Bitcoin Price: US$ 25,128.60 (-3.11%)
Ethereum Price: US$ 1,650.95 (-5.12%)
Large holders of Bitcoin, particularly those with 100-1,000 BTC and 10-100 BTC, have been maintaining or increasing their Bitcoin holdings despite recent regulatory turmoil affecting the cryptocurrency market. On the other hand, wallets with more than 1,000 BTC showed less risk appetite. Funding rates for Bitcoin remain positive, and there has been a decrease in BTC on centralised exchanges. In the AI crypto token sector, there has been a decline in value, with AI-related tokens losing up to 25% of their value in June. The sector experienced a short-lived boom after chip-maker Nvidia’s optimistic outlook for AI sales but subsequently cooled off. The recent regulatory actions against Binance and Coinbase have also impacted the relationship between AI tokens and Nvidia shares. Meanwhile, the U.S. Federal Reserve has decided to maintain its benchmark interest rates, signaling a pause in its previous series of rate hikes. The Fed cited the need to assess the impact of previous tightening efforts on the economy.
MakerDAO is considering removing $390 million worth of Gemini Dollars (GUSD) from its reserves, with the community voting on a proposal to decrease the maximum amount of GUSD held. The vote is significant for GUSD as MakerDAO holds a significant portion of the stablecoin’s circulating supply. In other news, the supply of Bitcoin on cryptocurrency exchanges has reached its lowest level since February 2018, with traders and investors increasingly opting for self-custody. Meanwhile, Michael Saylor, co-founder of MicroStrategy, believes that recent enforcement actions by regulators in the US could lead to a Bitcoin-focused industry, potentially driving the price of Bitcoin over $250,000. Saylor suggests that regulators view Bitcoin as the only legitimate cryptocurrency, while stablecoins, crypto-tokens, and crypto-based derivatives may face more scrutiny.
Delio, a South Korean digital asset savings and lending firm, has temporarily frozen withdrawals due to increased market volatility and investor confusion. The company aims to protect its customers’ assets while investigating the situation. In a separate development, Banq, a crypto payments and savings platform based in Nevada, has filed for Chapter 11 bankruptcy protection following rumors of insolvency. The filing came shortly after crypto custodian BitGo expressed intent to acquire Banq’s parent company, Prime Trust. Lastly, risk management project Gauntlet has advised the Aave community to freeze Curve DAO (CRV) tokens on Aave v2 and adjust the loan-to-value ratio for CRV to zero. This recommendation is in response to a large CRV loan taken by a wallet address connected to Michael Egorov, the founder of Curve Finance, aiming to prevent potential bad debt for Aave due to declining CRV token liquidity.
Disclaimer: The following summaries are provided for informational purposes only and are not intended to infringe upon any copyrights. All rights to the original content belong to their respective owners, and the summaries are intended to provide a brief overview of the content. If you are the owner of any of the content summarised here and have concerns about its use, please contact us to discuss the matter further.