BullionFX Market Report – June 16, 2023

Gold continued to trade this week within the $1,930 to $1,984 range failing to break lower despite the US Federal Reserve raising interest rates and the Dow Jones rallying. This likely suggests the market is rejecting any bearishness in the price of gold and the $1,930 zone will remain incredibly supportive and extremely unlikely to break. If it does break we could see gold hit low $1,800’s, otherwise the market expects gold to re-test its recent high of $2,000 with further resistance at $2,080 and $2,200.

Both Bitcoin and Ether continued to have heavy losses across the week. Bitcoin was trending lower down 2.93% across the past 7 days and Ether down 6.40% across the same period per coinmarket cap. These losses were also experienced across the top 20 crypto tokens. Heavy losses were experienced by Solana, Matic, BNB after being named in the SEC litigation as potential security tokens. The US SEC action against Coinbase and Binance US continue to weigh heavily on crypto markets. Outflows from Coinbase and Binance reached US$4 billion during the week. Crypto traders, spooked by SEC lawsuits, are withdrawing assets from exchanges en masse. Investors are looking forward to the U.S. central bank’s decision on interest rates to be announced later on Wednesday, with the Federal Reserve expected to keep rates unchanged at 5%-5.25%.

Total NFT sales volume on the Ethereum blockchain dropped 3.07% to US$13.09 million in 24 hours. In stark contrast, sales volume gained 95.59% to US$5.41 million on the Bitcoin network, according to CryptoSlam data. Sales of Ordinals — Bitcoin NFTs that are not part of an established collection – recorded the highest sales volume in 24 hours, climbing 87.32% to US$3.10 million.

Hong Kong and US aim for stablecoin regulations by 2024 – The Hong Kong Monetary Authority (HKMA) has completed a public consultation on stablecoin regulations and aims to introduce clear regulatory guidelines for the stablecoin market by the end of 2024. This all appears aligned with the aim of building greater regulatory certainty for crypto-asset companies in Hong Kong. Aside from Hong Kong, the United States House Financial Services Committee is also looking to introduce regulations for the stablecoin market. The committee has introduced three draft stablecoin bills in 2023, with the latest proposing key powers to the Federal Reserve and some capacity for state authorities to intervene. The approach of local regulators in the two countries couldn’t be more different. On the one hand, Hong Kong regulators are actively seeking to make the country a crypto hub, whereas, on the other hand, the actions of U.S. regulators might force many established businesses to move out of the country, including stablecoin issuers.

SEC and Binance.US to negotiate deal avoiding total asset freeze – Binance.US and the United States Securities and Exchange Commission (SEC) have agreed to work on an arrangement that will allow the exchange to avoid freezing all of its assets. This is stemming from the recent SEC filings of an emergency motion for a temporary restraining order on Binance.US after accusing Binance CEO Changpeng “CZ” Zhao of being able to access Binance.US customer funds.

Bitstamp, Interactive Brokers gain UK crypto register approvals – Bitstamp and Interactive Brokers are the first additions to the UK crypto register in six months. The approval, granted on June 13, makes Bitstamp UK Limited the latest addition to the FCA’s crypto register and comes just a day after broker/dealer trading company Interactive Brokers (UK) secured approval. Notably, the FCA had not approved any crypto asset firms since Hidden Road’s registration in December, making these recent approvals the first in six months. Operating in the UK requires crypto firms to meet the FCA’s anti-money laundering checks. The UK government has been promoting London as a hub for cryptocurrencies, but the regulatory approval process has been criticized for its slow pace and conservative approach.

Prime Trust subsidiary Banq files for bankruptcy protection – Banq, a subsidiary of Prime Trust, has filed for bankruptcy protection. The filing comes just five days after Prime Trust reached an acquisition deal with BitGo. Founded in 2020, Banq provided “mobile SDKs” on top of Prime Trust APIs for easy integration of all the crypto and fiat funding services.

Bank of China issues $28M in digital structured notes on Ethereum blockchain – On June 12, Bank of China’s investment bank subsidiary BOCI announced the issuance of 200 million Chinese yuan ($28 million) worth of digital structured notes minted on the Ethereum blockchain. The move makes BOCI the first Chinese financial institution to issue a tokenized security in Hong Kong.

Uniswap Labs releases draft code for ‘entirely new’ version of Uniswap –  Uniswap Labs CEO Hayden Adams laid out his vision for the next version of the protocol, called V4. The new design will be more efficient, with initial results suggesting it will reduce the cost of creating pools by 99%. It will also let developers choose their own tradeoffs, allowing them to build minimalistic pools that are cheaper to use. But the biggest change is that it creates a much broader playing ground for developers to build their own pools with their rules — potentially leading to much more experimentation.

Cardano’s DeFi TVL surges past 500 million ADA amid growing ecosystem interest – The total value of assets locked (TVL) on Cardano, measured in ADA tokens, crossed the 500 million mark for the first time earlier today, according to data from DeFiLlama. The TVL growth is remarkable, considering that Cardano reached the 400 million ADA tokens milestone on May 19. This indicates that over 100 million new ADA tokens were added to Cardano in less than a month, despite the U.S. SEC classifying it as security in their June 5 lawsuit against Binance. The Cardano Foundation has disputed this SEC’s classification.

TRON brings in investment firm DWF Labs to add liquidity to ecosystem – DWF Labs hopes to advance TRON’s growth and development, including liquidity provision. Part of the tie-in will see DWF Labs become a liquidity provider to support the growth of the TRON blockchain ecosystem.

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