Price:Due to lingering concerns about Binance and Coinbase, Bitcoin fell back to below 26500 dollars in the broader decline of Cryptocurrency.Insights:The decline in the prices of Bitcoin and Ethercoin since 2022 reflects the decrease in the balance of Stablecoin in the same period
Price:Due to lingering concerns about Binance and Coinbase, Bitcoin fell back to below 26500 dollars in the broader decline of Cryptocurrency.
Insights:The decline in the prices of Bitcoin and Ethercoin since 2022 reflects the decrease in the balance of Stablecoin in the same period.
Bitcoin retreat
As the broader decline of Cryptocurrency swept through the counterfeit currencies mentioned and not mentioned in the U.S. Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase earlier this week, Bitcoin returned to its low point on Wednesday.
Cryptocurrency, the largest cryptocurrency by market value, recently traded at US $26364, down 3.2% in the past 24 hours. BTC surged to over $27200 on Tuesday as investors seem to have digested the latest blow from regulatory agencies to an industry that has already struggled from various collapses. Bitcoin and Ethercoin, the second largest Cryptocurrency by market value, and Tether'sUSDT Stablecoin in Binance.USTrading at a high premium indicates that investors are exiting the platform.
In an email to CoinDesk, Ruslan Lienkha, the market director of YouHodler, a Web3 encryption and legal service provider, wrote that the company expected the volatility of "days or even weeks" to continue to rise due to the litigation of the U.S. Securities and Exchange Commission.
But he added: "On the whole, the market seems to be in a better state and better prepared for possible results. There is no doubt that Cryptocurrency market participants are doing better in managing risk than they did two or three years ago."
ETH performed slightly better than BTC, with a recent trading price of $1834, a decrease of 2.7% compared to the same period on Tuesday. The CoinDesk Index's Ethereum Trend Index (ETI) entered a "significant upward trend" region, improving from the previous day's reading. ETI, CoinDesk analyst Glenn Williams, wrote in a column that it measures price momentum and indicates that "the recent bullish price trend has exceeded previous price trends.
Even so, the influence of the U.S. Securities and Exchange Commission was fierce on Wednesday.According to CoinDesk's data, the native token BNB of Coin Security Smart ChainRecently, it has dropped by 7.6% compared to the same period on Tuesday, and earlier that day it briefly dropped to around $252, which is the lowest price since early January. Cardano'sADAPolygon'sMATICAnd Solana'sSOLThey are all among the top 10 tokens of market value mentioned in the U.S. Securities and Exchange Commission filing documents, and have recently plummeted by 6% to 9%.
Measures the performance of the Cryptocurrency marketCoinDesk Market IndexIt has recently fallen by 3.1%.
The stock index closed mixed, with the Dow Jones Industrial Average (DJIA) rising slightly, but the Nasdaq Composite and the Standard&Poor's 500 Index fell 1.3% and 0.4% respectively just one day after hitting the 2023 high, because investors were worried about the unexpected move of the Bank of Canada to increase interest rates. The decision provides the latest evidence that central banks around the world are still concerned about inflation, and the monetary hawkishness that has hindered asset markets over the past year may continue.
Edward Moya, senior market analyst of Market maker Oanda, pointed out in a report that the Bank of Canada is one of the most active central banks in monetary policy. They took the lead in raising interest rates in 2022 and then suspended interest rate hikes earlier this year, "Moya wrote. The Bank of Canada has hinted that there may be further interest rate hikes, which has prompted everyone to reconsider that the Federal Reserve will end after the rate hike in July
opinion
What does the current Stablecoin balance mean?
Although the financial world pays attention to the employment data, inflation data and the impact of the U.S. Securities and Exchange Commission (SEC), a direct factor can help me understand the next step of the price of Bitcoin more deeply.
As the main tool for purchasing crypto assets, the number of Stablecoin in the exchange can be used as a precursor of purchase demand.
Although some famous exchanges provide a "legal currency entrance", that is, to directly exchange US dollars into Cryptocurrency, some investors obtain crypto assets by exchanging Stablecoin such as USDC and USDT into Cryptocurrency.
According to the on chain data companyGlassnodeFrom January 2022 to June 2023, the number of Stablecoin held in the address of the exchange decreased from 32 billion to 19 billion. The prices of BTC and ETH decreased by 45% and 50% respectively during this period
The increase of Stablecoin transaction balance in the rest of 2023 may indicate that the purchase demand is increasing.
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