BullionFX Market Report – August 19, 2023

Gold prices touched five-month lows of US$1,889.00 on Thursday, as the US dollar and Treasury yields gained momentum after recent upbeat economic data added weight to expectations that the Federal Reserve would carry on with its policy tightening. Spot gold hovered near its weakest levels since March 15th at $1,888.30.

The recent release of strong macroeconomic data from the United States (US) on Wednesday exerted downward pressure on the price of gold. Investors seek additional momentum from upcoming US economic indicators to gain a clearer perspective on the potential further tightening of monetary policy by the US Federal Reserve. A stronger dollar reduces investors’ appetite for gold by making it more expensive for overseas buyers.

The FOMC minutes also showed that the Committee remains focused on inflation, with some participants suggesting that rates need to move higher to bring consumer prices back to the central bank’s 2% target.

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Bitcoin price, currently trading at $26,400 at the time of writing, took another hit in the past 24 hours, and the asset plummeted to $25,650 for the first time in roughly two months. Bitcoin spent most of last week trading sideways in a tight range between $29,200 and $29,500. It was Monday’s most impressive price increase following news about the first spot BTC ETF launching in Europe.

Speaking to CNBC on August 16th, Fundstrat analyst Tom Lee said the world’s largest cryptocurrency by market cap could rocket to a new record high next year if regulators approve the first-ever US spot bitcoin ETF. Lee said. “The clearing price…is over $150,000, it could even be $180,000.”

Ethereum is currently trading at $1,680 at the time of writing. Ethereum price failed to recover above the $1,850 resistance zone. The world’s second-biggest cryptocurrency by market cap remained bearish after losing almost 9% of its value from the previous week and extended its declines below the $1,580 level, like Bitcoin.

The alternative coins dropped hard in the last 24 hours at the time of writing, with BNB (Binance Coin) having Ripple, Cardano, Dogecoin, Solana, Tron, Polkadot and Polygon losing more than 10% of their value. Bitcoin and Ethereum flash crash triggered $800 Million in liquidation.

Coinbase Secures Approval to Offer Crypto Futures Contracts to Eligible Customers in the US Coinbase announced that Coinbase Financial Markets, Inc. has secured regulatory approval from the National Futures Association (NFA), a CFTC-designated self-regulatory organisation, to operate a Futures Commission Merchant (FCM) and offer futures contracts in $BTC and $ETH to eligible customers in the US. The company called the development “a critical milestone that reaffirms our commitment to operate a regulated and compliant business”. It said customers “will soon be able to directly access futures through Coinbase Financial Markets.”

London-based Jacobi Asset Management today announced the first Bitcoin exchange-traded fund (ETF) listing on Euronext Amsterdam. Jacobi FT Wilshire Bitcoin ETF is trading under the ticker BCOIN. It charges investors a 1.5% annual management fee. The firm emphasised that as an open-ended fund, its Bitcoin ETF will significantly shift from the traditional exchange-traded notes (ETNs) to date, the most widely spread structure in Europe for crypto-backed financial instruments.

US Federal Reserve’s instant payments platform FedNow added “Dropp,” a Hedera-based micropayments platform, as a service provider. Dropp is a pay-by-bank alternative to credit card payments that allows merchants to accept small-value purchases digitally without hefty transaction fees, according to FedNow’s press release. Dropp allows micropayments in Hedera’s HBAR, the US dollar and Circle’s USDC. Hedera Hashgraph describes itself as a uniquely structured blockchain compared to other chains due to its usage of hashgraph consensus. According to the company, Hedera is the only publicly distributed ledger that uses this, which notes that Hashgraph achieves 10,000+ transactions per second and low-latency finality in seconds.

The Monetary Authority of Singapore (MAS) has released a document titled “MAS Finalizes Stablecoin Regulatory Framework.” MAS’s stablecoin regulatory framework will apply to single currency stablecoins (SCS) issued in Singapore that are pegged to the Singapore dollar or any G10 currency. Issuers of such SCS must meet the key requirements.

Grayscale Investments, seeking to convert its Bitcoin trust into a spot Bitcoin exchange-traded fund, could be getting a decision on its lawsuit against the federal securities regulator before the week’s end. In June 2022, the US SEC rejected Grayscale’s application to convert its GBTC to a spot Bitcoin ETF. In response, Grayscale sued the securities regulator, saying it acted arbitrarily by failing to apply consistent treatment to similar investment vehicles.

Dubai Virtual Assets Regulatory Authority (VARA) has stated that a fine of 10 million dirhams (approximately $2.7 million) was imposed on OPNX in May, which remains unpaid to this day. Subsequently, the regulatory body indicated that Su Zhu, Kyle Davies, and the two co-founders of OPNX were individually fined 200,000 dirhams (approximately $54,451) each for failure to comply with marketing, advertising, and promotional rules.

US SEC is set to Approve Ethereum Futures ETF Reported Bloomberg, the United States Securities and Exchange Commission is set to allow the first exchange-traded funds (ETFs) based on Ethereum Futures. According to an August 17th report from Bloomberg — which cited anonymous sources familiar with the matter — the regulator does not look as though it will block the applications of nearly twelve companies, including ProShares, Volatility Shares, Bitwise and Roundhill who have filed to launch Ether futures ETFs in recent weeks. It remains unclear which ETF applications would be approved by the SEC; however, officials indicated that several of the filings may be approved by as soon as October.


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BullionFX Ltd operates a digital currency exchange registered with multiple regulators. BullionFX only offers spot conversion between digital currencies including $GOLD and $BULL.  

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