Investors are accumulating stablecoins such as Tether USDT, USDC, BUSD, and DAI as Bitcoin and Ethereum struggle to surpass their psychological barriers. BTC has been unable to break the $31,000 mark, while ETH is facing challenges maintaining the $2,000 level. Traders are finding comfort in their stablecoin positions amidst the volatile crypto market. Despite this, data from Coinglass suggests that traders remain optimistic and are betting on a potential price rise for BTC and ETH.

The writer's opinion presented in the following information should not be taken as financial, investment, trading, or any other type of advice. AAVE's price action has fallen to a crucial demand zone, but the futures market sentiment remains bearish. Most altcoins have been exposed to bears' wrath due to the uncertainty surrounding Bitcoin.

Bitcoin broke out of its sideways trading pattern, but not in a positive way for investors. The cryptocurrency dropped below $29,000, reaching its lowest price in a month and a half, resulting in almost $100 million in liquidations. This volatility has negatively impacted over-leveraged traders, with long positions being responsible for the majority of the liquidations. Altcoins, including Dogecoin, Solana, Litecoin, Bitcoin Cash, Avalanche, Polygon, and Stellar, have also suffered declines of 3-5% in a day.

Ethereum has achieved a significant milestone by entering the top 50 global assets based on market capitalization, with a current value of $223 billion, surpassing palladium and trailing platinum by only $17 billion. Bitcoin also retains a strong position as the 12th largest global asset by market capitalization, valued at around $570 billion.

Bitcoin and Ether remained stable on Tuesday, holding at support prices despite concerns over the hack of decentralized finance platform Curve Finance, which resulted in the theft of an estimated $41 million. The hack has been linked to a flaw in the programming language Vyper. Tron and Solana were among the top 10 losers, while Litecoin gave up some gains ahead of its halving event on Wednesday.

Galaxy Investment Partners CEO Mike Novogratz believes that Worldcoin, an artificial intelligence-based altcoin created by Sam Altman, has bullish potential due to the current hype surrounding AI. Novogratz predicts that the price of Worldcoin, which uses iris-scanning technology, could rise significantly.

Institutional investors are showing increasing interest in cryptocurrency and investing in it, but some are concerned that this could lead to Bitcoin losing its anti-establishment roots. BlackRock, a major asset manager, recently applied for a Bitcoin exchange-traded fund, causing the price of Bitcoin to rise. While cypherpunks originally created Bitcoin to avoid government surveillance, institutional investors are focused on making money, which could lead to stricter regulations and a loss of privacy in the crypto space.

Although smart contracts have transformed the potential of blockchain and cryptocurrency, they are not a perfect solution for widespread adoption. It is outdated to assume that new technology is flawless, and this can create an adversarial relationship with regulators. Mainstream adoption of smart contracts is hindered by a lack of Bitcoin support and the difficulty of connecting crypto and fiat through a smart contract framework. Smart contracts need to be altered to maximize security and privacy, and viewed as a "proof-of-concept" rather than the key to universal adoption. To ensure the future of crypto, there needs to be a consistent dialogue with traditional finance and a prioritization of development to address obstacles preventing fiat interoperability and ease of access.

Bitcoin NFT inscriptions saw a significant increase in July, but sales volumes in terms of dollar value decreased due to lower demand. Despite setting a new daily record with over 422,000 inscriptions on July 30, sales volumes for Bitcoin NFTs are expected to be almost 50% lower than the previous month. Ordinals, which allow for the creation of NFTs on Bitcoin, were launched in January. The trading volume for Bitcoin Ordinals in July is expected to be around $65 million, a 50% decrease from June. The increase in inscriptions in July may be attributed to Luminex releasing a modified BRC-20 standard that reduces fees associated with inscriptions.

Democratic U.S. presidential candidate Robert F. Kennedy has again defended bitcoin, backing arguments that the environmental impact of the world's largest cryptocurrency is not as dangerous as it has been reported. He commented on a recent Twitter thread from Sangha Systems director Daniel Feldman describing a “symbiotic relationship” between bitcoin mining and renewable energy, calling it an “interesting argument.” At the very least, environmental concerns should not be used as a smokescreen to limit freedom of trade, he added. Feldman emphasized that, contrary to media reports, bitcoin mining is “the solution to improving the grid and reducing dependence on fossil fuels.”