BullionFX Market Report – September 02, 2023

2 September 2023
by Bullion FX
7

Gold Market

Gold clings to one-month highs of $1,944 on Thursday, underpinned by weaker-than-anticipated US economic data, which bolstered bets on the less hawkish stance from the Federal Reserve Bank. Following the downbeat prints of consumer confidence and employment clues, the US economic calendar flashed slightly better data on Thursday, triggering the gold Price pullback from the monthly high. The same joins the pre-data consolidation to help the DXY pare weekly losses, the first in seven, as market players await key US jobs reports.

Daily XAU/USD price action above now trades above the medium-term trendline resistance level but is yet to confidently break above. There has been a rejection by bears around the $1950.00 psychological handle while the Relative Strength Index (RSI) heads towards overbought territory.
During the Jackson Hole Symposium, Federal Reserve Chairman Powell noted that inflation remains too high and called for more vigilance but indicated that the FOMC will “Proceed Carefully” in any further moves after having already delivered 525 basis points of tightening since 2022.

Crypto Markets

On August 29th, flagship cryptocurrency Bitcoin soared to as high as $28,000, after a recent legal win for greyscale against the US Securities Exchange Commission. However, the bullish sentiment seems to have waned as the cryptocurrency has retraced to $26,000 as the Securities and Exchange Commission chose to delay its decisions on seven Spot ETF applications. SEC extended the timeline to decide on the ETF application of BlackRock, WisdomTree, Invesco, Fidelity, Valkarie, VanEck, and Bitwise. Following the extension, the SEC will have another 45 days to review these applications and choose whether to approve, deny, or delay its decision. According to the Crypto analytic platform sentiment, Bitcoin volume has surged to a two-week-high of over $30 Billion.

Ethereum price failed to reclaim $1,750 and trimmed all gains. Ethereum could accelerate lower if it breaks $1,630 support. On-chain data shows that Ethereum traders are capitulating following the slowdown of the rally, something that may turn out to be positive. Ethereum trading volume surged above $10 Billion at one point on August 30, while Ripple’s native token-XRP- recorded over $1 Billion.
USDT, the U.S. dollar-pegged stablecoin issued by Tether, experienced a slight depeg throughout August. The most severe depeg occurred on August 7, with USDT trading at a discount on various platforms. The report suggests that USDT’s sensitivity to de-pegging may be due to Tether’s redemption fee and minimum, combined with decreasing liquidity. The analyst recommends that Tether remove the redemption fee and minimum to address the peg stability problem.

Crypto Project News

Global financial messaging network Swift has announced the successful completion of a tokenisation experiment, which involved the transfer of tokens across multiple blockchains. The interbank messaging infrastructure disclosed this in an Aug. 31 press release, noting that it collaborated with Chainlink and several financial institutions for the experiments. Financial institutions that participated in the experiment include BNY Mellon, BNP Paribas, Lloyds Banking Group, Citi, New Zealand Banking Group Limited, Euroclear, and others. Swift connected to Ethereum’s (ETH) Sepolia testnet for the experiment and used Chainlink’s (LINK) Cross-Chain Interoperability Protocol (CCIP) to send tokenised assets to the different public and private blockchains.

ethOS’s “Ethereum Phone” completed its pre-order phase and is to open for regular order in the Fall of this year. This new blockchain featured phone is based on the Google Pixel 7a and comes with a unique open-source operating system: ethOS. It’s short for the Ethereum operating system. The devices are distinguished from other Web3 smartphones by the built-in Ethereum light client. This feature allows the ethOS operating system to independently validate blocks, making the device a “light node” on the Ethereum network. The Ethereum smartphone has several built-in tools for handling payments and receiving and sending messages. Additionally, the mobile device includes integration for Ethereum Name Services (ENS), allowing users to make payments in an easier way. In addition, it supports Ethereum Virtual Machines (EVM) and Layer 2 scaling networks.

Binance is launching Send Cash in Latin America, a new product that will allow users to transfer crypto via Binance Pay from 9 countries in the region. Send Cash will be available for Binance users in Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, Dominican Republic, Panama, and Mexico to transfer their crypto through Binance Pay to send funds to recipients with bank accounts in Colombia and Argentina in the first stage.

Mastercard and Binance are ending crypto card programs, in Argentina, Brazil, Colombia and Bahrain, Reuters reported. Binance and Mastercard forged the partnership allowing users to convert cryptocurrency into fiat currency with the ability to earn up to 8% cash back in crypto, depending on the purchase. Merchants still received fiat currency, while customers used their crypto as a means of payment which was intended to bolster broader crypto adoption. The cessation, set for Sept. 22, will not affect Mastercard’s other crypto card programs. The reason behind Mastercard’s decision has not been disclosed, but it comes at a time when Binance is facing legal issues and regulatory scrutiny.

Regulation

The US Securities and Exchange Commission (SEC) has delayed, decisions on seven spot Bitcoin ETF applications. The new deadline for Bitwise’s application is October 16, 2023, and it’s October 17 for BlackRock, Fidelity, VanEck, and Invesco Galaxy. WisdomTree will wait until October 19 to find out the decision on its application. The SEC started reviewing the applications in July and will have up to 240 days to make a decision. Last month, the SEC extended the review of the Ark 21Shares Spot Bitcoin ETF.

US Judge Rules that Uniswap Not Responsible for Third Parities’ Bad Behaviours, on Protocol Judge Katherine Polk Failla of the US District Court for the Southern District of New York dismissed a class action complaint against Uniswap and Paradigm alleging that Uniswap should be responsible for the losses caused by scam tokens on the protocol. The judge ruled that protocol developers cannot be held accountable for the losses of the users, or the damage caused by third parties.

China is readying a fresh digital yuan adoption push ahead of next month’s, Asian Games, with the nation ready to show o its CBDC to a large international audience for the first time. Citizens in the pilot zones will be able to buy tickets for the event using the central bank’s official CBDC app – a first for a major sporting event in China. The games will be held in Hangzhou, Zhejiang Province, from September 23 to October 8. Beijing has earmarked the event, the first large-scale international sporting event to be held in the nation since the COVID-19 pandemic containment measures were lifted, as a key moment for its coin.

Republican Presidential candidate Vivek Ramaswamy is bullish on Bitcoin, especially after Grayscale’s decisive court victory over the Securities and Exchange Commission (SEC) on Tuesday. Always a state sceptic, the conservative entrepreneur claims the “shadow government” in Washington is “out of control,” with federal courts being the last bastion against “the unlawful rogue behaviours of three-letter government agencies.” In Grayscale’s case, the court delivered. Regarding Grayscale’s case, the presidential candidate highlighted the Court’s ruling as a positive step towards keeping Bitcoin and blockchain innovation in the U.S. instead of overseas.

Disclaimer

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

Digital asset prices are highly volatile; this communication does not constitute an offer or solicitation to buy or sell any products or securities. It is important to exercise caution and conduct your own research and due diligence when considering any investment or product decisions. Any decision to use or invest in these products should be made based on your own assessment of the risks, benefits, and legal requirements. Any APR shown is an estimate of rewards you will earn in cryptocurrency over the selected timeframe. It does not display the actual or predicted returns/yield in any fiat currency. Not financial advice.

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