Impact of Mt. Gox BTC distribution and Federal Reserve decision on Bitcoin price
Bitcoin’s price remained stable after Mt. Gox transferred $2 billion in BTC on Tuesday, nearing the completion of its $9 billion distribution. A total of 47,229 BTC was moved, with 33,105 BTC possibly destined for BitGo, valued at $2.19 billion. This movement follows transfers to exchanges like Kraken and Bitstamp since July. Analysts suggest the market may be overcoming liquidation concerns, and a Glassnode report indicates creditors might hold their assets long-term.
On Wednesday afternoon, Bitcoin (COIN:BTCUSD) faced volatility due to the Federal Reserve’s interest rate decision and Chairman Jerome Powell’s statement. The Fed maintained the rate between 5.25%-5.50%. Powell mentioned that if data confirms slowing inflation, the Fed might consider rate cuts in the September meeting. The FOMC was optimistic about inflation reduction progress. Bond yields and the dollar rose, with Nasdaq and S&P 500 showing significant gains. Following the decision, Bitcoin briefly dipped before stabilizing, trading at $66,400. After the press conference, Bitcoin rose 0.50% to $66,497.53. With a 6.94% monthly gain in July, BTC has technical support around $65,700.
California DMV digitizes 42 million car titles on Avalanche blockchain
The California Department of Motor Vehicles digitized 42 million car titles on the Avalanche blockchain (COIN:AVAXUSD), modernizing operations. Partnering with Oxhead Alpha, Californians can manage and transfer titles digitally via a mobile wallet app, reducing DMV visits and increasing fraud security. This innovation reflects Governor Gavin Newsom’s commitment to adopting advanced technologies in the public sector.
Riot Platforms increases stake in Bitfarms after dilution plan cancellation
Riot Platforms (NASDAQ:RIOT), a Bitcoin miner based in Texas and Kentucky, purchased about 10 million additional shares of Bitfarms (NASDAQ:BITF), a Toronto-based miner. The stake increased to 15.9%, totaling $159.1 million. The acquisition followed the Ontario Capital Markets Tribunal’s cancellation of a plan that would have diluted Bitfarms shares for entities with over 15% stake. Riot seeks to acquire Bitfarms and has criticized its governance, while Bitfarms evaluates measures to protect its shareholders.
Bitcoin and Ethereum ETF flows on July 30
On July 30, Bitcoin ETFs saw a net outflow of $18.3 million, breaking a streak of inflows since July 23. Grayscale’s ETF (AMEX:GBTC) experienced a significant outflow of $73.6 million, bringing its total outflow to $18.9 billion. Bitwise (AMEX:BITB), ARK (AMEX:ARKB), and Fidelity (AMEX:FBTC) had smaller outflows, while BlackRock’s ETF (NASDAQ:IBIT) stood out with $74.9 million in inflows, raising its total net inflow to over $20 billion.
Ethereum ETFs had a net inflow of $33.7 million, the first since July 23. Grayscale’s ETF (AMEX:ETHE) saw $120.3 million in outflows, while BlackRock (NASDAQ:ETHA) had the largest inflow at $118.0 million. Total Ethereum ETF outflows amounted to $406.4 million so far.
Grayscale launches Mini Trust for Bitcoin after SEC approval
On Wednesday, Grayscale Investment began trading the Grayscale Bitcoin Mini Trust BTC (AMEX:BTC), a smaller version of the Grayscale Bitcoin Trust (AMEX:GBTC), after SEC approval. The new product, traded under the symbol “BTC,” aims to distribute shares to GBTC shareholders as they contribute bitcoin to the trust. Zach Pandl of Grayscale believes there will be high demand for low-cost bitcoin exposure, especially with growing attention on cryptocurrencies and macroeconomic trends.
Bitcoin Conference 2025 to be held in Las Vegas
Following the success of Bitcoin 2024 in Nashville, which brought together 22,000 participants, the Bitcoin Conference 2025 will take place in Las Vegas from May 27 to 29. The change highlights the city’s growth and innovation, becoming a hub for technology and entrepreneurship. Nevada Governor Joe Lombardo and BTC Inc. CEO David Bailey expressed excitement about Las Vegas, promising an event with panels, networking, and tech exhibitions. Tickets are now available for purchase.
During the Nashville Bitcoin Conference, Donald Trump raised $25 million, as reported by journalist Eleanor Terrett. Bitcoin Magazine CEO David Bailey confirmed the amount. The event featured notable figures like the Winklevoss twins and Kid Rock, reflecting the crypto community’s support for Trump, who vowed to fire SEC Chairman Gary Gensler. Trump’s campaign accepted cryptocurrency donations, totaling over $4 million by July 2024.
Ripple’s XRP token reaches four-month high and best monthly performance
Ripple’s XRP (COIN:XRPUSD) rose to an intraday high of $0.6587, its highest in four months, aiming for over 20% appreciation in July. The increase is attributed to growing interest from retail investors and large holders. Trading volume surged 165%, reaching $2.5 billion. Speculations about a possible settlement between Ripple and the SEC could further impact the token’s value.
Aptos Foundation launches stablecoin USDY on the Aptos blockchain
The Aptos Foundation (COIN:APTUSD) launched the USDY stablecoin by Ondo Finance on the Aptos network. USDY, backed by US Treasury bonds, is available to non-US residents and aims to democratize finance and support underserved communities. The asset is not yet registered under the US Securities Act. Additionally, stablecoin issuers like Tether have become major buyers of US debt, attracting attention to the potential impact on the US dollar’s dominance.
Reentrancy attack temporarily suspends Terra network
Terra developers halted the network on Wednesday following a reentrancy attack that drained over $4 million in tokens. The freeze occurred at block 11430400 to apply an emergency fix. The attack exploited a vulnerability disclosed in April, resulting in losses of $3.5 million in USDC, $500,000 in USDT, 2.7 BTC, and 60 million ASTRO.
ZKX protocol ceases operations due to economic unviability
The ZKX protocol, a social derivatives trading platform on Ethereum Layer-2 Starknet, ceased operations due to economic unviability. Founder Eduard Jubany Tur cited low user engagement and declining trading volumes as key factors. Despite raising $7.6 million in June, the ZKE token value plummeted, and operational costs were unmet. All markets were delisted and funds returned to users.
SEC accuses BitClout founder of fraud in crypto asset offering
The SEC sued Nader Al-Naji, founder of BitClout (now Decentralized Social), for raising over $257 million through unregistered crypto asset offerings under false pretenses. Al-Naji is accused of diverting $7 million for personal expenses and creating the impression of decentralization to avoid regulation. The US Attorney’s Office also filed similar charges.
Biden adviser leaves for Kamala Harris PAC
Anita Dunn, senior adviser to Joe Biden, is leaving the White House to join the Super PAC Future Forward, supporting Kamala Harris for the 2024 presidency. The PAC plans to invest around $300 million in Harris’s campaign. Although Dunn recently discussed cryptocurrency regulation, it is unclear if her new role will involve this sector. PACs like Future Forward cannot coordinate directly with political candidates.
BIS and BoE advance stablecoin supervision
The Bank for International Settlements (BIS) and the Bank of England (BoE) introduced a new prototype called Pyxtrial, enabling real-time supervision of stablecoin balance sheets. The system aims to monitor assets and liabilities to prevent mismatches that could undermine trust in stablecoins. This technology is a significant step towards addressing regulatory gaps and ensuring market stability.
Bahamas passes new crypto asset law following FTX collapse
The Bahamas passed the Digital Assets and Registered Exchanges Act 2024 (DARE 2024), aiming for regulatory clarity in the crypto sector and reaffirming its pro-crypto stance. The new legislation covers derivatives, staking, and stablecoins, requiring greater transparency and investor protection. DARE 2024 bans algorithmic stablecoins and limits PoW token mining.
Coinbase expresses concerns over crypto regulation in Australia
Coinbase (NASDAQ:COIN) expressed concerns about Australia’s crypto asset regulation, which they claim is unfavorable for the sector. The company seeks to avoid restrictive regulations based on law enforcement and awaits a new bill from the Australian Treasury by the end of 2024. The ASIC, which has prosecuted major crypto platforms, maintains its stringent approach, while Coinbase aims to influence legislative development and strengthen regulator relations.
Wisconsin launches tracker to combat crypto fraud
The Wisconsin Department of Financial Institutions launched a public tracker to combat financial and cryptocurrency fraud. Between January 2022 and June 2024, residents lost nearly $3.55 million to scams. The tracker uses consumer complaints to identify threats and alert the public, aiming to hinder scammers and protect investors. The tool is regularly updated and allows searches by company name, scam type, or keyword.
Artists sue SEC over NFT classification as securities
Artists Jonathan Mann and Brian L. Frye sued the US SEC, questioning if NFTs (non-fungible tokens) they sell as digital art should be considered securities. Mann, known for creating a new song daily for over 16 years, and Frye, a conceptual artist and law professor, argue that the SEC is overextending securities rules to include digital art. They fear this approach could limit creativity and innovation in the NFT space and seek a court decision to ensure their projects can continue without securities regulation restrictions.