After Q1’s surge and Q2’s calmness, the overall market in Q3 showed a downward trend. Without the fervour of Bitcoin NFTs and Bitcoin spot ETFs, the market witnessed only a few lukewarm trends and frequent security incidents.
In July, Ripple achieved its first victory against the SEC. In August, Grayscale won its lawsuit against the SEC, bringing hope to the market. Although these are only temporary triumphs, there is a belief that with the advancement of cryptocurrency legislation and the application for Bitcoin ETFs, a market recovery is just around the corner.
In 2023 Q3, the total market cap of the crypto market stood at $1.08T, marking an 11% decrease. Bitcoin’s market cap was $512B, experiencing a 14% decline, while Ethereum’s market cap reached $190B, reflecting an 18% decrease. Simultaneously, both Bitcoin and Ethereum saw their market share drop for the first time this year, with decreases of 3.8% and 7.8%, respectively.
Gold Market
Gold slumps to multi-month lows below USD$1,860. Gold price currently trading at USD$1,863 (XAU/USD) has been dumped heavily by market participants as Federal Reserve (Fed) policymakers reiterate their hawkish stance on the interest rate outlook. After an explosive start to September, Gold prices have finally pulled back on routine end-of-quarter profit-taking as traders square up their positions – ready to capitalize on the precious metal’s next big move. Right now, gold prices are spending very little time below the key psychological level of USD$1900 an ounce, which ultimately suggests that there’s still plenty of upside ahead.
Crypto Markets
Bitcoin’s price is currently testing a key area above USD$26,500 and its reaction could determine the mid-term price action of the market. On the daily frame, the price has been testing a 50-day moving average, located around the USD$26500 level, over the last few days. In the event of a bullish breakout, Bitcoin is likely to move towards the USD$27,500 resistance level. On the other hand, a bearish rejection could lead to a drop to the USD$25K level potentially lower.
Ethereum Price skyrockets as Ethereum ETF eyes Monday launch Prospect. In the major development, the price of Ethereum experienced a substantial uptick today, marking a significant moment in its recent surge. Throughout this week, Ethereum has enjoyed remarkable gains, with its price surging 4.6% since the beginning of the week. The current rise has made this week the most profitable for the altcoin since July.
According to analysts at Bloomberg, Ethereum futures exchange-traded funds (ETFs) may be introduced as early as next week. Eric Balchunas, an ETF analyst at Bloomberg, mentioned that the Securities and Exchange Commission (SEC) has requested various applicants to update their documents by Friday. This update would allow them to start trading as early as Tuesday next week.
Crypto Project News
Crypto Exchange Kraken Plans to Offer Stock Trading in the US and UK As reported by Bloomberg, US crypto exchange Kraken plans to offer stock and ETF trading services in the UK and the US. This would be the first time that Kraken explores the TradFi space. According to a person familiar with the matter, Kraken is going to offer the service as soon as 2024 via a new division called Kraken Securities, which has obtained regulatory permits in the UK but hasn’t been approved in the US.
Global Payment Processing Giant MoneyGram to Launch Non-Custodial Crypto Wallet Global payment company MoneyGram announced to launch of a non-custodial crypto wallet built on the Stellar network. The wallet will use Stellar network and MoneyGram’s fiat on and off-ramp services to facilitate instant transactions. The wallet will allow users to leverage stablecoin technology to move between fiat and digital currencies and is intended to strengthen the company’s focus on its core competence of cross-border remittance and payment settlements. Wallet users will be able to send digital assets to other users as well, the company said.
Binance to Exit Russia with Sale to Crypto Exchange CommEX. Binance will have no ongoing revenue split from the sale, nor any option to buy back shares in the business. Cryptocurrency platform Binance will exit Russia, selling its operations in the country to new crypto exchange CommEX. Binance, the world’s largest cryptocurrency exchange, said Wednesday that it will have no ongoing revenue split from the sale, nor any option to buy back shares in the business. It didn’t disclose the financial terms of the deal with CommEX, a crypto exchange that launched this week.
Regulation
The US Securities and Exchange Commission (SEC) announced it would delay the deadlines for decisions on VanEck’s and Ark 21Shares’ spot Ethereum ETF applications to December 25 and 26, 2023, respectively. In a filing, the SEC noted that it needs a longer period to consider the proposed rule change.
SEC Chair Gary Gensler reiterated that Bitcoin is not a security but a commodity under the Commodity Futures Trading Commission (CFTC) purview. He also stated that “everything else other than bitcoin is a security,” which has significant implications for regulating cryptocurrencies and digital assets in the United States. Gensler’s statement reflects the SEC’s long-held view that many cryptocurrencies and digital assets are securities under U.S. law. The SEC’s definition of security is broad — it includes any investment contract in which an individual invests money in a common enterprise with the expectation of profits solely from the efforts of others. In other words, if an asset is sold as an investment with the expectation of profit based on the efforts of others, it is likely to be considered a security.
Coinbase International Exchange has received regulatory approval from the Bermuda Monetary Authority (BMA) to enable perpetual futures for eligible non-US retail customers. The exchange would now be able to tap into the services that contribute to 75% of the global crypto trading volume. The exchange was Coinbase’s answer to the regulatory crackdown in the US after the SEC filed a lawsuit against it. Coinbase is emerging as the biggest entity to defy the enforcement actions pursued by the Securities and Exchange Commission (SEC) after successfully launching its international exchange in Bermuda in Q2 this year. The exchange is now expanding to meet the demands of its users by bringing derivatives services.
Disclaimer
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