Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was MultiversX, rising 10.70%.
- Indian crypto exchange CoinDCX has acquired Dubai-based BitOasis, a first step in the company’s plans to expand globally. The purchase will give CoinDCX which first invested in BitOasis last year, a “formidable foothold across the MENA region,” the Indian firm’s cofounder Sumit Gupta said. The purchase comes as Dubai vies with the likes of Singapore and Hong Kong to establish itself as a nexus for crypto businesses, writes Bloomberg.
Asset managers are optimistic that the SEC will greenlight the first U.S. ETFs that invest directly in Ether as soon as mid-July, reports Bloomberg, saying the back and forth with the regulator remains constructive. Despite earlier market speculation that approval would land during the July 4 holiday week, the SEC has told Ether exchange-traded fund applicants that they have until July 8 to submit paperwork.
Weaknesses- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Core, down 31.52%.
- According to data from Cryptoslam, the NFT market experienced a significant decline in monthly volumes during the second quarter (Q2) compared to the first quarter of 2024. Sales volumes in Q2 fell by 45% quarter-over-quarter. In the first quarter of 2024, total sales volumes in the NFT market exceeded $4.1 billion and in the second quarter NFT volumes were approximately $2.28 billion, the lowest since Q3 2023, according to CryptoPotato.
- Bitcoin fell for a fourth consecutive trading session, reports Bloomberg, reaching its lowest since February, on concerns about potential selling by governments, creditors of failed exchanges, and beleaguered crypto miners. Bitcoin fell as much as 8% before paring the declines and is down about 25% from its March record.
Opportunities
- Sentient Labs, a month-old artificial intelligence startup co-founded by an executive behind the Polygon blockchain, raised $85 million from investors including billionaire Peter Thiel’s Founders Fund. Crypto venture capital funds Pantera Capital and Framework Ventures co-led the seed funding round alongside Founders Fund, writes Bloomberg.
- Robinhood Markets is considering offering cryptocurrency futures in the U.S. and Europe in the coming months. Once its $200 million acquisition of Bitstamp closes next year, Robinhood is hoping to use the crypto exchange’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe, writes Bloomberg.
- Global Banking Standard Setter has approved a framework for crypto exposures, reports Bloomberg. The basel committee on Banking supervision approved a disclosure framework for banks’ exposure to crypto that must be implemented by the start of 2026.
Threats
- Silvergate Bank, one of the banks that collapsed due to the FTX fraud, has been fined $63 million by two regulators for allegedly failing to monitor transactions, Bloomberg reports. The Federal Reserve announced penalties against the bank owned by Silvergate Capital Corp.
- Swiss bank regulators are seeking more regulation of stablecoin issuers. In a Bloomberg interview, the head of Switzerland’s financial regulator said stablecoin issuers should be supervised more closely, calling the crypto tokens a “loophole” in the existing regulatory framework, writes Bloomberg.
- The amount of cryptocurrency stolen through hacks and network exploits more than doubled to $1.38 billion in the first six months of the year. Five large attacks accounted for 70% of all the crypto that was stolen, writes Bloomberg.
