MicroStrategy buys more Bitcoin, Ethereum probe, stablecoin spotlight | Weekly Recap

As an experienced analyst, I believe that this past week in the cryptocurrency market was marked by significant developments and events that showcased both challenges and opportunities for investors. The turbulence in the market appears to have been driven by a combination of factors, including miner capitulation, sustained crypto ETF outflows, and reduced stablecoin issuance.


In today’s installment of our weekly summary: MicroStrategy makes a purchase of 12,000 extra Bitcoins (BTC), the U.S. Securities and Exchange Commission (SEC) concludes its investigation into Ethereum (ETH), and stablecoins gain prominence.

  • CryptoQuant reported that the market turbulence was likely triggered by a confluence of three factors: capitulation by miners, the sustained crypto ETF outflows and reduced issuance of stablecoin tokens.
  • Despite the market downturn, investor profitability remained high with 87% of Bitcoin’s circulating supply in profit.
    Altcoins such as Pendle (PENDLE) and Toncoin (TON) bucked the overall market trend. Pendle spiked 17% in the week leading to June 22. The asset’s market cap soared to $968 million, looking to touch the $1 billion mark.
    Meanwhile, MicroStrategy leveraged the downturn to increase its Bitcoin holdings. The firm purchased nearly 12K more BTC on June 20 for $786 million at an average price of $65,883 per BTC.
  • Following the airdrop, more than 41% of the top addresses that received it sold off all their allocations shortly after the distribution event. 
  • These outflows persisted until the end of last week, resulting in a cumulative negative netflow of over $544 million in the five days leading to June 21.
  • In Australia, asset manager VanEck received the green light from Australia’s securities exchange AXS to launch the first spot Bitcoin ETF in the country.
    Asset manager 3iQ filed to list the first-ever Solana ETP, dubbed Solana Fund (QSOL), on Canada’s Toronto Stock Exchange. 
  • Also in South Korea, prosecutors presented fresh evidence supporting their claims that Terra founder Do Kwon used fake transactions to deceive investors. 
  • Fidelity Investments amended its S-1 filings for a spot Ethereum ETF with the SEC, confirming a seed investment of $4.7 million for the upcoming product. 
  • Binance faced another regulatory hurdle in India, with the authorities imposing a $2.2 million fine on the global exchange for violating anti-money laundering provisions.
  • U.S. lawmakers French Hill and Chrissy Houlahan visited Binance employee and U.S. citizen Tigran Gambaryan in a Nigerian prison, where he faces charges of AML violations. The legislators advocated for Gambaryan’s release after the visit.
  • However, Consensys confirmed that it continues its battle with the agency on whether user interface offerings for functionalities such as Swapping and Staking on MetaMask constitute securities or not.
  • Meanwhile, Uphold discontinued support for USDT alongside other “unauthorized” stablecoins as the market anticipated the implementation of MiCA’s stablecoin regulations by month’s end.
     
  • Tether also came under fire from a campaign ad in the U.S. which accused the stablecoin issuer of money laundering and corruption. The National Australia Bank, the largest bank in the country, closed its stablecoin project last week.

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2024-06-23 17:37