Cointree Crypto Market Update - June 26th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$93,144, moving -4.82% at the time of writing. Meanwhile, Ethereum ends at AU$5,199 moving -3.39% week-on-week. On the Altcoin side, Solana -0.21%, Cardano +0.92%, and Pepe +15.92%.

🗞 What’s happening in the news?

Political Spin with a Crypto Twist

In an election year in the United States, it seems politicians are turning to cryptocurrency as a tool to shape public opinion. Former U.S. President Donald Trump, for instance, has pivoted from his earlier criticism of cryptocurrencies to launching his own non-fungible token (NFT) collection. Amid high-profile legal battles, Trump has made blockchain technology a centrepiece of his 2024 campaign.

Similarly, current President Joe Biden is navigating the crypto landscape carefully. Though it's unclear if his campaign will accept crypto donations, he has discussed digital assets in roundtable meetings with congressional leaders. Biden’s administration has also taken a critical stance on the environmental impact of cryptocurrencies.

Not to be left out, Florida Representative Matt Gaetz has introduced legislation to allow U.S. citizens to pay federal taxes with Bitcoin. Gaetz's move follows his visit to El Salvador, where he was inspired by President Nayib Bukele's crypto-friendly policies.

Solana's Game-Changing Feature

Solana is set to shake-up crypto transactions with its new feature: Solana Actions and blockchain links, or “blinks.” This innovative solution allows users to create and share transactions via URLs, making it possible to conduct crypto transactions directly from websites, social media platforms, and even physical QR codes.

Chris Osborn, founder of Dialect, explained, "From your X feed, you can buy an NFT, tip a creator, receive money, vote, stake, swap, and so much more." This integration promises to streamline crypto transactions, making them more accessible and versatile.

In recent months, Solana has seen a significant uptick in activity, capturing 60% of new volume in decentralised exchanges (DEXs) by May 2024. This surge is attributed to its lower fees and growing popularity among memecoins and decentralised infrastructure protocols.

ECB’s CBDC Progress Report

The European Central Bank (ECB) has released its first progress update on developing a central bank digital currency (CBDC). The ECB has promised robust privacy measures, including pseudonymisation, hashing functions, and encryption, to address consumer concerns about tracking and data privacy.

The ECB’s CBDC framework ensures that payment service providers cannot use consumer financial data without explicit consent. Additionally, the report outlines methods for conducting offline transactions, which will be directly settled on user devices like smartphones or smart cards.

Despite these advancements, privacy and control issues remain a significant concern within the crypto community. A 2023 report from Trezor highlighted that 73% of respondents were uneasy about the privacy implications of a CBDC, fearing increased government control over consumer behaviour.

📖 What we’ve been reading

Most profitable crypto sectors in first half of 2024 revealed

Blockchain gaming, decentralised finance, and layer-2 platforms lagged behind newly emerging sectors and the current memecoin frenzy. Read more ➔

Why You Should Diversify Your Digital Asset Portfolio

Institutions need to broaden their holdings of crypto holdings in order to capture the full range of innovation in the market. Read more ➔

Sweeping Bitcoin and Ethereum Liquidations

“This is time when accumulation whales are likely to respond to market fear, indicating a potential V-shaped rebound," Read more ➔

SEC drops investigation into Ethereum

“A letter from Consensys states that the SEC’s approval of spot Ether exchange-traded funds indicated that it had “updated its position to classify ETH as a commodity and not a security," Read more ➔

Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.