Bitcoin Price: US$ 26,917.62 (+0.53%)
Ethereum Price: US$ 1,799.21 (+0.23%)
Bitcoin experienced a stabilisation after a week of plunging prices, trading at around $27,165 and up 1.1% in the past 24 hours. The recent decline in Bitcoin’s value was attributed to profit-taking and low liquidity amidst industry-focused and macroeconomic uncertainties. Analysts believe that the market is currently driven by risk and liquidity, leading to significant selling pressure. However, there is optimism that more liquidity will enter the crypto market. Ethereum faced technical issues, causing the network to stop finalising blocks for over an hour, raising concerns about its stability and reliability. Developers and experts are investigating the cause of these interruptions to ensure the network’s performance.
Bitcoin’s recent weakness, with a decline of over 5% for the week, has affected the sentiment in the altcoin market. However, there are a few altcoins that have shown positive signs. Cardano has rebounded strongly from its uptrend line, indicating strong buying interest at lower levels. Cosmos has also experienced a bounce from its support level and has the potential for a rally above the 50-day SMA. Lido Dao has rebounded from support and is approaching resistance, suggesting a potential continuation of the recovery. Arbitrum has found support near $1 and is showing bullish pressure, with the possibility of breaking above $1.20. In other news, Glassnode reported that the number of Bitcoin wallet addresses holding one whole BTC or more has surpassed one million, with an increase in such addresses during the market downturn. Glassnode remains confident in Bitcoin’s mid-term potential, predicting a price of $35,000.
The European crypto market has experienced a surge in venture capital (VC) funding in recent months, attributed to the introduction of the Markets in Crypto Assets (MiCA) regulatory framework in the European Union. MiCA, set to become law in July, aims to regulate crypto assets and transactions within the industry, making it a significant step in crypto regulation worldwide. The announcement has garnered support from industry executives, with VC investments in European crypto projects increasing nearly tenfold in one year. In Q2 2023, Europe accounted for 48% of all VC funding directed towards crypto startups, according to PitchBook data. In a separate development, major financial firms including Deloitte, S&P Global, and Moody’s have collaborated to support the launch of the Canton Network, a blockchain platform leveraging Web3 technology. The network seeks to streamline financial markets by providing decentralised infrastructure, enhancing efficiency, risk management, and enabling the synchronisation of assets, data, and cash across applications. With 30 initial participants, including Goldman Sachs, Microsoft, and BNP Paribas, the network anticipates exponential growth in connections as applications are developed throughout the year.
Recently, dormant Bitcoin that had been held for many years has come back to life, with 139 Bitcoin from 2011 being moved to a newly created Segwit address. The owner, who held the coins for nearly twelve years, purchased them in June 2011 for a little over $2,250, and they are now valued at a staggering $3.5 million. This movement is part of a larger trend of “Ancient Supply” Bitcoin being revived, with 3,200 BTC from before 2013 being moved this year. The identities and motives of these long-term holders remain unknown due to Bitcoin’s pseudonymous nature. In other news, American crypto companies are seeking refuge in Bermuda due to the increasingly uncertain regulatory environment in the United States. Bermuda’s friendlier digital asset framework, coupled with the lack of regulatory clarity in the US, has made it an attractive destination for relocation. With key regulators cracking down on crypto firms and slow progress in establishing new rules for the industry, US companies are turning to jurisdictions with more regulatory certainty.
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