Daily Market Update: July 1, 2024

July 1, 2024

BTC is currently trading around $62,700 and ETH around $3,450. Notable gainers in the last 24 hours are ENSZRO, and EGLD. The global crypto market cap is $2.44T, up 2.0% over the last day.  DeFi Total Value Locked is ~$96b and BTC dominance is around 55%.

Crypto prices are slightly higher since Friday, with several notable news items. First, the US Supreme Court overturned the Chevron Deference, giving federal courts more say in determining the scope of what administrative agencies can do and may embolden digital assets companies as they defend against agency actions.  Second, a US court ruled against Binance’s attempt to dismiss the majority of claims made against it by the SEC though did dismiss claims relating to BNB secondary market sales, sales associated with the BUSD stablecoin, and Binance’s passive income feature Simple Earn.  In addition, the SEC sued Ethereum development company Consensys, alleging that the MetaMask wallet is an unregistered broker and that stETH and rETH are securities.  Lastly, the SEC reportedly asked prospective spot Ethereum ETF issuers to re-file their S-1 forms by July 8, delaying the launch of the Ethereum ETFs to beyond that date.

Looking ahead, investors will be watching various economic data releases this week including European inflation on Tuesday, the FOMC minutes on Wednesday, and US employment on Friday.  In addition, various central bank officials will give speeches throughout the week, and the US markets will be closed on Thursday for the July 4th holiday.  Beyond the week, July is set for various high impact events, including over $3b of tokens set to unlock during the month, the commencement of the Mt Gox disbursements that will see ~$9b of BTC returned to creditors through October, and the likely launch of the US spot Ethereum ETFs.

Notable news includes: The US Treasury completed new rules requiring custodial crypto brokers to report sales and trades of digital assets to the IRS; the EU’s MiCA regulation for stablecoins took effect today; the Banque de France and HKMA signed an MoU to cooperate on wholesale CBDCs and tokenization; the German government sent an additional $94m of BTC to exchanges; Sony Group acquired crypto exchange Amber Japan; Coinbase filed to launch futures contracts on Avalanche, Chainlink, Polkadot, Stellar, and Shiba Inu; 21Shares filed for a spot Solana ETF following VanEck’s filing the day prior; a securities filing revealed meme stock trader Roaring Kitty bought 6.6% of online pet supplies company Chewy Inc; and, Abra launched treasury services for corporates that want to hold digital assets.

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Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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