Mini Program: Daily Cryptocurrency Dynamics Summary
1. Yellen said she did not provide guidance to the US SEC and CFTC on cryptocurrency regulation
Fox Business Channel reporter Eleanor Terrett tweeted that U.S. Treasury Secretary Yellen testified before the U.S. House Financial Services Committee that she did not provide guidance or coordination to the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) on cryptocurrency regulation.
2. CryptoQuant CEO: Bitcoin miners’ capitulation continues, and the crypto market is expected to be relatively flat in the next 2-3 months
According to CryptoQuant CEO Ki Young Ju on Twitter, Bitcoin miners' capitulation is still continuing. Historically, the capitulation period ends when the daily average mining value reaches 40% of the annual average, and the current ratio is 72%. It is expected that the crypto market will be relatively flat in the next 2-3 months, and it is recommended to be bullish in the long term but avoid excessive risks.
3. Nigerian Finance Minister urges country's regulators to address cryptocurrency regulatory challenges
According to Bitcoin.com, Nigerian Finance Minister Wale Edun urged the newly formed board of directors of the country's Securities and Exchange Commission (SEC) to address the complex challenges of regulating cryptocurrencies. He stressed that strict supervision is needed to maintain the integrity of the capital market. Edun also stressed the importance of staying informed and adaptable, especially in rapidly developing fields such as artificial intelligence, digital currencies, and overall digital transformation. In addition, the Nigerian SEC board also expressed optimism about the country's economic prospects.
4. BlackRock and Invesco Galaxy submit Ethereum spot ETF securities registration application to the US SEC
Public documents show that BlackRock and Invesco Galaxy have submitted an Ethereum spot ETF securities registration application (Form 8-A12B) to the U.S. SEC. The submission of the Form 8-A document means that the issuer can trade on the exchange once the product is approved, and it also marks progress in the potential approval of the Ethereum spot ETF.
5. Bloomberg: Excess supply has weakened the correlation between Bitcoin and US technology stocks
After trading almost in sync in recent months, Bitcoin's correlation with the surge in U.S. stocks is collapsing due to an oversupply of cryptocurrencies and a lack of demand, according to Bloomberg. On Tuesday, the 90-day correlation coefficient between Bitcoin and the tech-dominated Nasdaq 100 fell to 0.21, the lowest since early May. The coefficient has fallen by more than 50% in two months. A coefficient of 1 means that the assets move perfectly in sync, while a coefficient of -1 indicates that they move in opposite directions. "Bitcoin is being weighed down by unique supply events, including spot sales of seized coins held by the German and U.S. governments and the distribution of Mt. Gox assets," said Joshua Lim, co-founder of trading firm Arbelos Markets. "This has limited Bitcoin's upside even as other risk assets are trading at record highs." "Excess token supply is expected to enter centralized exchanges in the coming days, which is likely to put pressure on prices," said Manuel Villegas, a next-generation research analyst at Julius Baer. "The upcoming oversupply has been a major factor affecting market confidence," said Manuel Villegas, a next-generation research analyst at Julius Baer. In addition, Bitcoin miners are still bearing the financial blow from the so-called "halving" in April. “When prices fall, Bitcoin miners run into problems because their cost base is in fiat; we estimate the average overall cost of production for a Bitcoin miner to be close to $54,500,” Villegas said. “When prices fall significantly below this threshold, miners may need to liquidate a portion of their token inventory to cover their fiat-based costs.”
6. QCP Capital: There are some bullish signs in the current crypto market, and there is speculative selling pressure in the short term
QCP Capital, a Singapore-based crypto investment firm, said that Bitcoin prices fell to $55,200 during early U.S. trading on Monday after German police transferred $900 million worth of Bitcoin to an exchange. The market was initially spooked but quickly rebounded. We saw some signs of a bull market for the following reasons: 1. The exchange later returned $200 million worth of Bitcoin to the German police, indicating that the assets did not enter the market. 2. Rapid dip buying showed strong demand, with exchange-traded funds (ETFs) inflows of $295 million on July 8, the highest level in 21 days, supporting this. 3. Despite the lack of liquidity, Bitcoin and Ethereum have hit higher lows this week, and dip buying has been very active. QCP Capital noted: "The market reacted strongly to supply moves, indicating speculative selling pressure rather than actual spot demand. This may indicate that the market is overly bearish. A catalyst is needed. The Ethereum spot ETF is expected to start trading around July 15. If it can get a positive response, it may increase liquidity and may surprise the market with an upward trend. It is recommended to deploy out-of-the-money return call options (OTM ERKOs) in anticipation of a breakthrough with minimal cash outlay and zero downside risk."
7. Forbes: Argentina has the highest cryptocurrency adoption rate in the Western Hemisphere
According to Forbes, Argentina has the highest cryptocurrency adoption rate in the Western Hemisphere due to its 276% inflation rate, but the percentage of people using trusted exchanges is low. In order to cope with the depreciating peso, Argentines usually buy and hold the stablecoin Tether (USDT). Although cryptocurrencies provide them with a new way to obtain US dollars, the lack of regulation and security remains a major risk. The new president, Javier Milley, has expressed support for a competitive currency system and a gradual dollarization of Argentina, but cryptocurrency users still need to find safe ways to use it on their own.
8. Binance CEO: I expect more innovation and use cases in the crypto industry in the coming year, and clearer regulation
Richard Teng, CEO of Binance, said on X Platform: “My personal expectations for the next 12 months include: new use cases and continued innovation, improved user experience and retail adoption, institutionalization and mainstreaming of cryptocurrencies, greater development and clarity on regulation, and more to come! We are still in the early stages.”
9. K33 Research analyst: Q3 is usually the period with the weakest returns for Bitcoin
Vetle Lunde, senior analyst at K33 Research, noted on Tuesday that seasonal trends are not helping Bitcoin, with the third quarter typically the weakest period for returns. He added that seasonal weakness coincides with the pressure on prices from the sale of seized assets by the German state of Saxony and the ongoing Mt.Gox repayment distribution. According to K33 Research's estimates, the market will absorb the sale of 75,000 to 118,000 BTC from Saxony and Mt.Gox customers throughout the summer, worth $4.3 billion to $6.8 billion at current prices. Lunde said, "We expect these flows to weigh on Bitcoin performance in the coming months, and market volatility will continue until October."
10. Data: Bitcoin miners’ reserves have decreased by about 20,000 BTC since June
Vincent Maliepaard, marketing director of IntoTheBlock, disclosed data that since June, the reserves of Bitcoin miners have decreased by about 20,000 BTC. The Bitcoin halving two months ago may be a driving factor for the recent miners' selling, as profit margins have been declining since then. CJ Burnett, chief revenue officer of Compass Mining, said that large mining companies are still actively purchasing the latest generation of mining machines to improve mining machine efficiency, economies of scale, and gross profit margins.
11. Coinbase executives: Popularization of cryptocurrency requires more friendly beginner applications
Chintan Turakhia, senior director of engineering at Coinbase, said that to attract the first billion cryptocurrency users, more friendly beginner applications are needed. The current user registration process is complicated and has many obstacles, including setting up wallets, paying transaction fees, and purchasing blockchain native tokens. To simplify this process, Coinbase launched the Smart Wallet, which uses simpler login options such as account names and passwords to replace complex seed phrases. In addition, the new Smart Wallet also sponsors transaction fees by Coinbase, further lowering the threshold for use. Turakhia believes that consumer applications will be the way to popularize cryptocurrency, such as the Telegram-based mini-game Hamster Kombat, whose number of users exceeded 239 million in 81 days.
Article forwarded from: Jinshi Data
