Author: Revc
Preface
The crypto industry plunged on Monday, and then rebounded in a V-shape driven by favorable factors in the financial market and policy supervision. On August 8, crypto assets rebounded sharply, with the average increase of the top 50 currencies close to 10%. It took less than a week from the plunge to the recovery. Driven by a series of positive news, the market gradually got rid of the haze before the start of the bull market. The following is a recent inventory of positive factors for investors' reference.
Summary of favorable factors
1. Concerns about the US economic recession have eased and market information has recovered.
According to Golden Finance, Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities, said the initial jobless claims data was a positive signal for the market as a whole. The data showed that the growth momentum of the labor market was not slowing down as shown in the non-farm payroll report, and also showed that there were no signs of large-scale layoffs in the economy.
A better-than-expected report on initial jobless claims in the United States eased market concerns about a weak labor market, driving a rebound in U.S. stocks after a week of slumps. The S&P 500 posted its biggest one-day gain since November 2022, with all sectors rising. Meanwhile, U.S. Treasuries fell across the board as economic concerns receded. This market rally was mainly driven by expectations adjustments, especially after last week's manufacturing PMI and non-farm data raised concerns about the Fed's policy. The improvement in initial jobless claims helped restore market confidence, with all three major indexes rising sharply.
2. Putin: Digital currency is full of prospects, Russia must seize the opportunity
On August 8, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia. It is reported that only registered Russian legal entities and individual entrepreneurs have the right to mine. The signed law introduces new concepts, including digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals who organize mining pool activities. In the future, Russia will further attract industry investment due to its crypto-friendly policies.
3. US politics shows crypto-friendliness
Harris:
Golden Finance reported that on Thursday local time, a group of cryptocurrency industry executives held a conference call with White House officials and advisers to Vice President Kamala Harris to provide their opinions as Democratic presidential candidates formulate policy positions on cryptocurrency issues.
Trump:
Former US President Donald Trump said on his social media platform Truth Social that the United States must maintain its leading position in the cryptocurrency industry. He emphasized that he is positive and open to cryptocurrency companies and related fields, and criticized the position of current President Joe Biden. In addition, the large amount of donations Trump has received from the crypto industry has also contributed to the continuity of his crypto-friendly attitude to a certain extent.
Donald Trump Jr.:
Donald Trump Jr. said in a live Q&A session on the subscription platform Locals that he personally likes Memecoin and the culture, and said of the crypto project in preparation: "I think what we want to do is take over most of the banking industry, and this concept of decentralized finance is obviously very attractive to people like me who have been deprived of funds by banks or cannot get insurance."
4. Positive progress in judicial affairs
U.S. District Judge Peter Castel has given final approval to a $12.7 billion settlement between defunct cryptocurrency exchange FTX and its sister trading firm Alameda Research and the CFTC. FTX and Alameda signed the consent decree to resolve a 20-month-long lawsuit from the CFTC.
XRP surged 17% after Ripple Labs reached a settlement with the U.S. Securities and Exchange Commission (SEC). The settlement caused the price of XRP to jump from $0.50 to $0.65, and trading volume also increased significantly. The settlement agreement stipulates that Ripple pays a civil penalty of $125 million and agrees to an injunction against future violations of securities laws.
5. Approval by institutional representatives
Golden Finance reported that Chris Burniske, former head of Ark Invest's crypto business and current partner at Placeholder VC, wrote on X that market sentiment has been reset, leverage has been cleaned, and the lows of most high-quality crypto assets this round are much higher than what we saw in 2023. At the same time, global central banks are about to be forced to ease policies, and market volatility in the third quarter is expected to intensify. In any case, the current situation is a good early bull market.
6. The Bank of Japan sends a dovish signal
The deputy governor of the Bank of Japan made unexpectedly dovish remarks on Wednesday, saying that interest rates would not be raised during a period of market instability. This statement directly led to a cliff-like drop in the yen exchange rate, with the dollar rising by more than 2.5% against the yen at one point, setting a recent low for the yen. At the same time, global stock markets were also boosted by dovish remarks and the depreciation of the yen, with the Nikkei 225 index rising sharply, recovering the losses on Monday.
7. Brazil’s Securities and Exchange Commission has approved the first Solana spot ETF
Golden Finance reported that the Brazilian Securities and Exchange Commission (CVM) has approved the first Solana spot ETF. The investment product is provided by QR, a Bitcoin and Ethereum ETF management company, and will be managed by Vortx. Currently, the ETF is still in the early stages of operation and still needs to be approved by B3 for regulatory reasons. It will be launched within 90 days at most.
summary
This week, the crypto industry rebounded sharply driven by positive factors in financial markets and policy regulation. If the Fed successfully implements interest rate cuts, the industry will usher in new development opportunities. However, with the increase in global market volatility, as well as the impact of the yen rate hike and geopolitical conflicts in the Middle East, investors still need to remain vigilant and guard against the impact of black swan events.
