On August 22nd, the cryptocurrency market was relatively volatile. $Bitcoin (BTC.CC)$ It once surged above $61,000 and has now fallen back to $60,735. $Ethereum (ETH.CC)$ It is currently down 0.35% at $2,621.
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Senior campaign advisor: Harris will support policies that help the growth of digital assets.
Brian Nelson, a senior campaign advisor for the Democratic Party, stated in an interview with Bloomberg that Vice President Harris plans to support measures that help the development of the digital asset industry. Nelson serves as the Deputy Secretary of the U.S. Department of the Treasury for Terrorism and Financial Intelligence. He stated that Harris will "support policies that ensure the continued development of emerging technology industries." He also noted that the industry has been calling for "stable rules."
Opinion: Signs of recovery are beginning to emerge in the crypto lending market.
In 2022, the crypto lending market experienced major events such as the LUNA/UST crash, Three Arrows Capital bankruptcy, and FTX closure, leading to the closure of many major lending institutions. However, this period exposed problems in the market structure and provided a blueprint for building a healthier ecosystem in the future. Craig Birchall, Product Manager at Membrane, points out that signs of recovery in the market began to emerge in 2024. The launch of Bitcoin ETFs in the USA has driven the expansion of institutional lenders.
For example, the loan volume of Coinbase Prime increased by 75% quarter-on-quarter in the first quarter of 2024, institutional loans reported by Ledn increased by 400%, and the loan booking volume of Membrane was three times that of the whole year of 2023. Birchall emphasized that risk management is of paramount importance and detailed due diligence and asset verification have become the standard. Overcollateralized loans have become mainstream, while unsecured loans are limited to borrowers with sufficient capital. New entrants such as Swiss banks and traditional financial institutions are driving market development, while custody institutions and innovative platforms are also expanding their products and tools. Birchall believes that the continued growth of the crypto lending market depends on a balance between innovation and risk management to build a more robust and efficient market.
Bitcoin hash rate rebounds for the first time since halving.
According to the CryptoQuant Hash Ribbons indicator, the Hash Ribbons indicator has just issued a signal that the miner's surrender has ended, while the hash rate has reached a new peak of 638 exahashes (EH/s) per second. This is the first rebound since the halving of Bitcoin. CryptoQuant explained, "Although the indicator is not intended to accurately indicate the bottom of the price, it typically signals a decrease in miner selling pressure before the price rises."
CryptoQuant: Indicators show weak demand for Bitcoin as hype around Bitcoin ETF slows down.
According to CoinDesk, on Wednesday, blockchain analysis firm CryptoQuant stated in a report that demand for Bitcoin has slowed significantly since early April and even dropped into negative territory this month. CryptoQuant cited its Demand Index, which tracks the daily change between the total daily Bitcoin block rewards and the daily change in Bitcoin held for a year or longer. The increase in Bitcoin sold by large holders indicates a weakening demand for the asset, as Bitcoin rewards obtained by miners are typically sold to cover operational costs. The company stated, "The total holdings of large Bitcoin investors have also seen a slowdown in growth, decreasing from a monthly 6% in March to the current 1%. The slowdown in Bitcoin demand aligns with the decrease in daily average purchases of the US spot Bitcoin ETF, which has decreased from 12,500 BTC in March to an average of 1,300 BTC last week."
The company stated, "The total holdings of large Bitcoin investors have also seen a slowdown in growth, decreasing from a monthly 6% in March to the current 1%. The slowdown in Bitcoin demand aligns with the decrease in daily average purchases of the US spot Bitcoin ETF, which has decreased from 12,500 BTC in March to an average of 1,300 BTC last week."
However, CryptoQuant pointed out that during the price weakness, some indicators remain strong. Long-term holders (wallets holding the asset for more than six months) continue to accumulate Bitcoin at 'unprecedented levels', earlier this week, the total balance of this group reached a historical high of 391,000 BTC for the month. In addition, the total market value of stablecoins has surged to a historical high of $165 billion, which is a historic bullish signal indicating increased liquidity in the cryptocurrency market, which typically leads to price increases.
Report: Nearly half of the corporate election spending in the usa election cycle of 2024 comes from cryptos.
According to a report released by the corporate influence monitoring organization Public Citizen on Wednesday, nearly half of the corporate political donations during the 2024 election cycle come from cryptocurrency companies. Based on data provided by the government transparency organization OpenSecrets, Public Citizen's report found that to date, 48% of corporate election spending comes from cryptocurrency companies such as Ripple and Coinbase. The majority of these donations flowed into super political action committees (PACs) supporting cryptocurrencies, such as Fairshake.
The report highlights that out of the $0.203 billion raised by Fairshake, $0.1079 billion came directly from cryptocurrency companies, the rest from prominent figures in the technology and crypto industries, including substantial donations from personalities like the Winklevoss brothers and Coinbase CEO, Brian Armstrong.
CryptoQuant: Daily average purchases of BTC Spot ETF plummet, but long-term holders continue to accumulate BTC.
The latest report from the crypto analytics company CryptoQuant shows a significant slowdown in Bitcoin demand indicators since early April, even dropping to negative levels this month, sparking concerns about the short-term outlook for Bitcoin. Despite the launch of several Bitcoin spot ETFs in January this year, their popularity is waning. Data shows that the daily average purchases of Bitcoin Spot ETFs plummeted from 12,500 coins in March (when the price of Bitcoin exceeded $70,000) to just 1,300 coins last week. Since their launch, Bitcoin ETFs have attracted a net inflow of $17.5 billion, but the growth rate has slowed considerably. The total holdings of large Bitcoin investors have also dropped from a monthly 6% in March to the current 1%.
However, there are still positive factors in the market. Long-term holders (wallets holding for over six months) continue to accumulate Bitcoin at record levels, with their total balance reaching a monthly high of 391,000 BTC this week. At the same time, the total market value of stablecoins has risen to a historical high of $165 billion, usually signaling increased liquidity in the crypto market, which could lead to price increases.
K33 Research: The Bitcoin derivatives market shows a risk signal of 'short squeeze', which may trigger a significant rebound in Bitcoin.
According to Bloomberg, K33Research stated that the signal in the Bitcoin derivatives market shows an increasing risk of 'short squeeze', which could trigger a significant rebound in Bitcoin. This indicator is the funding rate of Bitcoin perpetual futures, which helps measure the speculative sentiment of long or short positions. K33Research stated that the seven-day average annualized funding rate as of August 20th is the lowest level since March 2023, indicating a dominant bearish bet.
K33Research analysts Vetle Lunde and David Zimmerman wrote in a report, 'The perpetual swap funding rate has been negative for the past week, while the open interest has increased sharply, indicating aggressive shorting behavior, creating a favorable situation for short-term squeezing structurally.' In this short-term squeeze, unexpected price jumps force fast money traders to close out short positions, further driving a rebound in prices. The sentiment in the Bitcoin market has been very low recently: experiencing losses in August and struggling to remain above $60,000. Meanwhile, global stock market indices have risen to record highs, and gold has also reached new highs.
Binance CEO: Due to the company's good financial condition, there is currently no consideration of an IPO.
According to CoinDesk, Binance's newly appointed CEO, Richard Teng, stated that an initial public offering (IPO) is not being considered at the moment due to the good financial condition of the company. Since taking over as CEO last year, Teng has focused on transforming Binance into an institution led by the board of directors and has plans to find a permanent headquarters. Teng emphasized that the company is committed to building better relationships with global regulatory authorities to ensure long-term development in the future. Additionally, Teng confirmed that CZ, the founder of Binance, is no longer involved in the daily operations of the company, although CZ's partner, He Yi, still plays an important role in the management team.
The Hong Kong Securities and Futures Commission warns the public to beware of the 'ICE Global Professional Station', which impersonates another institution and is suspected of engaging in virtual asset-related fraudulent activities.
The Securities and Futures Commission (SFC) of Hong Kong today cautioned the public to beware of a suspicious link. Investors can access the mobile application of "ICE Global Professional Station" through this link. ICE Global Professional Station claims to be a digital asset trading platform and is suspected of impersonating Intercontinental Exchange, Inc., a multinational financial services institution, by using a similar name and logo. ICE Global Professional Station is alleged to be involved in virtual asset-related fraud. One investor reported difficulties in withdrawing funds after depositing them into cryptocurrency products. The SFC stated that the link to the mobile application of ICE Global Professional Station was included in the list of suspicious virtual asset trading platforms on August 21, 2024.
Editor/Somer