Cryptocurrency Market Overview 06.07.2023
News block
1. Difficulties of Crypto Regulation in the EU
🔸 On the one hand
According to the European Commission, 20 blockchain projects were selected in the first group to receive legal advice from regulatory authorities.
The initiative, first unveiled in 2020, aims to bridge the regulatory gap between European countries and crypto companies.
According to the European Commission, 20 projects were selected in the first group, led by companies in the field of finance and capital markets, telecommunications and information technology, global trade, transport and intersectoral projects.
This blockchain sandbox will work in combination with other structures, in particular with the EU digital financial platform and artificial intelligence sandboxes, which will be implemented in accordance with the Law on Artificial Intelligence.
The initiative will select new projects every year until 2026.
🔸 On the other hand
Denmark's financial regulator has stated that local banks are not allowed to store cryptocurrency. The Danish Financial Supervision Authority (DFSA) has officially ordered the local investment bank Saxo Bank to get rid of digital assets.
The regulator stated that the cryptocurrency activities of Saxo Bank "are outside the legal sphere of business of financial institutions," referring to section 24 of the Danish Law on Financial Business.
According to DFSA, Saxo Bank offers its clients the opportunity to trade a number of cryptocurrency products through its platform. The firm also offers several cryptocurrency exchange-traded funds and exchange-traded notes, the regulator noted, adding that "crypto assets can be speculated."
The DFSA announcement also mentions the EU-wide rules governing the crypto market, known as MiCA. The Danish regulator noted that the MiCA rules will fully come into force only from December 2024, which means "this area remains unregulated for the time being."
2. Circle is interested in the Japanese stablecoin market
Circle co-founder and CEO Jeremy Aller said that given that the Japanese legislation governing stablecoins came into force on June 1, Circle is considering the possibility of issuing stablecoins in this country. Aller expects that the Japanese stablecoin market may increase significantly when stable coins are more widely used in cross-border trade and foreign exchange transactions.
Overview of the crypto market
🔸 The current capitalization of the crypto market is 1.241 trillion
🔸 Trading volume for the last day is $42.04 billion (+24.7%)
🔸 BTC Dominance 47.9%
🔸 Fear and Greed Index:
- today 56, yesterday 61, a week ago 56
where, 0 is extreme fear (may be a sign that investors are too scared - it's often a good time to buy), and 100 is extreme greed (the market needs correction).
The media reported that candidates for the launch of a spot bitcoin ETF will meet with the SEC next week. And in his last interview, Larry Fink, chairman and CEO of BlackRock, called bitcoin an international asset. Fink suggested that investors could turn to BTC as insurance against inflation or devaluation of certain currencies. It is noteworthy that a few years ago, the head of BlackRock spoke about bitcoin in a negative way.
The approval of the bitcoin ETF (it is difficult to predict specific terms here) will strengthen the trend towards a decrease in the number of BTC available for trading on crypto exchanges - currently this indicator has fallen to 2.26 million BTC, which is the lowest since March 14, 2018:
Growth of open interest in BTC
Open interest in bitcoin futures contracts on the Chicago Mercantile Exchange (CME) is now at its highest level since March 2022. So, according to Coinglass, contracts worth $2.98 billion have been opened on CME, and the total open interest in BTC on derivatives exchanges has grown to an annual maximum:
- In two weeks, the futures market grew by $3 billion - from $11.4 billion to $14.4 billion.
- The surge began around June 19, a few days after BlackRock applied for a spot ETF.
- The price of BTC has increased by more than 20% since BlackRock applied.
