Crypto Market Update: Top-Performing Cryptocurrencies
Crypto Market Update
Last week, the crypto market update remained mostly sideways with minimal movement due to the absence of significant crypto or macro factors. However, there were some notable events. The Personal Consumption Expenditures Index (PCE) for May came in lower than expected, suggesting the possibility of the Federal Reserve easing monetary policy sooner than anticipated.
SEC Deems Bitcoin ETF Filings Inadequate: Market Downturn and Liquidations
Additionally, the SEC deemed recent spot Bitcoin ETF filings as inadequate, causing a brief market downturn and liquidations of over-leveraged long positions.
Bitcoin’s price was not significantly affected by these events, as it has shown less correlation with traditional stocks in recent times. However, it is worth noting that Bitcoin’s dominance slightly decreased while Ethereum’s dominance increased, possibly indicating a rotation of profits from BTC to ETH.
Shifting Landscape of Cryptocurrency Dominance: Bitcoin vs. Ethereum
Ethereum’s strength has been lacking in recent weeks, evident from a bearish monthly close against BTC. This weakness could continue, especially if the SEC’s proposed rule to expand the definition of exchanges to include DeFi protocols is announced and enforced. Nevertheless, institutional investors are preparing to capitalize on the potential impact of this rule by planning to trade an ETH-BTC Futures product on the Chicago Mercantile Exchange (CME).
Institutional Interest and Futures Trading: ETH-BTC Futures and Hong Kong’s Crypto Trading Legalization
Meanwhile, Hong Kong has recently legalized crypto trading for retail investors, and HSBC’s Hong Kong branch has expanded its support for Bitcoin and Ethereum futures. Coinbase’s layer 2 scaling solution for Ethereum, called “Base,” is also set to launch soon, which could enhance Ethereum’s scalability and open the door to payments as a major use case.
Ethereum’s Performance and Concerns: Bearish Monthly Close and Vitalik Buterin’s Security Concerns
Vitalik Buterin, the creator of Ethereum, reportedly stakes only a small portion of his ETH due to security concerns, highlighting the ongoing challenges Ethereum faces. However, this also suggests that ETH’s price has room to grow, provided regulatory crackdowns on staking do not occur.
Binance’s Challenges and Expansion: Regulatory Scrutiny and Middle East Expansion
Binance, the largest cryptocurrency exchange globally, has been facing regulatory scrutiny and has been pulling out of several countries due to banking partner issues. Its troubles continued as it lost its banking partner for Euro bank transfers starting from September 25th. However, Binance remains optimistic, with institutional partners believing it will overcome these challenges. The exchange is also looking to establish a presence in the Middle East, particularly the UAE, as some executives believe it will play a crucial role in the future of crypto.
Top-Performing Cryptocurrencies
In terms of top-performing cryptocurrencies last week, Compound (COMP), Bitcoin Cash (BCH), eCash (XEC), Bitcoin SV (BSV), and Flow (FLOW) saw price increases. These gains were attributed to various factors such as development updates, South Korean traders’ activity, and upcoming smart contract upgrades. However, the price movements of these cryptocurrencies remain uncertain, with key price levels and resistance to overcome.
Regulatory Challenges and Push for Financial Freedom
Overall, the crypto market continues to face regulatory challenges and uncertainties, but the industry is pushing boundaries to redefine the possibilities for financial freedom. It is essential to ensure the security of your cryptocurrencies by using a hardware wallet for self-custody.
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