1. Market Wrap: What’s Next for Bitcoin After Break Below $30K
Bitcoin broke below $30K. Some analysts see value opportunities while others expect further downside.
Bitcoin stabilized around $29,600 at press time Tuesday after breaking below the important $30,000 level on Monday. The world’s largest cryptocurrency has been in a downtrend trend since failing to hold an all-time high around $63,000 in April. Concerns about regulatory risks, less accommodative monetary policy and fading institutional demand have contributed to selling pressure over the past few months.
Edward Moya, analyst at the foreign exchange brokerage firm Oanda, described bitcoin’s trading environment as a “tug of war between bears and bulls,” in an email.
“Bitcoin’s longer-term bullish outlook depends on some mainstream adoption across the U.S. and Europe, and for some that appears to be at risk,” wrote Moya.
Latest prices
Cryptocurrencies:
Bitcoin (BTC) $29,814.97, -3.13%
Ether (ETH) $1,792.4, -1.86%
Traditional markets:
S&P 500: 4324, +1.54%
Gold: $1809.9, -0.2%
10-year Treasury yield closed at 1.213%, compared with 1.201% on Monday
The European Union Commission is proposing a revamp of anti-money laundering rules, which could include banning anonymous crypto asset wallets. That did not help market sentiment on Tuesday, according to Moya.
2. Meme Tokens Set for Third Straight Monthly Loss as Retail Traders Flee Dogecoin Copycats
Are traders and investors done with meme tokens?
Have dog-themed meme tokens had their day or are they just playing dead?
A recent shakeout in meme tokens, a sector best known by the Shiba Inu-themed dogecoin (DOGE), indicates that retail investors are exiting their positions in cryptocurrencies as recent market sell-offs have spooked many crypto newcomers.
But analysts and traders are divided on whether retail interest in meme tokens will return anytime soon to this community-driven, less serious part of the crypto market.
Meme tokens posted massive gains earlier this year, inspired by Tesla CEO Elon Musk-touted dogecoin, which posted a four-month-long winning streak. In April alone, the price of dogecoin rose 528.4% on Hong Kong-based crypto exchange FTX, according to TradingView.
3. S&P Crypto Index Has 243 Coins. DOGE Is Not One of Them
The index company’s Broad Digital Market tracker dives deep — very deep — into the digital asset universe, CoinDesk found.
Dogecoin is out; bitcoin diamond is in. So go the rules of the S&P’s new benchmark for the crypto sector.
CoinDesk obtained a list of the 243 digital assets in the S&P Cryptocurrency Broad Digital Market (BDM) Index. A cursory analysis found that Wall Street’s latest attempt to measure returns from the “broad investable universe” ventured to crypto’s outermost rings.
An eclectic mix of name-brand blockchains and lesser-known protocols are included in S&P’s BDM. Weighted according to the index-maker’s rulebook, the coins’ collective returns crunch down to a point-based performance figure. That figure hovered around 2,676 at press time, down 14% for the month of July.
4. Institutional Demand for Bitcoin Remains Weak: Glassnode
Demand indicators include the Purpose ETF experiencing a slowdown in net inflows and GBTC trading at a notable discount.
The Purpose Exchange-Traded Fund, one of the first approved bitcoin exchange-traded products (ETPs), has seen a slowdown in net inflows this week after experiencing a period of relatively strong demand in May and June, according to a report by Glassnode.
“The week closed with the largest net outflow of -90.76 BTC since mid-May,” said the report.
The slowdown suggests institutional demand for the largest currency by market cap remains weak across these regulated products, according to Glassnode.
5. MakerDAO Moves to Full Decentralization; Maker Foundation to Close in ‘Months’
The move by the protocol’s home office has been long expected.
The original decentralized finance (DeFi) protocol started out decentralized and to decentralization it will return.
The Maker Foundation has announced it is turning over operations entirely to its decentralized autonomous organization (DAO), MakerDAO, as founder Rune Christensen has long promised.
“The Foundation will formally dissolve within the next few months,” Christensen wrote in a blog post shared in advance with CoinDesk. No more specific timeline was offered.
MakerDAO has been wildly influential within crypto, especially the Ethereum community.
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July 21, 2021
