Market Overview (15 July - 21 July)
1/ Prices are on the rise after recent periods of stabilization.
2/ Last week, the SEC discontinued multiple ongoing cryptocurrency investigations.
3/ The Republican Party has adopted a preliminary proposal supporting cryptocurrencies in preparation for its National Convention this week.
4/ Applications for spot Ethereum ETFs are nearing approval by the SEC.
Bitcoin
This week, Bitcoin stabilized, climbing from lows of US$60,647 to highs of US$68,752, boosted by market optimism following an assassination attempt on pro-crypto former President Donald Trump at a Pennsylvania rally. The market surged over 6% post-incident. Meanwhile, sell-off pressures eased as the German Government completed its Bitcoin sales and despite ongoing payouts from the Mt. Gox bankruptcy, Bitcoin’s price has remained resilient. This resilience comes amidst a drop in mining difficulty and numerous sales at a loss, suggesting a potential price bottom. Key upcoming events include the Bitcoin Conference in Nashville from July 25 to July 27, 2024, featuring speakers like Trump and Robert F. Kennedy Jr. Macroeconomic indicators like the lower-than-expected U.S. CPI and unemployment claims also hint at possible easing, with a Fed rate cut in September appearing more likely, which could influence Bitcoin’s price further. Currently, Bitcoin is trading at US$64,655, marking an over 14% increase this week.
Ethereum
Ethereum experienced a strong week, surging over 18% from a low of US$3,242 to surpass the critical level of US$3,562. The uptrend was further bolstered by comments from Rostin Benham, chair of the U.S. Commodities and Futures Trading Commission (CFTC), who reaffirmed Ethereum as a commodity in a recent Federal Court ruling. Although the ruling isn’t binding, it could impact future determinations on whether cryptocurrencies are classified as securities or commodities. In addition, asset managers, including VanEck, Grayscale, and Franklin Templeton, made amendments to their Ethereum ETF filings with the SEC, anticipating further submissions before potential approval of spot Ethereum ETFs. Ethereum closed the week trading at US$3,490, marking a rise of over 15%.
Altcoins
This week, market sectors rebounded, led by a surge in positive sentiment. The Bitcoin Ecosystem topped the growth chart with a 31.3% increase, followed by decentralized physical infrastructure (DePIN), artificial intelligence (AI), and real-world assets (RWA), which expanded by 28.5%, 24.5% and 21.3%, respectively. Centralized exchanges saw the least growth at 6.2%. The notable rise in core sectors such as the Bitcoin network, DePIN, and RWA indicates that the recent upward price momentum following weeks of consolidation is fostering growth in sectors that have direct real-world applications.
Regulatory
1/The US House of Representatives could not override President Joe Biden’s veto of SAB 121, falling short with only 228 votes against the required 290 supermajority.
2/The SEC concluded its three-year investigation into Hiro Systems, a company creating tools for layer two blockchain apps, without recommending any enforcement action.
3/Investigations into Binance USD and Paxos were also dropped, previously highlighted by the SEC’s concerns over the classification of Binance USD as a security, reflecting ongoing uncertainties in crypto regulation.
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