Bitcoin, Ethereum Rise; Crypto Market’s Mini Rally
A day after US Independence Day, Bitcoin, the largest cryptocurrency by market capitalization, is up 5% in the last 24 hours. It is currently trading at around $20,107. Ethereum gained 9% to around $1,148. The global cryptocurrency market capitalization increased by 5.3% in the last 24 hours, reaching a total of $910.9 billion.
Other top cryptocurrencies including Solana, Polygon, Binance Coin and Avalanche also posted huge gains. However, the recent gains are not significant enough to offset the losses of the recent crypto crash. Bitcoin is still 70% off its November 2021 all-time high of $68,789.63; Ethereum lost 76% from Picotop, with $4,891.70 recorded in the same month.
More than $170 million liquidated in the cryptosystem last 24 hours. Ethereum leads the liquidation with $69 million. Next comes Bitcoin with $45 million. Solana by $10 million over the same period. Most of the flowing in all three assets was wiped out due to short positions. Cryptocurrencies added to the decline since then; The Fed announced a 75 basis point rate hike last month to control rising inflation. The Fed meets again on July 26. Many expect another 75-basis point hike.
The Rise of Bitcoin and Ethereum
The main reason for today’s bullish price action is the improved activity of the user network and the healthy movement in the total value of Ethereum. It seems that Bitcoin boosted out the “market tourists” and only the so-called HODLers. These market participants may be responsible for creating the final price for a leading cryptocurrency.
The number of non-zero balance addresses on the Bitcoin network is also increasing after a sharp decline in May 2022. Currently, there are nearly 42,344 million Bitcoin addresses with non-zero balances. This is the highest for this particular one. As for Ethereum, TVL in Ethereum increased by 4.47% in the last 24 hours.
Decentralized exchange trading volume also rose by 76%. The total is up to 1.73 billion dollars in the last 24 hours. NFT sales volume also hike, reaching $12.9 million in the last 24 hours. However, Ethereum-based NFT sales volume declined by 1%. Solana-based NFT sales volume added 8.19% during the same period. Stock markets are green during trading hours. SGX NIFTY index rose 1.07%; NIKKEI 225 by 1.03%, SENSEX by 1.05%.
Singapore and Crypto
The Monetary Authority of Singapore does not rule out changes to existing legislation. Accordingly, new rules are here. This places additional restrictions on retail crypto traders. According to the announcement, the Central Bank of Singapore is carefully considering the introduction of additional safeguards for consumer protection.
This may include imposing limits on retail participation. as well as the rules for using leverage during transactions in cryptocurrencies. The borderless nature of cryptocurrency markets also implies the need for regulatory coordination and cooperation globally. These issues are discussed in various international standard-setting bodies, where MAS actively participates.
The MAS chairman’s latest comments come after the regulator stepped down after reprimanding 3AC, a Singapore-based crypto fund for allegedly providing false information and exceeding the assets under the management threshold. 3AC is also facing liquidation after the firm failed to meet margin calls from lenders. Joining the growing list of crypto companies that have run into trouble in recent weeks is Singapore-based Vauld. The firm said Monday it had suspended its operations and frozen customer withdrawals.
The company claimed that it faced $197.7 million in withdrawals as of June 12. Vauld cited the explosion of Terra’s ecosystem as the reason for the mass withdrawal and the financial problems of the Celsius network and the failure of 3AC loans. Since 2017, MAS has consistently warned that cryptocurrencies are not suitable investments for the retail community. Most of them are subject to sharp speculative price fluctuations. Recent events have made the risks clear. The prices of several cryptocurrencies have fallen sharply.
