Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 20, 2023
Crypto Market Update
Written by Van
Table of Contents:
Banking and Regulatory Updates
- Deutsche Bank Ventures into Crypto with Custody Services Plan
- IMF's Cross-Border Payment Concept Sparks Controversy
Crypto Exchanges and Platforms
- EDX Markets Crypto Exchange: Backed by Traditional Finance and Live
- Bankrupt FTX Crypto Exchange Faces Huge Legal and Advisory Costs
- Gemini Eyes APAC Expansion Amid US Regulatory Actions
- Binance to Boost Transaction Speed with Bitcoin Lightning Network Integration
Market Trends and Events
- Bitcoin Dominance Crosses 50% Amid Market Turbulence
- Bitcoin Whales Accumulate 131,600 BTC Amid Market Slump
- GBTC Shares Surge Amid Bitcoin ETF Conversion Optimism
- Litecoin Enthusiasm Spikes Ahead of Halving Event
- Stablecoin Protocol Reserve Invests $20M in Yield Farming Apps
- Curve DEX Explores Addition of WBTC and Ether Collaterals
- Cardano Blockchain Upgrade 8.1.1 Released, ADA Stable at 25 Cents
International Updates and Cases
- Romanian Prosecutors Seize Bitcoin Assets of Accused Andrew Tate
- IMF's Potential Ripple Inclusion Spurs Mixed Reactions
Deutsche Bank Ventures into Crypto with Custody Services Plan
Deutsche Bank, Germany's largest lender, has filed an application to obtain a license for providing digital asset custody services, signaling its entry into the cryptocurrency market. The move is part of the bank's strategy to boost fee income and tap into the growing mainstream adoption of digital assets. If authorized, Deutsche Bank will be able to offer custody services for cryptocurrencies, enabling secure storage and management of digital assets for institutional and individual investors.
IMF's Cross-Border Payment Concept Sparks Controversy
The IMF's director of the monetary and capital markets department, Tobias Adrian, presented a new platform concept for cross-border payments, involving a single ledger to record CBDC transactions. However, members of the crypto community reacted strongly, interpreting the move as a "power grab" and arguing against centrally-controlled money.
EDX Markets Crypto Exchange: Backed by Traditional Finance and Live
EDX Markets, a cryptocurrency exchange backed by traditional finance giants such as Citadel and Fidelity, has started operating. The exchange offers mainstream cryptocurrencies like BTC, ETH, and LTC, but only caters to institutional clients. It recently completed an investment round with new equity partners, including DV Crypto and GSR Markets. EDX will launch a clearinghouse business later this year to improve settlement processes for investors.
Bankrupt FTX Crypto Exchange Faces Huge Legal and Advisory Costs
Bankrupt crypto exchange FTX faces $121.8 million in legal and advisory costs, with law firm Sullivan & Cromwell charging the highest amount. Former clients are pushing for a relaunch of FTX under new leadership, aiming to restore value to customers. Efforts to revive the exchange are gaining traction amidst mounting costs.
Gemini Eyes APAC Expansion Amid US Regulatory Actions
Gemini, a New York-based cryptocurrency exchange, plans to expand in the Asia-Pacific (APAC) region, considering it as the next growth frontier for crypto. The company aims to establish itself outside of the U.S., which has experienced increased regulatory actions against crypto exchanges.
Gemini will increase its headcount in Singapore and open an engineering base in India. Customers in the APAC region will have access to trading cryptocurrencies using Singapore dollars, Hong Kong dollars, and Australian dollars on the Gemini platform.
Binance to Boost Transaction Speed with Bitcoin Lightning Network Integration
Binance plans to integrate the Bitcoin Lightning Network for faster and cheaper deposits and withdrawals. This move aims to address scalability and speed issues associated with the Bitcoin network. However, Binance is also facing regulatory challenges, as its UK subsidiary withdraws registration and it scales back operations in Europe.
Bitcoin Dominance Crosses 50% Amid Market Turbulence
Bitcoin's dominance breached the 50% mark, with its market capitalization standing at $519 billion and accounting for half of crypto's $1.1 trillion market cap. Ether's market dominance has been steady at around 20%.
Meanwhile, China's rate cuts fail to boost traditional markets, leaving Bitcoin unchanged at $26,819 before increasing to nearly $27,400. Investors skeptical of cuts' effectiveness, hope for larger stimulus. Potential $140 billion stimulus package may increase global liquidity and boost Bitcoin.
Bitcoin Whales Accumulate 131,600 BTC Amid Market Slump
Bitcoin whales, holders of 1,000 to 10,000 BTC, have accumulated 131,600 BTC, worth over $3.5 billion, in the past 11 weeks. Their collective holdings reached a seven-week high, despite Bitcoin's price decline and stagnation. In the last week alone, they added over 60,000 BTC, valued at nearly $1.62 billion.
On-chain analytics firm Glassnode estimates investors may have to wait 8-18 months before bitcoin hits a new all-time high based on historical transition phases. The current transition period has been ongoing for 221 days, lower than the previous cycle’s 458 to 770 days, meaning if the assumption that November 2022 was the bottom holds true, BTC could hit new highs but may still take time.
GBTC Shares Surge Amid Bitcoin ETF Conversion Optimism
Grayscale Bitcoin Trust (GBTC) shares rose above $16, the highest since May 10, driven by optimism about converting the trust into an exchange-traded fund (ETF) following BlackRock's filing for a Bitcoin ETF.
The discount on GBTC narrowed to 33%, its lowest level since September 2022, as investors anticipate future fund redemptions and a potential victory in Grayscale's lawsuit against the SEC. Rumors of Fidelity filing for a BTC ETF or acquiring Grayscale also circulated, although Fidelity denied any public announcement.
Litecoin Enthusiasm Spikes Ahead of Halving Event
Litecoin's upcoming halving event on August 26 has led to a surge in wallet addresses and active users. Previous halvings didn't immediately result in significant price surges, but the impact on supply and demand can be a factor. The launch of the LTC-20 standard and rising demand also contribute to the coin's activity. Halving events are important for tokenomics and bring changes in supply and demand.
Stablecoin Protocol Reserve Invests $20M in Yield Farming Apps
Stablecoin protocol Reserve will invest $20 million in the governance tokens of yield farming apps Curve, Convex, and Stake DAO. The investment aims to boost liquidity for Reserve's stablecoins and increase its voting power. It may also enable new features such as collateralized loans and wallet products.
Curve DEX Explores Addition of WBTC and Ether Collaterals
Curve, a decentralized exchange (DEX) focused on stablecoins, aims to expand collateral assets for its crvUSD stablecoin. It proposes adding wrapped Bitcoin (WBTC) and native Ether with $200 million debt limits. Voting is underway. Curve is the second-largest DeFi DEX with $4 billion locked.
Cardano Blockchain Upgrade 8.1.1 Released, ADA Stable
Developers released an upgrade (8.1.1) for the Cardano blockchain, aiming to reduce epoch transitions and improve network processes. The upgrade addresses issues with peer-to-peer network communications and the Cardano-based domain name system. ADA token price remains stable at 26 cents.
Romanian Prosecutors Seize Bitcoin Assets of Accused Andrew Tate
Andrew Tate, currently facing serious accusations, had his assets in Bitcoin seized by Romanian prosecutors. Contrary to initial reports of $300 million, the actual amount seized was approximately $560,000 (21 BTC), along with luxury cars, watches, properties, and shares. Tate and his brother are set to face trial.
IMF's Potential Ripple Inclusion Spurs Mixed Reactions
The IMF plans to create a platform for cross-border transactions using central bank digital currencies (CBDCs). In a March 2023 report, Ripple is mentioned as a potential solution due to its advantages, such as being a regulated private entity and its compatibility with financial integrity standards. The XRP army has also found previous collaborations between Ripple and the IMF.
Indonesia has expanded its cryptocurrency adoption by including Ripple's XRP and 500 other digital assets, sparking mixed reactions about XRP's potential and government involvement.
Top Altcoin Gainers and Losers
Stacks STX (+14.02%)
Kaspa KAS (+12.63%)
Optimism OP (+10.36%)
Trust Wallet Token TWT (-2.69%)
BitTorrent New BTT (-2.36%)
Gatechain Token GT (-2.10%)
NFT Market Map
Phishing attacks targeting non-fungible tokens (NFTs) have increased, with young people, including high school students, orchestrating the attacks. Discord servers have been compromised, resulting in the loss of $1 million worth of NFTs. Around 900 Discord servers have fallen victim to these attacks, affecting over 32,000 wallets and resulting in a collective loss of $73 million in stolen NFTs and tokens. The attackers use their proceeds to buy items like laptops, phones, designer clothes, and Roblox skins.
This article has been refined and enhanced by ChatGPT.