Bitcoin (BTC) responded positively to the mid-week dip below $63,500, rallying to exceed $68,000. While most altcoins are experiencing slight gains, XMR and MKR have both dropped by around 3-4% daily. More importantly, former United States President Donald Trump spoke at the Bitcoin Conference 2024 and announced big plans to promote crypto in the country if re-elected.

BTC Reaches $68K

Last Friday proved eventful for the top digital asset, which surged to $67,000 within hours. Over the weekend, volatility increased following an announcement by the current US President, Joe Biden, that he would not seek re-election despite his ongoing campaign.

Bitcoin fell by $2,000 immediately but regained momentum on Sunday evening and Monday. This led to a peak of over $68,400, marking a six-week high. However, bears quickly curtailed further gains, causing the asset to decline sharply on Thursday to a weekly low of $63,400.

Despite this, bulls intervened and drove the price up on Friday, reaching above $68,000 again earlier today, despite increasing inflows to exchanges. Although Bitcoin has recently reverted to around that level without making decisive gains, its market cap has risen to $1.340 trillion, with its dominance over altcoins nearing 53%.

Trump Speaks

During the aforementioned conference, Donald Trump emphasized his belief that the US will become the global crypto capital and a Bitcoin superpower. Trump also suggested that Bitcoin could surpass gold and predicted its remarkable ascent. Furthermore, he announced his intentions of making the flagship crypto a strategic reserve asset for the country upon re-election.

According to the former president, Bitcoin symbolizes freedom and independence from governmental control. He also announced that if re-elected, he will fire SEC Chairman Gary Gensler immediately, as Trump believes Gensler has done significantly more harm than good for the US economy during his anti-crypto regime.

Other Markets

Over the past year, the US economy has felt the impact of the Federal Reserve deciding to keep borrowing costs at their highest level in more than two decades. The consequences of this prolonged period of high rates have been both surprising and significant. Investors have been on edge, particularly following a sudden market drop that, while alarming, was anticipated by many as a long-overdue correction. As job growth shows signs of moderation, the Fed is expected to signal a forthcoming rate cut.

Meanwhile, San Francisco is grappling with an unprecedented office vacancy rate, and the pain associated with US office loans is only beginning to intensify. In the world of cryptocurrencies, activity is heating up as Bitcoin approaches a record high, prompting Cantor Fitzgerald to launch a new Bitcoin financing venture. Despite this, stock markets have experienced a rebound in the latter part of a strong quarter, though the rally has been tempered by growing doubts about AI and consumer spending.

Amidst these developments, short seller Andrew Left is reportedly living in fear due to federal scrutiny, with short sellers feeling the heat after US charges of fraud were leveled against him. On a different note, an interview with Hiromi Yamaji, head of the Japan Exchange Group, highlights the transformative impact he has had on the Japanese equity market. The former banker credited with a $1.7 trillion rally in Japan believes this is just the beginning, as Tokyo continues to emerge as one of the top-performing equity markets worldwide.

The recent introduction of spot Ethereum ETFs was expected to be revolutionary. However, investor interest seems to be skewed heavily towards Bitcoin, causing Ethereum to lag behind. During the first week of trading, ETH fell to $3,086, mirroring the Bitcoin spot ETF debut.

A significant factor for this is the 2.5% fee charged by Grayscale on their Ethereum ETF, which is deterring investors. In just four days, the eight ETFs experienced $178 million in net outflows, with Grayscale alone accounting for $1.16 billion of that total.

Lack Of Interest

Despite a new mini ETF offering a reduced fee of 0.15%, net outflows persisted, with only 10% of the original ETHE converting to ETH. Investors simply show greater interest in Bitcoin than in Ethereum as investors rushed in before the ETF launch, anticipating a significant rally. When this did not materialize, they swiftly liquidated their positions.

Unlike Bitcoin, often referred to as digital gold, Ethereum lacks a straightforward tagline that resonates with traditional finance enthusiasts. This complexity makes it harder for new investors to grasp and get excited about. Additionally, the absence of staking features in these ETFs reduces the incentive for investment. Consequently, the reception to the spot Ethereum ETFs has been tepid despite the initial hype.

BTC Still Going Strong

While Ethereum faced difficulties, Bitcoin captured attention in the options market. QCP notes that implied volatility for options expiring on July 28th reached 85, nearly double the realized volatility, highlighting the level of expectation.

Moreover, major funds are making significant bets, with some positioning for a major move following Donald Trump appearing at the Bitcoin Conference 2024 and the upcoming Federal Open Market Committee (FOMC) meeting. Additionally, crypto trader Jelle noted a large descending broadening wedge forming around previous cycle highs. Jelle believes that if Bitcoin breaks out, it could potentially surge to $85,000.

The Solend protocol on Solana (SOL) has been rebranded as Save. This update includes the introduction of a new stablecoin, liquid staking token, and a platform for shorting memecoins. Save described its platform as the official permissionless savings account for Solana.

The announcement also introduced SUSD, saveSOL, and dumpy.fun and comes after the team behind Solend launched Suilend on Sui (SUI) in March. At that time, Rooter praised Sui for its advanced developer tools, comparing it to the more cumbersome development processes on Ethereum and Solana.

Offering True Decentralization

SUSD is a new decentralized stablecoin that offers 0% interest borrowing against Solana. Save expressed optimism that the close integration of the stablecoin with its protocol will drive its swift expansion.

Rooter, the pseudonymous founder of the former Solend, claims Solana is currently dominated by centralized stablecoins like USDC and USDT. He added that the straightforward mechanism and design of SUSD ensures full decentralization while offering 0% interest borrowing against SOL. Rooter further noted that the 0% borrowing rate of SUSD is highly appealing compared to USDC and USDT, which have averaged a 10% APR on Save over the past month.

An Intriguing Opportunity

SaveSOL is a new token and liquid staking protocol on Solana that allows trading while earning rewards via staking. SaveSOL can also be used as collateral for SUSD. Dumpy.fun is a platform designed for shorting meme coins, capitalizing on market corrections in this segment. Save promotes this new tool by pointing out that meme coins have reached a fever pitch, but scams and cash grabs are harming the community.

Currently, Save shows $395 million in deposited assets and $92.9 million in borrowed assets. The documentation specifies that Save is an algorithmic, decentralized protocol for lending and borrowing on Solana.

It is worth mentioning that the top pool on Save offers an annual percentage rate (APR) of 18.35% for deposits in the liquid staking token Blaze (BLZE). The website claims these pools are finely tuned to balance attractive yields with secure asset parameters.

Republican Senator Roger Marshall has retracted his endorsement of the Digital Asset Anti-Money Laundering Act, a contentious anti-crypto measure he developed alongside Democrat Senator Elizabeth Warren in 2022. His withdrawal as a co-sponsor of the bill occurred on July 24th, leaving 18 senators still in favor, according to the official Congressional directory for the legislation.

Senator Warren is seeking re-election in 2024 for her Massachusetts seat. On February 20th, pro-crypto attorney John Deaton announced his candidacy as a Republican with the aim of challenging Senator Warren.

Regulating Crypto

The DAAMLA bill, introduced by Marshall and Warren in December 2022, was championed by Senator Warren, who alleged that cryptocurrency was being exploited by rogue nations, oligarchs, drug lords, and human traffickers to launder billions in stolen funds.

The legislation seeks to regulate the cryptocurrency sector under established Anti-Money Laundering and counter-terrorism financing laws. A significant aspect of the bill is its classification of numerous crypto service providers, such as decentralized wallet providers, validators, and miners, as financial institutions, thus requiring them to adhere to the Bank Secrecy Act.

The Ramifications

Critics, including several crypto organizations and individuals, argue that the proposed legislation grossly overstates the involvement of crypto in funding terrorism and illegal activities, and could severely impact the US economy.

On February 20th, the Chamber of Digital Commerce (CDC), a US-based crypto advocacy group, urged the Senate Banking Committee to reject the DAAMLA bill, warning it could wipe out hundreds of billions of dollars in value for US startups and devastate the savings of numerous Americans who legally invested in crypto.

Additionally, on February 13th, a coalition of 80 former military and national security officials sent a letter cautioning lawmakers against endorsing the DAAMLA bill. They warned that the legislation could obstruct law enforcement and raise national security issues by driving the majority of the digital asset industry overseas.

HSBC has announced that, starting July 24th, 2024, their Australian division will block payments to cryptocurrency exchanges, becoming the latest major bank to avoid the industry, citing concerns about scams.

Justifying The Decision

In an email to customers outlining new safety measures, HSBC Australia stated it will now prevent payments via bank accounts and credit cards to cryptocurrency exchanges to protect customers, the bank explained. To justify its decision, HSBC highlighted that Australians lost up to $171 million to investment scams in 2023.

While apologizing for the inconvenience, HSBC emphasized its priority of safeguarding customer funds. This move follows similar actions by various other Australian banks, all aiming to shield customers when it comes to scams and other kinds of potential fraud.

Amy-Rose Goodey, managing director of the Digital Economy Council of Australia, expressed surprise at the decision, underscoring broader concerns in the cryptocurrency community about increasing bank restrictions. HSBC clarified that it will continue accepting payments via cryptocurrency exchanges, maintaining regular banking services for its 1.5 million Australian customers across 45 branches.

Looking Elsewhere

Banks are often cautious or resistant towards cryptocurrencies due to concerns about regulatory compliance, financial stability risks, potential for fraud or scams, and competition with traditional banking services.

However, several other countries, including Switzerland, Singapore, Japan, and Malta, have established supportive environments for cryptocurrencies within their banking systems. These nations have implemented regulatory frameworks that accommodate blockchain and crypto businesses, with varying degrees of clarity and oversight to foster innovation and integration into financial markets.

Kamala Harris, the Vice President of the United States and a potential Democratic Party candidate for the upcoming election, will reportedly not be attending the Bitcoin Conference 2024, as confirmed by David Bailey, CEO of Bitcoin Magazine.

Disappointing But Not Unexpected

Bailey noted the decision is not unexpected, as the Biden administration is very much anti-crypto in general. David also previously hinted at the possibility of Harris, a potential Democratic presidential nominee, speaking at the event similar to her Republican counterpart, Donald Trump, describing it as an opportunity for the party to reconsider its stance on crypto.

The decision for Harris not to attend has sparked speculation about her possibly negative stance on crypto. Bailey himself seems to share this perspective and reaffirmed his support for Donald Trump, emphasizing the potential difficulties Harris might face addressing the community given current policies.

Stuck In The Past

Some like Adam Cochran criticize the crypto community for increasingly attacking Democrats, suggesting a need for bipartisan engagement to advance constructive crypto policies. Many in the community believe that the Democratic party is more interested in maintaining the status quo rather than pushing the envelope in terms of financial innovation.

While reports suggest Harris may reconsider her approach to crypto if elected in the upcoming presidential election following Joe Biden opting to drop out of the race, skepticism remains among stakeholders like Tyler Winklevoss and other notable names.

Toyota is investigating the potential of integrating Ethereum blockchain technology into its vehicles. The move comes right after the United States Securities And Exchange Commission recently approved several spot Ethereum ETF applications.

Creating A MOA

According to the announcement, Toyota intends to incorporate the Ethereum blockchain into its vehicles and is planning to create a Movement Oriented Account (MOA) using the ERC-4337 standard.

Toyota Blockchain Lab aims to develop an MOA (Mobility Oriented Account) based on Ethereum ERC-4337 to ensure the account's maintenance even if the private key is lost. The development of the MOA tool using the ERC-4337 standard is aimed at advancing towards fully autonomous driving in the future.

Exploring New Ways

Company representatives referred to such a blockchain account as a MOA (Mobility-Oriented Account). Based on the widely adopted Account Abstraction standard ERC-4337 in Ethereum, Toyota is actively exploring new ways on how to effectively design MOA. Toyota Blockchain Lab also expressed interest in receiving new proposals through the Ethereum community, including EIP-7702.

Ethereum remains a widely popular choice among car manufacturing companies because its blockchain technology offers robust security, transparency, and the ability to create decentralized applications. These features are appealing for integrating smart contracts and managing data securely across complex supply chains and vehicle ecosystems.

Coinbase has filed a motion against the United States Securities Exchange Commission, compelling the regulator to provide access to private emails linked to Gary Gensler amid their ongoing legal dispute.

Clarity Is Key

The move follows Coinbase recently communicating to Judge Katherine Polk Failla, indicating their intention to narrow the scope of their document request concerning the regulator after encountering resistance.

Initially seeking private communications by Gensler dating back to his tenure as SEC Chair, Coinbase now focuses specifically on documents related to any and all communications during when Gensler first started as Chair in 2021. The motion specifies a subpoena request pertaining to Gensler and his speeches about digital asset regulatory status and exchanges.

Crucial Significance

Coinbase Chief Legal Officer, Paul Grewal, emphasized that these documents are crucial for their defense against allegations by the SEC regarding unauthorized trading of unregistered securities on their platform. The motion asserts that the SEC refusing to search beyond its Enforcement Division is unjustified, citing issues of relevance, burden, and privilege.

Coinbase is also seeking information about SEC staff conversations with other market participants and documents related to their 2021 public offering, which underwent a six-month SEC review. The motion underscores that the SEC did not conclude Coinbase was operating as an unregistered exchange, broker, or clearing agency nor identified tokens listed on their platform as securities.

Swan Bitcoin, a company specializing in Bitcoin investments, has decided against pursuing its initial plans to become publicly traded and is winding down its managed mining operations. CEO Cory Klippsten announced in a recent post that the company is scaling back its increased spending in its core financial services business. This includes reducing staff across various departments, although specific numbers were not disclosed.

Revised Expectations

Klippsten expressed regret over the necessity of letting go of some of the highly skilled employees who have worked at Swan Bitcoin for a long time, calling them some of the top Bitcoin experts globally. He emphasized his willingness to collaborate with them again in the future.

The decision to abandon its managed mining business and halt its IPO plans is reportedly due to revised expectations regarding revenue by mining operations in the near term. Swan Bitcoin had previously disclosed its development of a Bitcoin mining division starting mid-last year, alongside plans for a Series C funding round and a potential public offering within the next year.

Time To Adapt

Despite experiencing significant growth last year, including doubling its team and achieving over $125 million in annualized revenue, Swan Bitcoin faces challenges in the competitive mining landscape. Factors such as the recent Bitcoin halving, which reduced block rewards and heightened competition, as well as the popularity of spot Bitcoin ETFs diverting investor interest away, have contributed to this strategic shift.

To adapt, many mining companies are diversifying beyond traditional mining activities into areas like artificial intelligence and cloud computing, leveraging their existing infrastructure to remain profitable amidst evolving market conditions.

Cryptocurrencies held steady on Monday following the United States Securities And Exchange Commission (SEC) approving several spot Ethereum ETFs. Meanwhile, Bitcoin (BTC) saw a modest 1% dip, settling around $67,359.39, while ETH experienced a 1.55% decline, closing at $3,483.31. Meme coins like Dogecoin (DOGE) also slipped by 1.64%, trading at $0.1387.

Greed Dominates

Bitcoin traded within the $67,000 to $68,000 range, while Ethereum faced selling pressure post-ETF approvals. Notable market movements included a significant $30 million Ether transfer to Binance, raising concerns of potential market impacts.

Liquidations also totaled over $105 million in the past 24 hours, wiping out nearly $75 million in long positions. The Open Interest for Ether grew marginally by 0.25%, indicating new short positions amid price declines, while the Open Interest for Bitcoin fell 1.11%, reflecting reduced long positions.

The Cryptocurrency Fear & Greed Index rose to 71, indicating increased market greed. Top gainers over the past 24 hours included Helium (HNT), up 4.18% to $5.10, cat in a dogs world (MEW) rising 3.63% to $0.007637, and XRP (XRP) gaining 2.16% to $0.6076. The global cryptocurrency market now stands at $2.44 trillion, down 1.44% in the last day.

Stocks React

In stocks, the S&P 500 rose 1.08% to close at 5,564.41, its best performance since early June, with the Nasdaq Composite climbing 1.58% to 18,007.57, and the Dow Jones Industrial Average adding 0.32% to reach 40,415.44. NVIDIA Corp. led the charge, gaining 4.76%. Major indices like the S&P 500 and Nasdaq Composite had their largest weekly declines since April last week.

Lastly, traders are now anticipating a 91% chance of the Fed cutting interest rates at the upcoming FOMC meeting, according to the CME FedWatch tool. Analysts noted potential market pullbacks following the approval of spot Ether ETFs but advised buying on dips, citing bullish signals on longer time frames.

Elon Musk recently made headlines by changing his profile photo on social media to depict laser eyes, a widely recognized symbol within the Bitcoin community. This update coincided with flight data indicating his private jet had touched down in Tennessee, where the Bitcoin Conference was scheduled to take place.

Tracking His Movements

The news was initially reported by Fox Business journalist Eleanor Terrett, renowned for her coverage of cryptocurrency, and later confirmed by an Instagram account dedicated to tracking Musk and his aviation movements.

Historically, Musk has been proactive in managing his online presence, including taking steps to restrict Twitter accounts that track his movements. However, similar accounts on Instagram have continued to operate without interruption.

History Repeats Itself

Musk has had countless past interactions with the crypto community on social media which have included displaying Bitcoin-themed imagery and mentioning Bitcoin in his Twitter bio, although these references have since been removed over time. These actions have drawn significant attention by both cryptocurrency enthusiasts and the broader public, reflecting the ongoing influence that Elon has in the digital currency sphere.

Musk and his tweets have often caused significant price movements for the entire crypto market in the past, making him a central figure in the cryptocurrency community. His involvement has also sparked debates about the influence of prominent figures on decentralized currencies and their future adoption.

The U.S. political scene recently underwent seismic changes as President Joe Biden announced that he will no longer be competing in the 2024 election, conceding to his long-time rival Donald Trump. This significant development introduced new volatility into cryptocurrencies associated with Trump, who is seen favorably by some in the crypto community.

Selling Activity Spikes

MAGA Coin, linked to the Make America Great Again movement which was introduced by Trump years ago, experienced an 8% decline over the past 24 hours. Trading volume for this Ethereum-based token surged by 140%, reflecting intense selling activity. Meanwhile, a meme coin named after the former President, based on Solana, surged by 53% in the same period, accompanied by a 265% increase in trading volume.

The negative market response may stem due to Biden exiting the race, but it is worth noting that crypto speculators have been betting against Biden for a while, with odds of his withdrawal soaring on platforms like Polymarket even before the formal announcement.

Trump Continues To Gain Momentum

Trump-themed cryptocurrencies have seen strong rallies this year, buoyed by his supportive stance on the U.S. cryptocurrency industry. His advocacy has resonated with crypto enthusiasts, whether through promises to make the U.S. a crypto-friendly destination, his portrayal as a crypto president, or his acceptance of crypto donations.

With odds favoring Trump and his electoral prospects standing at 65% on Polymarket, the cryptocurrency market remains bullish on his potential return to office. The 2024 United States Presidential Election will be held on Tuesday, November 5th, later this year. Voters will elect a President and Vice President for a term of four years.