Bitcoin Price: US$ 28,395.91 (-0.37%)
Ethereum Price: US$ 1,565.01 (-2.15%)
Bitcoin (BTC) exhibited resilience in contrast to the broader cryptocurrency market, with BTC holding steady at around $28,500 after briefly dipping to $28,100, while Ethereum (ETH) faced weakness, sliding by 1.8% to nearly $1,560, reaching a 15-month low relative to BTC. The CoinDesk Market Index, a gauge of the overall digital asset market, dipped by 0.6%. The Sui blockchain’s native token (SUI) plummeted 7.6% after reports of concerns that the Sui team might be manipulating the token’s supply through staking, an accusation vehemently denied by the Sui Foundation. Amid Bitcoin’s strong performance, its market share, known as the Bitcoin Dominance Rate, reached over 52%, the highest since April 2021. Additionally, optimism regarding the approval of a Bitcoin spot exchange-traded fund (ETF) and the upcoming Bitcoin halving in early 2024, which is seen as bullish for its price, could further increase this metric. The discount for Grayscale’s Bitcoin Fund (GBTC) narrowed to 12% on Tuesday, the closest it’s been to the trust’s net asset value since December 2021, as the company stands ready to convert GBTC into an ETF upon SEC approval, with investors hopeful after the SEC’s recent decision not to appeal its August court loss over Grayscale’s ETF application.
The European Union has formally approved new regulations enabling tax authorities to share data on individuals’ cryptocurrency holdings, an effort to prevent the use of crypto for offshore asset storage. These rules, known as the Eighth Directive on Administrative Cooperation (DAC8), had unanimous support from EU member states. They extend to various digital assets, including stablecoins, non-fungible tokens (NFTs), decentralised finance (DeFi) tokens, and proceeds from crypto staking. DAC8 complements the recently finalised Markets in Crypto Assets Regulation (MiCA) and anti-money laundering rules under the Transfer of Funds Regulation (TFR). The directive requires EU-based crypto-asset service providers to report transactions from customers residing in the EU. Additionally, traditional financial institutions are now covered in relation to electronic money and central bank digital currencies (CBDCs). In a separate report, digital asset management firm 21.co predicts the tokenised asset market could grow to as much as $10 trillion by 2030 as traditional financial institutions increasingly adopt blockchain technology, marking the convergence between crypto and traditional asset classes, including fiat currencies and real estate. Currently valued at around $116 billion, the tokenised asset market is dominated by Ethereum, hosting nearly $60 billion of these assets, followed by Tron and Solana. Moreover, digital dollars, or dollar stablecoins, constitute the majority of tokenised assets, and tokenised U.S. government bonds have experienced significant growth this year, driven by rising interest rates, surpassing yields in decentralised finance (DeFi) lending markets.
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