Market picture
The crypto market retreated by 0.6% in 24 hours to a total cap of $2.31 trillion. The cautious mood can be attributed to a downward move in US and European stock markets and the momentum of a stronger dollar. However, the dynamics of coins are not homogeneous. The decline of more than 1% in Bitcoin, Ethereum, and BNB contrasts with the growth of more than 2.5% in Toncoin, Cardano, and Tron. Temporary institutional favourites are suffering losses due to the pull from risk in traditional financial markets.
Bitcoin has pulled back to $62.6K after two failed attempts to consolidate above $63.0K on Monday. Continued market wariness could bring the price back to the $60K area in the near term, forcing a retest of the 61.8% retracement level from the January lows to the March highs.
At the end of last month, volatility in XRP was falling after the price returned to the most important support of the last 12 months. Since Saturday, there has been a dominance of buyers, keeping the balance of power on the bullish side until Tuesday morning. In our view, confirmation of the bullish trend recovery is required, which could be a retracement of the $0.50 price where the important round level and the 50-day moving average are combined.
News background
According to CoinShares, crypto fund investments fell by a paltry $30 million last week after outflows of $584 million a week earlier. Bitcoin investments were up $10 million, while Solana was up $1.6 million; Ethereum was down $61 million. Grayscale’s bitcoin ETF saw outflows of $153 million for the week.
Weekly trading volumes rose 43% to $6.2B but remain well below the $14.2bn average for the year.
Bitcoin is looking for the next big catalyst for an upward move. It’s not on the horizon yet, but DigitalX expects things could change as the US election approaches.
The US Treasury Department has approved a new reporting order requiring cryptocurrency brokers, including exchanges and payment processors, to report all sales and exchanges of digital assets to the IRS, regardless of the amount of the transaction.
Vitalik Buterin suggested a way to speed up transactions in Ethereum. One option to increase throughput could be to change the architecture of slots and epochs. According to Arkham, Buterin owns over $857 million in crypto assets.
Circle was the first to receive a licence to issue stablecoins under the new Cryptocurrency Regulation Act in the European Union (MiCA). Circle Mint France was granted the right to issue EURC and USDC euro-denominated stablecoins.
Apollo Crypto noted that NFT sales collapsed by 44% in the second quarter due to the crypto market’s downturn and the meme token boom. This is largely due to interest in ‘political’ and celebrity-created meme coins.
Air purifier manufacturer Kronos Advanced Technologies became the first US public company to accept payment for its products using SHIB tokens.
