Bitcoin investors afraid

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Bitcoin stumbles to $60,000 price level as U.S. inflation concerns rise

Key points:

  • U.S. inflation concerns worsen after Jerome Powell's speech

  • The Fed hesitates to lower interest rates in the near future

News - Bitcoin's price hovered around $60,000 on 3 July after the outlook for U.S. inflation worsened. Data showed Bitcoin attempting to regain strength following a 2% decline at the previous day's close.

This drop erased gains made over the weekend and pushed Bitcoin to a local low of $60,561 on Bitstamp. The negative sentiment intensified after Jerome Powell, Chairman of the U.S. Federal Reserve, delivered a speech in Portugal regarding the economy and monetary policy.

What did he say? Powell's remarks indicated the Fed's hesitation to lower interest rates in the near future. This move is closely watched by investors in cryptocurrencies and other risk assets. Powell stated the Fed's need for clearer signs of inflation stabilizing before considering a rate cut.

Financial markets reacted by slightly lowering the odds of a rate cut at the Federal Open Market Committee (FOMC) meeting in September. CME Group's FedWatch Tool showed the probability of a rate cut remaining around 65% at the time of writing.

How did the investors react? Bitcoin investors watched in frustration as the price returned to the lower end of a familiar trading range. Analysts observed that Bitcoin had recently filled a "gap" in CME futures prices, which had emerged during the weekend's price increase.

South Korean exchanges begin review of 1,333 cryptos under new laws

Key points:

  • Mass cryptocurrency delistings quite unlikely in South Korea

  • 1,333 tokens to undergo review under new investor protection laws

News - South Korean cryptocurrency exchanges have calmed anxieties regarding potential mass token delistings under the country's new digital asset regulations.

A consortium of 20 exchanges, the Digital Asset Exchange Alliance (DAXA), addressed these concerns in a statement recently. They clarified that while 1,333 cryptocurrencies will be reviewed over the next six months as part of the new investor protection laws, a mass delisting event is improbable.

A detailed explanation - These new laws, coming into effect on 19 July, mandate South Korean exchanges, including giants like Bithumb and Upbit, to evaluate all listed tokens. DAXA has created best practice guidelines in collaboration with these exchanges to ensure a standardized approach to reviewing and potentially delisting cryptocurrencies.

The guidelines focus on assessing token issuers based on factors like reliability, user protection mechanisms, and adherence to regulations. Notably, a more relaxed "alternative screening plan" will be implemented for established cryptocurrencies that have been traded for over two years on "eligible overseas virtual asset markets with sufficient regulation."

South Korea plays a major role in the global cryptocurrency market. Upbit, the country's leading exchange, ranks among the top 20 by daily volume, processing $889.3 million in the last 24 hours according to CoinGecko.

Phishing scam hits Blur marketplace, user loses NFTs worth $240,000

Key points:

  • Phishing scam on Blur marketplace led to a user losing $240,000 in NFTs

  • Scam exploited a loophole in Blur's private listing system

News - A sophisticated phishing scam on the Blur NFT marketplace has resulted in a user losing hundreds of thousands of dollars worth of valuable digital assets.

The victim, whose identity remains undisclosed, fell prey to a scheme that exploited a loophole in Blur's listing system.

The stolen collection included six Bored Ape Yacht Club NFTs, 40 Beanz, and three Elementals. While listed at a price of one wei (the smallest unit of ether), the actual value based on current floor prices is estimated at around $239,676.

Details of the scam - According to 0xQuit, a Solidity developer and auditor, the scam capitalized on a vulnerability in Blur's private listing functionality. Blur typically prohibits private sales, but the attacker manipulated the NFT royalty settings, circumventing the public accessibility requirement.

0xQuit suggests the scam likely involved a phishing website, potentially promoted by a fake account on social media offering free NFT mints or airdrop checks. The victim was likely tricked into signing a malicious action on the website, compromising their account security.

This incident highlights the ongoing challenges faced by NFT marketplaces and users in combating scams. Just last month, three UK citizens were charged for a 2021 scam involving the "Evolved Apes" NFT collection.

Hong Kong regulators to review cryptocurrency rules amid industry shifts

Key points:

  • Hong Kong regulators signal openness to adapting crypto regulations

  • HKMA and SFC will review requirements based on market developments

News - Hong Kong's regulatory stance on cryptocurrency is evolving alongside the industry itself. In a parliamentary session on 3 July, Christopher Hui, Secretary for Financial Services and the Treasury, indicated that regulators would be flexible in their response to crypto.

Responding to questions from a lawmaker, Hui stated that the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) would "keep in view market developments and review the requirements on virtual asset (VA)-related activities as appropriate." This suggests a willingness to adapt regulations as the crypto landscape changes.

What’s more? The comments come after a period of uncertainty. In May, several major global exchanges, including OKX, Gate.io, and HTX, withdrew their applications for licenses in Hong Kong, citing concerns over the SFC's licensing process.

Lawmaker Duncan Chiu expressed criticism of the "excessively stringent" licensing regulations, arguing that the govt. discouraged major players from entering the Hong Kong market.

Hui did clarify that licensed corporations and registered institutions already have the flexibility to distribute crypto-related products after notifying regulators.

Did you know?

  • On the Ethereum network, every action you take (like sending money) requires a small fee called "gas." This fee pays for the computer power needed to process your transaction.

  • Elon Musk has a lot of pull when it comes to cryptocurrency prices, especially Dogecoin. But of late, DOGE's prices to Musk's comments haven't been reacting the way it did a few years back.

  • Mining dominance in Bitcoin shows how much a country or area contributes to the computer power of the network. It helps see where miners are and their impact on security.

Top 3 coins of the day

Cardano (ADA)

Key points:

  • At press time, ADA was trading at $0.4117

  • Bulls had the upper hand in the lower timeframe

What you should know - Cardano shows conflicting signs. Despite short-term gains of 6% over the past week, defying the broader market slump, ADA remains entrenched in a downtrend since its 14 March high of $0.81. Currently down 48.52% from that peak, ADA faces an uphill battle. The RSI sits at 50, a neutral zone, but with a downward trend. This suggests the recent bullish momentum might be fading, potentially leading to a reversal. Investors should proceed with caution as ADA approaches a critical juncture. Only a confirmed breakout above the $0.4994 resistance will provide clearer signals of a bullish momentum.

Ethereum Name Service (ENS)

Key points:

  • ENS was 11.3% up over the last seven days, thanks to buyers

  • The token has been on an uptrend since 19 May 2024

What you should know - Ethereum Name Service (ENS) stands out from its competitors with a bullish run. Backed by significant buying volume, ENS surged to $34.58 on 1 July, a level last seen in early January 2022. This impressive climb follows a low of $10 on 13 April 2024, highlighting the resilience of ENS bulls. Trading volume has also spiked significantly over the past month. However, a potential turning point is on the horizon. The MACD indicator suggests a bearish crossover might be imminent, where the MACD line dips below the signal line. This could signal a weakening of the uptrend. Investors should be cautious as ENS approaches this critical juncture.

Litecoin (LTC)

Key points:

  • At the time of writing, LTC was changing hands at $74.50

  • It was up 4.17% over the last seven days

What you should know - Litecoin attempts to recover after a short-term tumble. LTC bulls faced a blow when the price dropped from $88.64 on 21 May to $67.70 by 24 June. At press time, LTC sits at $74.50, facing resistance in the $83.95-$90 zone. Support lies between $69.45 and $65. The Awesome Oscillator (AO) offers a glimmer of hope. Despite being below the neutral line, the indicator shows a green histogram. This suggests a potential continuation of the uptrend for a few more trading sessions. However, a confirmed breakout above resistance or a drop below support will provide more clarity on LTC's future direction.

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