Overview
Discover the latest news in the cryptocurrency market from the past week. With a remarkable 77% decline in scams and rising expectations of higher market capitalizations, the industry shows promising signs. Regulatory scrutiny of key players has also emerged, while the market remains resilient, unfazed by the latest CPI figures. To delve into a comprehensive market outlook and gain valuable insights, continue reading and stay informed about the dynamic world of cryptocurrencies.
Fundamental Updates
Let’s delve into the significant developments shaping the crypto market landscape:
- Cryptocurrency Scams Plummet by 77% in First Half of 2023, Chainalysis Report Finds: Blockchain intelligence firm Chainalysis reports a remarkable 77% drop in cryptocurrency scams, with losses falling from $3.3 billion to $1.1 billion during the initial six months of 2023. This decline highlights improved security measures and regulatory efforts, instilling confidence in the industry’s ability to protect investors from fraudulent activities.
- Crypto Hedge Funds Anticipate Higher Digital Asset Market Capitalizations in 2023, PwC Study Reveals: A PwC study reveals that the majority of crypto-native hedge funds expect increased market capitalizations for digital assets by the end of 2023 compared to the previous year. With Bitcoin’s 85% year-to-date rally and a 50% surge in total crypto capitalization, despite market volatility, confidence in crypto investments remains strong.
- Blockchain Association Calls for SEC Investigation into Prometheum: The Blockchain Association has urged the U.S. Securities and Exchange Commission (SEC) to investigate crypto firm Prometheum, citing concerns over its special purpose broker-dealer (SPBD) license approval by the Financial Industry Regulatory Authority (FINRA). The association also questions how Prometheum’s co-CEO secured a seat to testify before the U.S. House Financial Services Committee. Regulatory scrutiny surrounds Prometheum’s activities in the crypto industry.
- Crypto Market Unfazed by CPI Figures, Disappointing Traders: The cryptocurrency market showed little reaction to the latest Consumer Price Index (CPI) figures, disappointing traders who expected a more significant impact. Despite being some of the lowest numbers in recent years, Bitcoin and other cryptocurrencies remained largely unaffected. The CPI data revealed a modest 0.2% increase in June, bringing the year-over-year inflation rate down to 3.0%, matching levels from March 2021.
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.18 trillion. This is down by 2 billion from last week.
- Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 49.9%. This is up slightly from last week.
- ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 19%. This is down slightly from last week.
Key Data Points
Bitcoin Price Analysis:
Bitcoin bounced off the $30,000 psychological mark and retested $31,000 since last week. Short-term retests weaken support and resistance levels. Bulls must push the price to $31,000–31,500 to avoid a decline. If bulls can conquer this zone, BTC/USDT may climb to $33,000. The headline CPI YoY inflation was 3.0%, below the forecasts of 3.1%. This is down from 4.0% the month before. Even better, core CPI YoY inflation fell to 4.8%, beating market forecasts of 5.0%. Since December 2021, the core CPI has decreased below 5.0%. Inflation may be halting after 26 months.
Bearish trend will be confirmed if the price falls below $30.000 and short-term bulls may take profits. They might drop to $29,250. The pair may stay between $27,500 and $31,500 after such a deep correction.
BTC Data
Here are some of the key things to watch in the crypto market in the coming weeks:
- SEC’s Response to Coinbase’s Legal Defense Holds Significance for Tokens like $SOL and $MATIC: The forthcoming response from the SEC to Coinbase’s legal defense holds great significance for tokens like $SOL and $MATIC, previously considered securities. The positive market performance of Coinbase ($COIN) has increased optimism for a favorable outcome. The SEC’s decision will provide clarity and shape the regulatory landscape, impacting these tokens and the broader cryptocurrency market.
- GMX Decentralized Exchange Initiates Voting for Fee Allocation in V2 Release: GMX, the decentralized exchange protocol, is currently conducting a vote to determine fee splits for its upcoming V2 version. Option One proposes allocating 10% of fees to the GMX Treasury, with a portion dedicated to funding Chainlink oracles. The remaining fees would be distributed among liquidity providers and GMX stakers, encouraging active participation in the ecosystem. Voting concludes on July 19.
The crypto market has demonstrated resilience and positive developments across various fronts in the last couple of months. Looking ahead, these positive trends, along with growing institutional participation, create an optimistic outlook for future growth and expansion in the crypto market.
Bitcoin returns were -1.42% for this week. The Alpha Blue Chip Focused Strategy returns were -1.91% during the same period (07 – 13 July). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -0.14% and 0.19%, respectively.
