Daily Market Update: July 5, 2024

July 5, 2024

BTC is currently trading around $55,500 and ETH around $2,950. Notable gainers in the last 24 hours are EGLD, OM, and BONK. The global crypto market cap is $2.14T, down 3.1% over the last day.  DeFi Total Value Locked is ~$84b and BTC dominance is around 55%.

Crypto prices continue to fall due mainly to worries around a wave of potential selling over the coming days.  Chief among concerns are Mt Gox disbursements, where transfer activity by Mt Gox wallets is increasing and the Mt Gox trustee confirmed that payments to creditors has begun.  While firms such as Galaxy and CoinShares have penned thoughtful analyses arguing Mt Gox selling will be less than expected, traders are clearly getting out of the way of this risk event that will see Mt Gox return up to $8b in BTC through the end of October.  Also weighing on Bitcoin is the selling by Germany, which continues to send portions of its now $2.2b portfolio to exchanges, most recently having sent $75m to an exchange a day ago.  Finally, note that these events have brought attention to other potential sources of selling, such as from the US government, which holds ~$12b in Bitcoin and recently inked a deal with Coinbase Prime, as well as $3b in token unlocks slated for this month.  All in, Bitcoin hit its lowest price since February, and recent price action caused over $600m of total crypto liquidations over the last day.

Meanwhile, equity markets are mixed after an unremarkable US employment report that showed June payrolls growing marginally more than expected, the unemployment rate increasing slightly, and annual average hourly earnings growth meeting consensus.

Notable news includes: The BIS approved frameworks for banks to disclose crypto exposure; South Korea unveiled a real-time monitoring system for crypto fraud; the US SEC is reportedly investigating multiple crypto venture capital firms for potentially acting as unregistered securities dealers; the United Nations and ICP will launch a digital credentials pilot in Cambodia; crypto wallet provider Tangem collaborated with Visa to integrate hardware wallet technology and Visa payment cards; Coinbase partnered with financial services provider Greengage to originate SME debt using Coinbase’s Diamond protocol; Donald Trump has reportedly discussed using Bitcoin as a strategic reserve asset; Bitcoin Core developers launched a critical bug disclosure policy to communicate Bitcoin security vulnerabilities; Aptos launched keyless wallets that use ZK proofs to verify identity; restaking protocol Symbiotic passed $1b in deposits; and, friend.tech decided not to migrate from the Base L2.

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Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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