets are effectively showing no clear additions. Since Bitcoin’s peak in March, ETFs have added only 40,000 coins, according to the report, and prices are currently trading in the same range observed during the sell-off in Germany.

Ethereum’s year-end rally

The supply dynamics of Ethereum (ETH) are also under scrutiny, as Layer-2 adoption has sent the asset into an inflationary state since mid-April. However, a significant portion of ETH is locked up in smart contracts.

This limited supply is likely to reduce the circulating supply and create upward price pressure towards the end of the year.

Source: Copper Research

As of August 12, 66% of Ethereum addresses are in the money, with ETH trading just above $2,600. This is an increase from last week, when only 63% were in the money.

However, this is still down from the 75% profit achieved when ETH was above $3,159 earlier in the month, as 3.59 million addresses need a price increase between $2,679 and $2,755 to become profitable.

Increase in tokenized assets

The report also noted that tokenized assets are experiencing significant growth, with blockchains adding more than $1 billion in value to tokenized government products this year.

McKinsey recently predicted that the market value of tokenized real-world assets could reach $4 trillion by 2030, driven by factors such as mutual funds and bonds.

BlackRock’s BUIDL contributed more than half of this increase, signaling strong market momentum. Other products such as Franklin Templeton’s BENJI 0.6 and Ondo Finance’s USDY and USDG are also gaining significant momentum.