End-of-month look-back. Another month has passed by in the volatile world of cryptocurrency.
04 Sep 2023, 12:59
📆 End-of-month look-back 📆
Another month has passed by in the volatile world of cryptocurrency. As usual, it's a mix of highs and lows, victories and setbacks. Let’s look at what happened in August and see what the Bulls and Bears brought to the arena. As usual, we start with the Bulls.
1. Grayscale vs SEC
In the legal dispute with the SEC, the court ruled in favor of Grayscale. The SEC had previously denied Grayscale's application to turn its Bitcoin Trust into an ETF. The court noted that the SEC lacked a satisfactory explanation for its inconsistent approval of bitcoin futures ETFs.
While this court decision specifically benefits Grayscale, it increases the likelihood of a positive outcome for future regulatory decisions on other Bitcoin ETF applications. 🏛️🚀
2. Twitter Money License
Twitter has secured a Currency Transmitter License. While this is only valid in the state of Rhode Island, it sets a precedence and usually speeds up the process of acquiring money-transmitting licenses in other states and countries
This is a first step to allow Twitter, or X to offer cryptocurrency trading and payment services, which of course is very bullish for crypto adoption and usage.
/cryptonews/status/1696955004949516307
3. Paypal Stablecoin
This month we saw @PayPal introduce PYUSD, its own U.S. dollar-backed stablecoin. Issued by @Paxos Trust Company and running on the Ethereum blockchain. This launch indicates a growing interest from conventional financial institutions to enter the crypto space.
This development could also lead to an easier transition for users of traditional financial systems to start engaging with cryptocurrencies. 💰🪙
/CoinMarketCap/status/1697738608663306695
4.Coinbase FCM Approval
Coinbase Financial Markets has been approved as a Futures Commission Merchant (FCM) by regulatory authorities. This will enable Coinbase to offer regulated futures trading in cryptocurrencies for U.S. customers.
The move suggests the regulatory environment is becoming more accommodating for crypto-based financial products in the U.S. 📊
/News_Of_Alpha/status/1691750543754997794
5.Binance Japan
@Binance plans to extend its operations newly launched in Japan, with plans to list at least 100 different tokens. The company currently offers 34 tokens in Japan, more than any other cryptocurrency exchange in the country.
The expansion is a sign of increasing global adoption of cryptocurrencies and represents a calculated move by Binance to assert itself in various international markets. 🌍
🔴 Bearish News 🔴
1.The Crash
The crypto market experienced a significant downturn in August, with Bitcoin losing 11.29% of its value. Various factors contributed to this drop, including reports of @SpaceX selling off its Bitcoin holdings, a rise in U.S. bond yields, open interest near an ATH, and ongoing regulatory uncertainties.
The decline served as a reminder of the volatility inherent in cryptocurrency markets. 📉🐻
/TheCryptoLark/status/1692365488897319146
2. PayPal Warning
Shortly after the launch of PayPal's PYUSD stablecoin, regulators issued warnings to banks, recommending a cessation of business with PayPal.
As we have mentioned many times before, these events are actually bullish in the long term. As they most probably serve to delay market competition until the larger traditional financial entities like WallStreet firms and major banks are better equipped to enter the crypto services sector."
Even if this is not the outcome most want, it will help to speed up the adoption and mainstream usage of crypto and # blockchain-based services. 🚫💰
/Crypto_Crib_/status/1689889886441226240
3.Revolut US Exit
Revolut announced its decision to discontinue cryptocurrency services in the United States starting on September 2, 2023. The company cited the uncertain regulatory environment in the U.S. as the primary reason for this move, highlighting the challenges that financial technology companies face in navigating complex and often inconsistent regulations. ❌
4. Crypto Hacks
The month of August also saw a series of security breaches affecting various cryptocurrency platforms, with losses totaling $15.8 million.
According to data from blockchain security firm @Immunefi , users have lost $1.25 billion in cryptocurrencies to hacks and fraudulent activities year-to-date. While August showed a reduction in lost funds, down to $15.8 million compared to July's $320.5 million, any loss due to security breaches remains a negative indicator for the industry. 💔🔒
In summary, August showed us a mixed bag of events impacting the crypto market. Regulatory wins and corporate adoption suggest a positive long-term outlook, mostly favoring the Bulls. However, volatility and regulatory hurdles remain.
Just a friendly reminder, September is historically the worst month of the year for Bitcoin. History does not need to repeat, but so far, this is the trend we have to keep in mind.
Where do you see the market leaning in the short term: Bulls or Bears? Vote on our Discord!👇