In the market dynamics on July 23, both Bitcoin and Ethereum ushered in significant progress, which significantly affected the overall situation of the cryptocurrency market.
First, the price of Bitcoin increased significantly in a week, from $63,500 to nearly $68,000, an increase of more than 6%. This upward trend is mainly driven by market expectations for a weaker dollar, rather than solely based on uncertainty about the U.S. election. Copper's analysis report emphasizes that there is an inverse correlation between the price of Bitcoin and the U.S. Dollar Index (DXY). The weakness of the U.S. dollar often prompts investors to turn to cryptocurrencies such as Bitcoin, thus pushing up its price. This has been verified at the all-time highs of Bitcoin prices in 2017 and 2021.
Secondly, the Ethereum spot exchange-traded fund (ETF) received final approval in the United States and was officially launched on major trading platforms such as Nasdaq, New York Stock Exchange and Chicago Board Options Exchange on July 23. This event marks the further integration of cryptocurrency investment tools into the mainstream financial market. Many well-known financial institutions, such as Blackrock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy, have launched Ethereum spot ETFs. In particular, BlackRock's iShares Ethereum Trust and Grayscale's Ethereum Trust, which chose to be listed on Nasdaq and New York Stock Exchange respectively, provide investors with more investment options.
These developments not only bring new vitality to the cryptocurrency market, but also provide investors with more diversified investment opportunities.
Mt.Gox creditor repayment and Metaplanet Bitcoin purchase progress
On July 23, the creditor repayment plan for the Mt.Gox bankruptcy case made substantial progress. Mt.Gox began preparing for the repayment process through the Bitstamp cryptocurrency exchange, and the relevant address has made the first test transaction to Bitstamp's cold wallet. Blockchain intelligence company Arkham Intelligence confirmed this test transaction, showing that the Mt.Gox address transferred a small amount of Bitcoin to multiple deposit addresses of Bitstamp. This marks an important step forward in the repayment plan for the Mt.Gox bankruptcy case, and the market is paying close attention to it, especially to possible selling pressure.
Meanwhile, Japanese investment and consulting firm Metaplanet announced that it had completed its 1 billion yen Bitcoin purchase plan announced in June and purchased an additional approximately $1.2 million worth of Bitcoin. On July 22, Metaplanet purchased 20.38 BTC at an average price of 9,813,061 yen per Bitcoin, further consolidating its long-term holding strategy for Bitcoin. Currently, the total amount of Bitcoin held by Metaplanet has reached 245.99, with a total value of approximately $16.5 million. The firm implementation of this strategy has also driven a sharp rise in its stock price.
In addition, BlackRock's spot Bitcoin exchange-traded fund (iShares Bitcoin Trust, IBIT) ushered in the largest inflow day in more than four months on July 22, with a single-day net inflow of more than $523 million. IBIT purchased 7,759 bitcoins, bringing its cumulative inflow to 333,000 BTC, equivalent to approximately $22 billion. This performance made July 22 the seventh largest inflow day in the history of IBIT in terms of US dollars, showing the market's positive sentiment towards Bitcoin and investors' strong confidence.
These dynamics not only demonstrate the activity of the cryptocurrency market, but also reflect investors' continued interest and confidence in cryptocurrency assets. Whether it is Mt.Gox's creditor repayment plan, Metaplanet's Bitcoin purchase, or the inflow of funds into BlackRock's Bitcoin ETF, they all provide positive signals for the future development of the cryptocurrency market.
Harris wins Democratic presidential nomination, encryption policy may become a key issue
As the 2024 U.S. presidential election approaches, U.S. Vice President Kamala Harris has become the party's leading candidate, although she has not officially won the Democratic presidential nomination, and is expected to compete with Republican candidate Donald Trump in the November election. The Democratic National Convention is scheduled to be held in Chicago on August 19, and the specific details of the nomination process have not yet been determined. However, Ohio's election regulations may push the Democratic Party to take measures to ensure that Harris can be nominated before the convention.
Harris’ campaign has received strong support from important Democratic figures including President Biden, Senator Elizabeth Warren, and Representative Nancy Pelosi. Some political rising stars in her campaign team hold different views on cryptocurrencies, which may affect their policy stance.
In terms of financial policy, Transportation Secretary Pete Buttigieg, although not very vocal, talked about Bitcoin during the 2020 presidential campaign, showing his awareness of cryptocurrencies. Pennsylvania Governor Josh Shapiro established legal status for cryptocurrencies during his term, demonstrating his attention to this emerging financial field. Illinois Governor J.B. Pritzker and California Governor Gavin Newsom actively expressed their welcome and support for the cryptocurrency industry by supporting the establishment of new headquarters for cryptocurrency exchanges and the coordination of blockchain regulatory frameworks.
Harris’ campaign and its attitude toward cryptocurrencies could become an important consideration in its policymaking, especially as cryptocurrencies are becoming an increasingly important part of the financial sector. These policy positions and actions will have a profound impact on the future development of cryptocurrencies in the United States.
Conclusion:
On July 23, the significant increase in the price of Bitcoin and the launch of the Ethereum spot ETF on mainstream trading platforms in the United States marked the further mainstreaming of cryptocurrency investment tools. Meanwhile, creditor repayment progress in the Mt. Gox bankruptcy case and Metaplanet’s accumulation of Bitcoin, as well as new highs in inflows into the BlackRock Bitcoin ETF, reflect the market’s continued interest and confidence in cryptocurrencies.
At the same time, as the 2024 US election approaches, Vice President Kamala Harris's leading position in the Democratic Party may make cryptocurrency policy a key issue in the campaign. Different politicians' different positions on cryptocurrencies foreshadow the diversity of future policies. The cryptocurrency market is ushering in new development opportunities, and its growing importance in US politics and economy indicates that a more open and regulated market environment is coming.
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