Fallout From Crypto Contagion Is Easing, But No Market Reversal Yet

With some areas of the blockchain space showing signs of a potential bottom, July showed the market remains in a cautious state .

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The blockchain industry showed surprising resilience in July, which could point to a period of greater fundamental support for the crypto space as a whole in the near term. Looking at a wide variety of indicators, including Bitcoin (BTC) price action, open interest on Ether (ETH), and activity in GameFi, there are strong signals suggesting that bullish sentiment returns to this space.

Smooth navigation from now on is not a given though. The latest Investor Insights from Cointelegraph Research analyzes key indicators from different sectors of the blockchain industry to navigate these potentially dangerous crypto waters. In the latest edition, Cointelegraph Research's bearish-to-bullish index was a C level indicating a time of short-term caution. Although there are still mixed signals, the overall sentiment was leaning towards bulls for July.

Download and purchase this report from the Cointelegraph Research Terminal.

Bitcoin and Ether show signs of strength

Bitcoin closed July up 16.6% month-to-date, a gain not seen since October 2021. BTC continues to range with a resistance level around $24,000; however, the repeated approach and rejection is likely to break down at some point if factors change, such as positive economic growth reports in the US and elsewhere. At the same time, Ethereum saw a record number of unique active wallet addresses, 48% more than previous records. Both indicators are bullish for the blockchain space.

GameFi shows signs of life

The GameFi sector has been in decline since the great stock market crash of the first half of 2022. However, July saw a 4.7% jump in...