Cryptocurrency Market Overview 11.09.2023
News block
1. Ripple acquires Fortress Trust
According to the latest announcement, Ripple has acquired Fortress Trust. The amount is not disclosed, it is only known that the transaction included "a combination of cash and shares."
The latest acquisition increases the number of regulatory licenses of Ripple, since Fortress Trust has a Nevada Trust license. And a trust company in Nevada with a state license "can act as a custodian of assets," as well as be responsible for "storing cryptocurrencies and services related to digital security offerings."
"Licenses are a powerful tool. The acquisition of Fortress Trust gives us many opportunities both to improve the quality of customer service in our existing products and to explore new, additional products," said Ripple President Monica Long.
Earlier in June, Swan Bitcoin transferred all its assets to its two qualified custodians, one of whom was Fortress Trust.
Recall that in May 2023, Ripple bought the keeper of the cryptocurrency Metaco for $ 250 million. At the time, Ripple called the move a way to promote its growing product line.
2. Crypto: Growing Interest among Asset Managers
Currently, an increasing number of investment companies in the US, UK and Europe are appointing senior executives for their digital asset investment strategies.
According to a recent report by Amberdata, 24% of asset management firms have adopted a digital asset strategy, and another 13% plan to do so in the next two years. The report surveyed 60 investment professionals (asset managers, hedge funds and other investors).
Approximately half (48%) of the study participants include digital assets in their firm's portfolio. Amberdata also predicts that in the next two years, an increasing number of asset managers will continue to pay special attention to digital asset trading strategies.
Despite the ongoing regulatory pressure on the cryptocurrency sector in the United States from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Amberdata predicts a potential positive result in America in the next few years for the entire crypto industry.
3. G20: global regulation of cryptocurrencies
The leaders of the 20 largest economies in the world are working to implement global rules for crypto assets as soon as possible. As part of this initiative, it is planned that the exchange of information between countries on cross-border crypto payments will begin in 2027.
"We call for the early implementation of the Crypto Asset Reporting System (CARF) and amendments to the CRS (General Reporting Standard). We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to determine appropriate and coordinated deadlines for the start of information exchange between the relevant jurisdictions," reads the consensus declaration signed by the G20 leaders.
The crypto asset reporting system was first introduced in October 2022 by the Organization for Economic Cooperation and Development. The document was designed to provide tax authorities with greater transparency regarding cryptocurrency transactions and the persons behind them.
In accordance with the proposed structure, countries will automatically exchange information on cryptocurrency transactions between jurisdictions annually, including transactions on unregulated crypto exchanges and wallet providers.
Overview of the crypto market
🔸 The current capitalization of the crypto market is $1.074 trillion
🔸 Trading volume for the last day is $26.89 billion
🔸 BTC dominance 46.8%
🔸 Fear and greed index:
- today 40, yesterday 40 a week ago 40
where 0 is extreme fear (may be a sign that investors are too scared - often it's a good time to buy), and 100 is extreme greed (the market needs correction).
The cost of the leading cryptocurrencies has hardly changed over the past day. At the same time, in the TOP 100, most altcoins show a decrease in price. The market lacks liquidity and positive news for growth. Against this background, the CryptoQuant analytical platform notes a significant surge in unprofitable outputs of unspent transactions (UTXO):
UTXO (Unspent Transaction Output) - stands for the output of unspent transactions and represents the BTC remaining after the transaction in the blockchain. Using this indicator, CryptoQuant can compare the cost of bitcoin at the time of its appearance on the wallet and withdrawal from the wallet. Currently, a huge part of BTC is at a loss. This loss is comparable to the level of March 2020, when the BTC/USD rate fell by 60%.
Taking into account the current data on UTXO losses, CryptoQuant experts note: "Given that the current level of the "UTXO at a loss" indicator reflects the level of the "Black Swan" event in the period from March to April 2020 (Covid-19), those who are now expecting another "Black Swan" may it's worth thinking about the fact that we have already received it and are in the middle of this event."
