The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
|
|
Welcome to a new week! Here’s what you need to know today in crypto. |
- Bitcoin climbed to nearly $70,000, the most since early June.
- Donald Trump announced plans for a strategic bitcoin reserve.
- Native token of DAO Compound slides more than 6%.
|
|
|
CoinDesk 20 Index: 2,361 +3.0% Bitcoin (BTC): $69,669 +2.8% Ether (ETC): $3,378 +3.6% S&P 500: 5,459.10 +1.1% Gold: $2,388 +0.3% Nikkei 225: $2,388 +0.3% |
|
|
Bitcoin climbed to nearly $70,000 at the start of the European morning, its highest since early June, as the crypto market rallied after Donald Trump's appearance at BTC 2024 in Nashville on Saturday. The Republican candidate for the presidency revealed plans to build a strategic BTC reserve if he is elected in November. Bitcoin is currently trading at around $69,650, an increase of 2.5% in the last 24 hours. The broader digital asset market has risen by about 3%, as measured by the CoinDesk 20 Index, with bitcoin cash (BCH) leading the gains, adding more than 15% to $453. |
Donald Trump pledged to "never sell" the U.S. government's seized bitcoin, in addition to announcing his intention to maintain a "strategic national bitcoin reserve," in his speech at BTC 2024. "If we don't do it, China will do it," he said of embracing digital assets. Crypto is "the steel industry of 100 years ago, you're just in your infancy," he said. "One day it probably will overtake gold." He added that Democrats keeping the White House would be a disaster for crypto. "If they win this election, every one of you will be gone." If elected, Trump said his day one plans included firing Gary Gensler, the influential chair of the SEC, who is widely reviled in the crypto industry. The promise drew huge applause from the crowd. "I didn't know he was that unpopular," Trump said. COMP, the native token of the lending protocol Compound, dropped over 6% as the decentralized autonomous organization (DAO) that runs the protocol suffered a possible "governance attack." A governance attack occurs when an attacker acquires enough voting power in a DAO to manipulate the protocol for personal gain, exploiting the permissionless and tradable nature of governance tokens. The attack on Compound involved a series of coordinated efforts to manipulate the platform’s decision-making process through significant COMP token delegations led by a whale named Humpy, who sought to allocate $24 million worth of COMP to a yield-bearing protocol he controlled called goldCOMP run by a group known as Golden Boys. The group has made multiple attempts, with the latest attempt finally passing. |
|
|
Market Insight: Today Marks 100 Days Since the Bitcoin Halving |
July 29 marks 100 days since Bitcoin's most recent "halving" event, where the reward miners receive for adding new blocks to the network is reduced by 50%. The bullish impact of the halving-led slowdown in bitcoin's supply expansion tends to kick in after 100 days, research by ETC Group shows. "The market tends to have a short memory, but the halving-induced supply deficit should just start taking effect from now on," Andre Dragosch, head of research at ETC Group, said on X. Dragosch reached that conclusion after scanning the performance data before and after the previous three halvings. The study showed that the mean excess performance – the difference between the performance a given number of days after the halving and the same number before – increases significantly 100 days after the halving, with "T-values" exceeding 2%. The T-value is a statistical figure used in hypothesis testing to determine how far the sample mean is from the population mean, which is stabilized by the sample's variability. "The key takeaway is that 100 days after the halving, the performance difference becomes statistically significant (T-value > 2) and then becomes increasingly significant until around 400 days after the Halving," Dragosch told CoinDesk. |
|
|
- Bitcoin has finally surpassed resistance of the trendline connecting March and April highs.
- The breakout could entice momentum traders, opening doors for new lifetime highs.
- Source: TradingView
|
|
|
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
|
|
|