Cryptocurrency daily summary:
BTC is expected to break through $69,000, and the crypto market sentiment continues to lean towards greed;
Biden withdraws from presidential race, BODEN token plummets 44%
Rollup.Finance Announces It Will Cease Operations
South Korea’s strict laws on cryptocurrency exchanges take effect
Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on July 19, Grayscale Bitcoin Spot ETF (GBTC) saw an outflow of US$20.3 million; at the same time, iShares Trust Bitcoin Spot ETF (IBIT) saw an inflow of US$116.2 million, Fidelity Bitcoin Spot ETF (FBTC) saw an inflow of US$141 million, VanEck Bitcoin Spot ETF (HODL) saw an inflow of US$41.8 million, and Bitwise Bitcoin Spot ETF (BITB) saw an inflow of US$44.6 million.
As the prices of major tokens rebounded strongly, the Crypto Fear and Greed Index reached the "greatest" in more than a month, corresponding to the opposite scenario of "extreme fear" last week, which represents the market view of ordinary traders. Some traders believe that BTC is expected to break through the historical high of $69,000
BODEN token plummets 44% as Joe Biden drops out of presidential race
US President Joe Biden has announced that he will not seek re-election in the upcoming 2024 US presidential election. Biden has faced increasing pressure to withdraw over the past few weeks, with multiple current senators calling for him to drop out of the race and even former President Barack Obama reportedly advising him to do so.
Biden believes resigning is in the interest of the party and the country, according to a statement he issued on Sunday. He said he would support Vice President Kamala Harris as the Democratic nominee. Following the news, memecoin Jeo Boden token plunged 44%. Meanwhile, other possible contender coins have risen significantly. In particular, a memecoin called Kamala Horris is up 52%, while memecoin Gabin Noosum is up 115%.
In contrast, the price of tokens named after Republican presidential candidate Donald Trump also rose after his opponent withdrew from the race. Doland Tremp was the most affected memecoin, up 24% since the news broke.
Biden has come under increasing pressure after his poor performance in last month's debate sparked discussions about a possible replacement for him as the presidential candidate. Over the past week, top Democrats, including Senate Majority Leader Chuck Schumer, have called on him to withdraw, ABC News reported.
As the Democratic Party prepares to choose its presidential nominee at the Democratic National Convention in Chicago next month, it is unclear whether the party will follow Biden's lead and nominate Harris. According to a top contract from Polymarket, Vice President Harris has an 81% chance of becoming the nominee, while the average "other" candidate has a 12% chance.
Rollup.Finance announces upcoming cessation of operations
Decentralized derivatives trading platform Rollup.Finance announced that it will cease operations. The project said on X: "In the 16 months of continuous operation, we have weathered the storm of the bear market, increased trading volume, retained traders, and brought innovation through partnerships. However, due to the lack of resources and product-market fit of zkSync, we have re-evaluated our position and decided to take this step."
Rollup.Finance said that users' assets are safe and users have one month to close their positions and withdraw their funds. Orders that are still open at expiration will be automatically liquidated, and affected users will have an additional month to withdraw their funds. The platform will be completely shut down on September 21, 2024, and related applications will not be available. After that, the official email, Twitter account and Discord chat support channels will be deactivated.
Rollup.Finance expressed its deepest gratitude to early users and investors, and stated that some of the team will continue to fight for the future of DeFi and Ethereum's decentralization.
South Korea’s strict laws on cryptocurrency exchanges take effect
On July 19, new rules from South Korea’s financial security regulator came into effect, aimed at protecting users who purchase and store crypto assets through virtual asset service providers (VASPs).
According to a July 17 statement from South Korea’s Financial Services Commission (FSC), VASPs must take several measures to ensure the safety of users’ cryptocurrencies, including purchasing insurance for users’ crypto assets to prevent hacking and malicious attacks, separating customers’ crypto assets from those of the exchange, and safely storing customer deposits in banks.
VASPs must also maintain a level of due diligence to prevent money laundering on their platforms and must report any suspicious transactions to regulators.
“VASPs should always maintain a suspicious transaction monitoring system and immediately report suspicious transaction activities to the Financial Supervisory Service (FSS),” the FSC document states.
South Korean cryptocurrency exchanges have expressed concerns about these regulations, believing that they could lead to the delisting of a large number of tokens. On July 3, Cointelegraph reported that as part of the new crypto user protection law, 20 South Korean cryptocurrency exchanges will review a total of 1,333 cryptocurrencies in the next six months, and the Digital Asset Exchange Alliance (DAXA) said that "a large-scale delisting at one time is unlikely."
Meanwhile, South Korea’s ruling People’s Power Party formally proposed postponing the implementation of the country’s taxation of cryptocurrency trading profits, noting that current sentiment toward crypto assets is deteriorating and that a quick taxation of virtual assets is “not wise at this time.”
Market
Market trend:
-BTC: This morning it broke through $68,000, with spot ETF inflows exceeding $2 billion in the past two weeks.
-ETH: Breaking through the $3,500 mark, the ETH ETF will be listed for trading on July 23. Some in the community believe that the approval of the ETH ETF may have short-term negative effects.
-SOL: Back above $180, Meme tokens are still the best performing sector among altcoins.
Data indicators:
-Today's AHR999 index is 0.95, indicating that the market has passed the bottom area and is gradually climbing higher.
-The Fear and Greed Index is 70. Compared with the extreme fear when the BTC price was $53,500, market sentiment has entered a frenzy in a short period of time.
Macroeconomics:
-U.S. stocks: The S&P 500 fell 1.97% last week, the Nasdaq Composite fell 3.65%, and the Dow Jones Industrial Average rose 0.72%. Technology giants such as Microsoft, Google, and Apple all fell sharply.
-Political trends: Biden announced his withdrawal from the race, and Black female Vice President Harris will become the Democratic presidential candidate. On Polymarket, Trump's chances of winning dropped to 63%.
Market hot spots:
1. BTC: Strong rise above $68,000, only 8% away from the all-time high, driving the overall market up. This week's Bitcoin Nashville Conference will be held on the 27th, and US presidential candidate Trump will attend the conference. In addition, the private plane of the world's richest man Musk also landed in Nashville, and the market rumored that Musk might also attend the Bitcoin conference. Musk X's account avatar has also been changed to a laser eye avatar. The last time he changed his avatar to this avatar was in April 2019, after which BTC entered a bull market.
2. Solana Ecosystem: SOL returned to above $180, driving the overall strong performance of Solana Ecosystem. Cat Meme Coins such as WEN, POPCAT, and MEW surged. POPCAT is about to become the first cat Meme Coin to break the $1 billion mark in market value, and MEW also broke a record high over the weekend. The current total market value of cat Meme Coins is $2.6 billion, and the current total market value of dog Meme Coins is $39.2 billion.
in conclusion:
Overall, market sentiment shifted from fear to enthusiasm in a short period of time, mainly driven by the strong rise of mainstream currencies such as BTC and ETH. In terms of macroeconomics, despite the poor performance of technology stocks, the crypto market seems to have been driven independently, especially by the upcoming Bitcoin conference and Musk's potential participation. At the same time, Meme coins in the Solana ecosystem also performed well and became one of the market hotspots.
Investors should pay attention to upcoming major meetings and ETF listings, which may have a significant impact on market sentiment and price trends. At the same time, they should be aware of the short-term correction risks that may be caused by overheated markets.
Macro: Wall Street closes lower on global tech glitches; Asian stocks weigh after Biden exit
U.S. stocks continued to fall on Friday, July 19, as uncertainty in the market intensified due to the ongoing chaos caused by global technology failures. Technical problems at cybersecurity company Crowdstrike disrupted operations in multiple industries, including aviation, banking and healthcare, and crashed Microsoft's Windows operating system. Although the vulnerability has been discovered and fixed, some services are still affected.
The three major indexes: Dow Jones fell 0.93%, S&P fell 0.71%, and Nasdaq fell 0.81%
On a weekly basis, the Nasdaq and S&P 500 both posted their worst weekly performance since April, while the Dow Jones Industrial Average was not immune to the decline after hitting an all-time high earlier in the week.
Asian stocks opened lower on Monday as a surprise rate cut by China's central bank failed to boost sentiment, while Wall Street futures strengthened after U.S. President Joe Biden announced his withdrawal from the race. The People's Bank of China cut short-term interest rates by 10 basis points to reduce long-term borrowing costs and bond yields after Beijing released a policy paper outlining its economic plans.
MSCI's index of Asia-Pacific shares fell 1.0%, Japan's Nikkei dropped 1.1%, South Korea's benchmark fell 1.5% and Taiwan's shares dropped 2.4%.
There are several important economic data releases this week, with the Federal Reserve set to release its closely watched inflation gauge on Friday to cap off the week. The core personal consumption expenditures index is expected to rise 0.1% in June, down slightly to 2.5% on an annual basis. This is highly expected to set the stage for a rate cut in September, with futures pricing in a 97% chance of a September rate cut. In addition, GDP growth is expected to rise to an annualized rate of 1.9% in the second quarter, up from 1.4% in the first quarter.
In commodities, oil prices rose slightly due to geopolitical factors. The ceasefire agreement in Gaza did not make progress due to fierce fighting between Israeli troops and Palestinian militants in Rafah. Brent crude rose 22 cents to $82.85 a barrel, and U.S. crude rose 36 cents to $80.49 a barrel.
Invesco released a report saying that geopolitical competition has become the biggest concern for investors, even more than inflation, which has triggered a preference for safe-haven assets such as gold. The price of gold remained at $2,407 per ounce, close to the record high of $2,483.60 set last week.
