Key ideas:
- ETF-related news continued to make crypto news headlines, with Fidelity taking center stage.
- Binance Coin (BNB) tracked the broader crypto market despite Binance facing further setbacks in Europe.
- XRP bucked the crypto market's uptrend, with SEC v Ripple's silence weighing on investor sentiment.
US economic indicators delivered a choppy week
It was a busy week for BTC and the crypto market in general. US economic indicators fueled bets on Fed rate hikes in July and September before inflation figures on Friday signaled the near-term end of the Fed's tightening cycle. Fed.
US consumer confidence improved in June despite persistent inflation and higher interest rates. Tight labor market conditions contributed to the improvement in confidence, with inflation expectations and hopes that the Fed would hit the brakes supporting the marked improvement in confidence.
US GDP and jobless claims numbers also beat expectations. The US economy grew 2.0% in the first quarter compared to 2.6% in the fourth quarter, suggesting that the economy may do better than previously anticipated, despite the efforts of the Fed for cooling the economy. Initial jobless claims fell from 265k to 239k, the lowest level since late May.
The numbers bolstered bets on a July interest rate hike and raised chances of a move in September.
However, US inflation numbers on Friday cooled aggressive bets on a move in September. The US Core PCE Price Index rose 4.6% yoy in May from 4.7% in April. Personal spending was also softer, rising 0.1% from 0.6% in April.
While the core PCE price index reflected sticky inflation, the PCE price index rose 3.8% yoy from 4.3% in April, supporting riskier assets.
However, the NASDAQ Composite Index outperformed the cryptocurrency market this week, but trailed it for the first half of the year. The NASDAQ had its best H1 performance of this millennium. From January to June, the NASDAQ rose 31.7% compared to a crypto market gain of 52.9%.
BTC-ETF related news, lack of progress in the SEC v Ripple case and Binance issues gave direction to the crypto market.
This week, the total crypto market capitalization rose 0.72% to $1.157 billion.
SEC Sees Increased ETF Interest Despite Per-Enforcement Regulation
News related to Bitcoin exchange-traded funds continued to attract interest this week. After Blackrock Inc. (BLACK) presentation and surprise approval of the Volatility Stocks Trust 2x Bitcoin Strategy ETFCboe BZX Exchange filled in the application to seek SEC approval for the Wise Origin Bitcoin Trust. Previously, the SEC rejected the Fidelity West Origin Bitcoin Trust filing.
Market reaction to the increase in ETF activity was bullish, with BTC hitting a current year high of $31,475.
However, news related to the BTC ETF on Friday dampened the mood. The second reportedly considered BTC spot ETF applications to lack clarity and comprehensiveness. According to the Wall Street Journal, the SEC told NASDAQ and Cboe that filings by Blackrock and Fidelity, among others, were inadequate.
One area of โโfocus for the SEC was the lack of watch-sharing agreements or proper details about watch-sharing agreements. 21Shares, ARK Invest, Blackrock, Fidelity, Invesco, Valkyrie and WisdomTree reportedly amended and resubmitted their applications on Friday.
The mixed news left BTC flat for the week. On weekdays, BTC fell 0.27% to $30,466, and news from the SEC saw BTC slide from a Friday high of $31,291 to below $30,000 before leveling off.
However, for the first half of 2023, BTC rose 84.54%, outperforming the total crypto market and the NASDAQ Composite Index.
Binance woes continued to test appetite for crypto
It was another mixed week for Binance. On Wednesday, the exchange Announced Decision by Paysafe Payment Solutions Limited to terminate EUR services in September. Increasing regulatory scrutiny following SEC charges against Binance.US, Binance, and Binance CEO CZ is having a ripple effect across Europe.
Last week, Binance.US announced the temporary resolution of the USD withdrawal issue. Failure to find a new European banking partner would further erode Binance's market share.
Despite the gloomy news, binance coin (bnb) rallied from a current week low of $224.6 to close Friday at $240.4. This week, BNB is up 0.59%.
XRP bucked the broader market trend in SEC v Ripple Silence
It was another quiet week for XRP. There were no course updates SEC vs. Ripple case to provide direction. The lack of court rulings left XRP in a downtrend pattern, and the XRP community saw chances of a settlement disappear after the SEC released the William Hinman. speech related documents.
While the SEC v Ripple case remains the focal point, Ripple-related news has dampened the downside. However, reports of the American banking giant Citigroup (C.) reviewing its custody partnership with Metaco after a year was also bearish.
Ripple agreed to acquire Swiss crypto-custody platform Metaco for $250 million in May.
For the current week, XRP is down 3.59% at $0.4727.
Coinbase takes center stage in the ETF space
coin base (CURRENCY) was back in the news on Friday. Just weeks after the SEC filed charges against the NASDAQ-listed platform, Cboe's BZX Exchange named Coinbase its surveillance exchange deal partner. ARK Invest, Fidelity and Invesco are among the big names filing Bitcoin ETF applications through Cboe's BZX Exchange.
It is unclear if the selection of Coinbase will influence the SEC's decision.
Although it ended Friday with a loss of 1.21%, COIN jumped 16.4% in the week ending June 30, the best weekly outing since March 13 (+40.31%).
