Headline
BTC Falls Below $57,000
Market data shows that BTC has dropped below $57,000, currently trading at $56,972, with a daily decline of 5.5%. The market is volatile, so please ensure proper risk management.
Biden’s Election Probability Hits Historic Low of 9%
Polymarket, a prediction market on the X platform, announced that Biden’s election probability has hit a historic low of 9%. In comparison, Trump’s election probability is at 61%.
Market
As of the time of writing, according to Coingecko data:
BTC recent price is $57,186.19, with a daily change of -5.2%;
ETH recent price is $3,067.59, with a daily change of -7.0%;
BNB recent price is $513.88, with a daily change of -7.6%;
SOL recent price is $128.01, with a daily change of -9.0%;
DOGE recent price is $0.1048, with a daily change of -11.5%;
XPR recent price is $0.4339, with a daily change of -8.7%.
Policy
German Legislator Urges German Government to Stop Selling Bitcoin
German legislator Joana Cotar strongly criticized the government’s decision to sell $195 million worth of Bitcoin, stating that this could exacerbate market volatility and have long-term negative impacts on cryptocurrency market stability. The Bitcoin in question was seized from an investigation into the illegal website Movie2k.to.
Cotar suggested that the German government reconsider this strategy and discuss with the U.S. the use of Bitcoin as a strategic reserve currency. She invited officials to attend the “National Bitcoin Strategy” lecture on October 17, led by Bitcoin strategist Samson Mow, to discuss how to utilize Bitcoin to strengthen the national economy.
South Korea’s FSS Introduces New Exchange Monitoring System to Promote Market Stability
The Financial Supervisory Service of South Korea (FSS) announced the launch of a new monitoring system aimed at enhancing supervision of cryptocurrency exchanges to prevent fraudulent trading. Local exchanges will establish continuous monitoring systems to report irregular transactions regularly to ensure compliance with their legal obligations.
This initiative will be implemented in sync with the first cryptocurrency investor protection regulation framework, the Virtual Asset User Protection Act, on July 19. Additionally, the Digital Asset Exchange Association (DAXA) and 20 local exchanges have released the “Best Practices Guide for Supporting Digital Asset Trading,” aiming to provide a more lenient review plan for assets that have been compliantly traded in overseas markets for over two years.
These measures reflect South Korea’s proactive attitude towards cryptocurrency regulation, aiming to enhance market stability, protect investors, and combat financial crimes.
Report: MiCA Expected to Become Foundation for Global Stablecoin Regulation
The Digital Euro Association released a report analyzing the impact of the European MiCA regulation on stablecoin issuance. The report suggests that MiCA could become the foundation for global stablecoin regulation but also provides suggestions for improvement. It proposes establishing a global institution similar to the Basel Committee to unify stablecoin standards and gain insights from MiCA implementation.
The report criticizes MiCA’s stringent regulations, such as requiring ordinary stablecoins and significant stablecoins to hold reserve funds of 30% and 60% respectively, impacting profitability and increasing credit risk. The incident of Circle’s USDC decoupling due to the collapse of Silicon Valley Bank serves as an example.
The report also discusses the ambiguity of anti-money laundering (AML) regulations, suggesting the need for further clarity. Moreover, international stablecoin issuers face challenges in complying with MiCA, such as the requirement to hire EU-authorized custodians and addressing the complexity of dual issuance structures.
The report disagrees with MiCA’s scale restrictions on using foreign currency electronic money tokens in the EU, suggesting that this could weaken the USD/EUR trading pair, which is not the case in reality. Overall, the report highlights many gray areas and topics that need consideration in the EU and elsewhere.
Blockchain Applications
Hamilton Introduces Tokenized U.S. Treasury Bonds on Bitcoin Layer 2 Network
Cryptocurrency startup Hamilton has launched tokenized U.S. Treasury bonds (HUST) on the Bitcoin Layer 2 blockchain, with the first transaction completed on July 4. HUST will be used on Bitcoin Layer 2 solutions like Stacks, Core, and BoB.
Hamilton claims this is a pioneering effort that combines the stability of the Bitcoin network with the reliability of the U.S. dollar, offering returns better than stablecoins. Hamilton CEO Kasstawi stated that this marks a significant step towards financial independence, providing critical investment opportunities for emerging markets. The total locked value of tokenized real-world assets (RWAs) has reached $8 billion, benefiting from the scalability and functionality enhancements of the Bitcoin Layer 2 network.
Web3 Users Reach Historic High of 10 Million in Q2
According to the latest report from the blockchain analytics platform DappRadar, the daily active unique wallet (dUAW) count for Web3 applications in the second quarter reached a record high of 10 million, a 40% increase from the first quarter. The report highlights significant user growth in social and blockchain gaming sectors, with the non-fungible token (NFT) market trading volume reaching $40 billion, while the total locked value (TVL) of decentralized finance applications (DeFi) decreased by 4%. DappRadar warns that growth may be influenced by temporary airdrop activities, emphasizing the importance of providing quality user experience and a robust development roadmap.
Baanx: Development of Web3 Infrastructure like Account Abstraction Drives Adoption of Crypto Debit Cards
Baanx’s Chief Business Officer, Simon Jones, discussed the key role of crypto debit cards in driving cryptocurrency adoption. Baanx has partnered with companies like Ledger, 1inch, and Mastercard to launch the Crypto Life Card, allowing users to spend cryptocurrencies at 90 million merchants globally. The card is currently available in 32 countries and plans to expand to the U.S. and Latin America.
