Weekly recap: cryptomarket takes a nosedive

Crypto market in numbers

Crypto trading volumes continue to decline. According to Coingecko, daily trading volumes fell by almost 26% during the past week. During the same period, the total cryptocurrency capitalisation decreased by over 8%.

Arcane Research reports that last week’s average trading volume on leading spot exchanges hit its lowest since December 2020. According to CryptoCompare, the crypto derivatives trading volume exceeded spot trading for the first time in June.

Bitcoin’s dominance in the crypto market has grown by almost 2%. According to CoinMarketCap, it has hit 46.2% since 7th July 2021. Overall, the indicator has been fluctuating between 44% to 47% over the past month.

For almost a month, bitcoin hasn’t risen above $40,000. Since 25th June 2021, its average price has stayed below $35,000. The BTC volatility continues to decrease with no significant price changes. Since 8th July 2021, the 30-day Volatility Index fell by almost 1% reaching 4.09%.

Gainers of the week (8th – 14th July 2021)

Coin	Opening price 08.07, $	Opening price 14.07, $	Change
GAS	6.3	9.17	45.6%
WXT	0.0034	0.004	17.8%
CRON	1.66	1.86	12%
VITAE	0.22	0,24	11.2%
EOS	3.83	4	4.4%

Losers of the week (8th – 14th July 2021)

Coin	Opening price 08.07, $	Opening price 14.07, $	Change
WAVES	16.49	13.64	-17.3%
EXM	0.078	0.066	-16%
ETH	2,326.31	1,981.19	-14.8%
UNI	21.88	18.79	-14.1%
BTT	0.0027	0.0023	-14.1%

Easily track gainers and losers within the Simple trade section on EXMO. Check real-time updates in the last 24 hours, week and month.

Most traded coins (7th – 13th July 2021)

Coin	Trading volumes, $
BTC	21,456,265
ETH	13,867,333
XRP	3,475,528
EXM	1,490,667
ROOBEE	1,090,011
DOGE	926,086
IQN	833,667
LTC	738,154
BCH	611,440
SMART	572,011

Top crypto market driving factors

Bitcoin (BTC) and the overall crypto market

▼ 08.07.2021 – Chinese tech company, Meitu, has reported losses of $17.3 million on its Bitcoin holdings during the first half of 2021.

▼ 08.07.2021 – The deputy governor of China’s central bank stated that Bitcoin and stablecoins have become speculative tools that threaten financial security and social stability.

▼ 09.07.2021 – Elon Musk criticised Bitcoin and Ethereum for ineffective transactions.

▼ 09.07.2021 – Social media platform, TikTok, has cracked down on the promotion of various financial services and products, including cryptocurrency.

▲ 09.07.2021 – First Midwest Bank Trust Division increases Grayscale Bitcoin Trust holdings by 283% as of the second quarter of 2021.

▲ 10.07.2021 – During the second quarter of 2021, Capital International, the American financial services company, invested $600 million in shares of MicroStrategy, a company that has purchased over 100,000 bitcoins since August 2020.

▼ 12.07.2021 – Glassnode: traders are withdrawing 2,000 BTC from centralised exchanges daily – equivalent to approximately $66 million at current prices. Analysts suggest that miners start accumulating.

▲ 12.07.2021 – Lincoln Avenue Capital, a US-based real estate firm, has invested 5% of its assets under management to acquire 1,000 BTC.

▲ 12.07.2021 – Fidelity Digital Assets plans to expand its staff by 70% amid strong demand for cryptocurrency services from institutional investors.

▲ 12.07.2021 – Paraguayan MP, Carlitos Rejala, has tweeted that on 14th July,
he will present the bitcoin bill that recognises BTC as legal tender.

▲ 12.07.2021 – The Taproot upgrade was successfully activated on the Bitcoin testnet on 8th July. Its activation on the mainnet is set for November.

▼ 13.07.2021 – According to the U.S. Department of Labor, U.S. consumer prices rose by the most in 13 years in June. The 5.4% inflation jump led to investors shifting their focus from cryptocurrencies to the U.S. dollar.

▼ 14.07.2021 – Media: State Grid Corporation of China (SGCC) has sent a notice to all regions of the country demanding to stop cryptocurrency mining.

Ethereum (ETH)

▲ 08.07.2021 – Chinese tech company, Meitu, gained $14.7 million on its Ether holdings during the first half of 2021.

▲ 08.07.2021 – The London upgrade has been deployed on the Rinkeby testnet. All three testnets have now successfully upgraded to London.

▼ 09.07.2021 – Elon Musk criticised Bitcoin and Ethereum for ineffective transactions.

▲ 08.07.2021 –The anticipated bridge between the Zilliqa and Ethereum networks has been launched on Testnet.

▼ 08.07.2021 – Trustnodes. Transition to Ethereum 2.0 is estimated to take place at the end of 2022.

▲ 12.07.2021 – President of Fidelity Institutional Asset Management, Tom Jessop, stated: “We’ve seen more interest in Ether, so we want to be ahead of that demand.”

▲ 14.07.2021 – The Brazilian Securities and Exchange Commission has approved the launch of an Ether-based ETF.

Dogecoin (DOGE)

▼ 08.07.2021 – Israel intends to seize DOGE, USDT and TRX from Hamas.

▲ 09.07.2021 – Elon Musk: “There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer”.

▲ 13.07.2021 – Elon Musk on Twitter: “Maybe if it [Tesla Vision] sees a Shiba Inu, the car renders a Dogecoin…” DOGE price didn’t change much.

Chainlink (LINK)

▲ 11.07.2021 – The top 10 Chainlink whale addresses hold more than 60% of LINK’s total circulating supply.

XRP (XRP)

▲ 12.07.2021 – Ripple intends to force the SEC’s former head of Corporation Finance to testify on XRP.

EOS (EOS)

▲ 09.07.2021 – The Bullish exchange to go public via a merger with Far Peak Acquisition Corporation. Far Peak Acquisition is owned by Block.one, the developer of the EOS blockchain network, and will be powered by the EOSIO protocol.

Tezos (XTZ)

▲ 08.07.2021– Gitcoin, a platform that specialised in open-source software funding, announced that it has integrated Tezos.

Uniswap (UNI)

▲ 13.07.2021 – The Uniswap crypto exchange has announced the Alpha launch of Uniswap v3 on Optimistic Ethereum mainnet, which greatly reduces transaction costs.

Crypto market trends

Regulation

? In its new annual survey on cryptocurrencies, the Financial Action Task Force on Money Laundering (FATF) noted that the measures taken by various countries are not sufficient to completely regulate the crypto industry. The FATF has emphasised the need for “careful regulation” of stablecoins.

? Russia’s prosecutor general, Igor Krasnov, said Russian lawmakers are preparing a legal amendment to confiscate illegal crypto assets. The new version of the National Security Strategy of the Russian Federation provides for the fight against illegal digital currency use.

? A new bill seeking to prohibit all private cryptocurrencies in India is to be submitted to the Indian parliament. The bill will form the basis for the launch of the “digital rupee” by the Central Bank of India.

? Bank of Thailand reiterated its stance that digital assets are not legal tender. The regulator develops CBDC and provides guidelines for stablecoins, including those backed by fiat.

? The Economic Community of West African States (ECOWAS) is concerned about the use of cryptocurrencies in the region because of the risks associated with them.

? The Advertising Standards Authority (ASA) plans to strengthen its oversight of crypto-themed advertisements in July.

? The social media platform, TikTok, has cracked down on the promotion of various financial services and products, including cryptocurrency.

Exchanges vs regulators

? U.S. Senator, Elizabeth Warren, raised concerns in a letter to Securities and Exchange Commission, Chair Gary Gensler, asking him to provide answers by 28th July on the SEC’s authority to protect consumers investing and trading in cryptocurrencies.

? The founder and CEO of Avanti Financial, Caitlin Long, announced that regulations will be tightened on the cryptocurrency industry. Long noted the risk of repeating the 2017 scenario, when crypto startups massively lost bank accounts.

? The Polish Financial Conduct Authority warned investors about using the services of Binance Markets Limited and Binance Group with “special caution”.

? Spanish financial giant, Santander, has banned UK customers from depositing funds into their Binance account following the FCA’s ban of the platform in the UK. Earlier, a similar decision was made by Barclays. UK-based payment firm, Clear Junction, has also refused to process payments made from the Binance cryptocurrency exchange. Starting from 13th July, Binance users in the United Kingdom are unable to withdraw funds in GBP. Meanwhile, thanks to a temporary registration from the FCA, EXMO allows its traders to easily buy crypto in GBP, USD, EUR and other fiat currencies as offer withdrawal. Follow the link to find out how to buy crypto with GBP and withdraw your money on EXMO.

? Chinese crypto traders report that after logging into Binance, they received calls from law enforcement agencies warning them about the risks associated with crypto trading.

Acceptance of cryptocurrencies

? The Economic Commission for Latin America and the Caribbean, ECLAC warned that El Salvador’s Bitcoin adoption poses a number of risks and the country is likely to face scrutiny from the Financial Action Task Force (FATF).

? According to a survey, only 20% of El Salvadorians approved the initiative of the President to recognise Bitcoin as a means of legal payment.

? Argentine lawmaker, Jose Luis Ramon, has presented a bill enabling workers to receive their salaries in cryptocurrency.

? A bill recognising bitcoin as legal tender is set to be presented to the Parliament of Paraguay on 14th July.

? Deputy Governor, Alexei Zabotkin, stated that large economies do not legalise bitcoin since it poses potential risks to financial stability.

? The auction house, Sotheby’s, held the first physical art auction offering the option of paying in BTC or ETH. As a result, it sold a rare pear-shaped diamond for $12.3 million in cryptocurrency.

Big business

? In its financial stability report, the Bank of England noted that interest in crypto assets and related services from institutional investors continues to grow. Such interest can strengthen the crypto market that is now controlled largely by retail investors.

? Lincoln Avenue Capital, a US-based real estate firm, has invested 5% of its assets under management to acquire 1,000 BTC. The company plans to invest 20% of its AUM in crypto.

? First Midwest Bank Trust Division increases Grayscale Bitcoin Trust holdings by 283% as of the second quarter of 2021.

? During the second quarter of 2021, Capital International, the American financial services company, invested $600 million in shares of MicroStrategy, a company that has purchased over 100,000 bitcoins since August 2020.

? Chinese tech company, Meitu, has reported on the results of its crypto investments. It has lost $17.3 million on Bitcoin and gained $14.7 million on its Ether investments.

? Fidelity Digital Assets plans to expand its staff by 70% amid strong demand for cryptocurrency services from institutional investors.

? The financial conglomerate, Bank of America, has created a team dedicated to researching cryptocurrencies.

CBDC and stablecoins

? In a joint report, the International Monetary Fund (IMF), the World Bank and the Bank of International Settlements (BIS) recommended that central banks pay more attention to the cross-border use of central bank digital currencies.

? The deputy governor of the People’s Bank of China voiced concerns that bitcoin and stablecoins have become speculation tools that threaten the security of the financial system and social stability.

? Circle plans to enter the New York Stock Exchange through a merger with SPAK in the fourth quarter of 2021. The issuer of USDC intends to attract $1.1 billion in investments.

Mining

? The State Grid Corporation of China (SGCC) has sent a notice to all regions of the country demanding to stop cryptocurrency mining. China has reportedly shut down over 90% of its Bitcoin mining capacity. But considering Bitcoin hashrate recovery, Glassnode’s analysts suggest that Chinese miners have successfully transferred gear outside China.

EXMO news

EXMO burned 647,354 EXM equivalent to $58,262. The total supply of EXMO Coins decreased to 223 million.

EXMO is now available in the CScalp terminal. Thanks to this partnership, EXMO users can now connect their EXMO accounts to the CScalp platform for more effective day trading.

Free PLN deposits added. EXMO has introduced a new free of charge deposit method for Polish złoty. Now, users can make PLN deposits via SWIFT.

That’s all for this week! Follow EXMO on YouTube, Twitter and Telegram to stay tuned to the main events and trends in the crypto market.

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