Newsletter Volume 36
Article 1 — The Market This Week
Welcome to the weekly crypto market update. In this report, we will provide you with the latest news and analysis on the cryptocurrency markets, including Bitcoin, Ethereum, and other major altcoins. We will discuss the current market trends, price movements, and other factors affecting the crypto market. Stay tuned to stay up-to-date on the latest developments in the exciting world of cryptocurrencies.
The price of Bitcoin reached a new yearly high at $31,804, raising questions about the reasons behind the bullish trend. One contributing factor was the release of the US Producer Price Index (PPI) data, which showed a significant slowdown in inflation. The PPI YoY dropped to 0.1% in June, surpassing expectations and marking the smallest pace since August 2020. This decrease in inflation is seen as positive for the Consumer Price Index (CPI) and suggests a more stable economic environment. A macro researcher noted that the PPI’s impact on the CPI is crucial and criticized the Federal Reserve for relying too much on backward-looking data.
XRP has surged in market capitalization, surpassing BNB to become the fourth-largest cryptocurrency. The rise is attributed to Ripple Lab’s partial legal victory against the SEC. While the court ruled that XRP is not an investment contract, it also found Ripple in violation of securities laws due to direct sales of XRP. This has raised questions about the legality of XRP’s offering. Despite this, the perpetual futures market remains bullish, indicating positive sentiment among traders. The ruling has opened doors for XRP relisting on centralized exchanges, and institutional investors who purchased directly from Ripple may face potential class-action litigation. The situation is worth monitoring as it unfolds.
Celsius Network, a bankrupt crypto lender, has received court permission to sell its altcoin holdings for Bitcoin and Ethereum. They have transferred $64 million in cryptocurrencies, including Chainlink, Polygon, AAVE, and SNX, to a new wallet. This decision could have a significant impact on the market for smaller tokens. Meanwhile, the former CEO of Celsius, Alex Mashinsky, has been arrested on various fraud charges by the Department of Justice.
BNB and SOL tokens surged by up to 10% in the past 24 hours, outperforming other major cryptocurrencies. BNB reversed its weekly losses after Binance announced a token sale for its analytics tool, while SOL’s rise was attributed to the growth of the Solana-based DeFi ecosystem. Mantle Network is considering a $200 million ecosystem fund, and Bitcoin remains stable above $30,000 despite limited market growth.
KEY METRICS
Total Crypto Market Cap : $1.30T
Bitcoin Market Cap : $608.05B
Ethereum Market Cap : $241.05B
ETH/BTC Ratio : 0.06
Ethereum Gas Price : 23 gwei
DeFi TVL : $78.34B
Fear and Greed Index : 60 (Greed)
Federal Reserve Balance Sheet : $8.29T
Article 2 — Weekly Spotlight on IC15
The global cryptocurrency market slipped despite better US inflation data. The IC15 Index was down by 98 points to 40,439 at 4 pm on Thursday. The major losers in the Index were Cardano, BNB, Bitcoin, and Ethereum in the 0–2% range, while gainers Polygon, Litecoin, Chainlink, and Uniswap in the 0–5% range.
The EU market regulator issued a consultation paper on the Markets in Crypto Assets (MiCA) law on how crypto firms in the EU region should be authorized, handle complaints, and manage and prevent conflict of interest. The US lawmakers reintroduce the Responsible Financial Innovation Act to form a comprehensive crypto regulation and clarify the roles of the SEC and the CFTC in regulating the crypto industry with consumer protection.
The US Government Accountability Office (GAO) explores blockchain potential uses in Small Business Administration (SBA) programs to help entrepreneurs and small businesses to facilitate safe loans, improve annual reporting, and monitor business development. South Korea requires domestic firms to disclose crypto holdings from January 2024.
Bank for International Settlements (BIS) survey revealed that around 15 retail CBDCs could be in circulation by the end of 2030 and nine wholesale CBDCs within the next six years. BIS is also working on CBDC security as they launched a 7-step framework called Polaris for CBDC security to help central banks to keep CBDCs secure.
Russian businesses are exploring Digital Financial Assets (DFA) to raise capital as the Moscow Stock Exchange eyes to launch its own DFA services by the year-end. Ripple Labs is launching an initiative that will enable users to tokenize real estate assets and use them as collateral for loans.
Article 3 — The Battle of Bulls and Bears
In recent news, the Ripple CTO has issued a warning to investors regarding XRP scams amidst the recent surge in its price. A court ruling declared that XRP is not a security, resulting in a significant price jump of over 70% in a single day, marking the largest increase in a year. However, the CTO advises caution amid the hype surrounding XRP.
The court ruling in the SEC’s case against Ripple stated that while XRP is not a security in certain contexts, it qualifies as a security when sold to institutional investors. This ruling has been ongoing since 2020 and has generated mixed reactions within the crypto community. Ripple and its supporters consider it a partial victory, while others remain skeptical.
The ruling had a positive impact on the cryptocurrency market, causing a surge in prices. Ethereum, the second-largest cryptocurrency, surpassed the $2,000 mark for the first time in over two months, with a 5% increase in the past 24 hours and a 14% gain in the last month. Other altcoins such as Solana, Polygon, and Cardano also experienced double-digit gains. XRP itself saw a significant increase of 62%. Bitcoin, the leading cryptocurrency, had a more modest increase of about 2%.
The surge in XRP’s price had a ripple effect on the market, leading to increased optimism and renewed momentum in the cryptocurrency space. Ethereum, in particular, experienced a notable price increase, breaking through key resistance levels and trading above $1,980 and the 100-hourly Simple Moving Average. The cryptocurrency is expected to continue its upward trajectory, with potential resistance levels at $2,050 and $2,120.
Bitcoin also reached a new yearly high of $31,804, driven by favorable United States Producer Price Index data indicating a slowdown in inflation. This positive development eased concerns about inflation and contributed to the increase in Bitcoin’s price. The cryptocurrency broke through key resistance levels and traders are closely monitoring its performance to gauge if it can sustain its upward momentum and breach the crucial $32,000 mark.
Overall, the recent court ruling regarding XRP, along with the subsequent price surge, has sparked excitement in the cryptocurrency market. However, caution is advised, as the Ripple CTO warns investors about potential scams associated with XRP amidst the hype.
Article 4 — Weekly Spotlight
The recent surge in the price of Bitcoin and XRP has drawn attention to the reasons behind the bullish trend in the cryptocurrency market. The release of positive US Producer Price Index (PPI) data, indicating a slowdown in inflation, has contributed to Bitcoin’s rise. Meanwhile, XRP’s market capitalization has increased due to Ripple Labs’ partial legal victory against the SEC. However, questions remain regarding the legality of XRP’s offering and the potential impact on institutional investors.
Celsius Network, a bankrupt crypto lender, has received court permission to sell its altcoin holdings for Bitcoin and Ethereum, which could affect the market for smaller tokens. BNB and SOL tokens have also experienced significant surges, driven by various factors such as Binance’s token sale announcement and the growth of the Solana-based DeFi ecosystem. Despite these positive developments, the global cryptocurrency market slipped, and the EU and US governments are working on regulatory frameworks for the crypto industry.
Additionally, the Bank for International Settlements (BIS) is exploring the potential of Central Bank Digital Currencies (CBDCs), while Russian businesses are considering Digital Financial Assets (DFA) for fundraising purposes. Finally, the recent court ruling on XRP’s status as a security has generated mixed reactions, with Ripple and its supporters considering it a partial victory. The ruling has had a positive impact on the overall cryptocurrency market, with Ethereum experiencing a notable price increase. However, caution is advised, as the Ripple CTO warns investors about potential scams associated with XRP amid the price surge.
