Read in the Digest:
- Bitcoin Reclaims $20,000 as Altcoins Trade Mixed as Inflation Hits 9.1%
- MATIC Leads Altcoin Recovery as Disney Selects Polygon for Accelerator Program
- Vitalik Buterin Counters ‘Ethereum Is a Security’ Debate Ahead of Merge
- The SEC Postpones Decision on Cathie Wood’s Spot Bitcoin ETF Proposal
- NFT Sales on GameStop’s Marketplace Top Coinbase (NASDAQ:COIN) in Two Days
Bitcoin Reclaims $20,000 as Altcoins Trade Mixed as Inflation Hits 9.1%
The Bureau of Labor Statistics announced in its June Consumer Price Index (CPI) report that inflation in the U.S. had hit 9.1% – its highest point in 41 years. The announcement drove the price of Bitcoin as low as $18,999.
However, in the following hours, the world’s largest crypto staged a rapid comeback to hit $20,361, its highest trading value in the last three days. Bitcoin now trades around the $20k mark, maintaining marginal gains of 0.21% over the last 24 hours.
The 24 hours price chart of Bitcoin (BTC). Source: CoinMarketCap
Not all altcoins have taken the same route as Bitcoin, leading to a mixed trading session. After falling by more than 6%, Ethereum is now up by 0.81% and trades at $1,082. Binance Coin (BNB), Polygon (MATIC), and Avalanche (AVAX) join ETH in the uptrend.
The 24 hours price chart of Ethereum (ETH). Source: CoinMarketCap
However, the likes of XRP, Cardano (ADA), Dogecoin (DOGE), and Polkadot (DOT) are still trading in the red. The mixed trading has seen the global market cap gain 1% in the last 24 hours to sit at $883.1 billion.
Flipsider:
- The latest CPI report has led analysts to bet that the Fed could hike its interest rate by a record 1% to control the red hot inflation.
Why You Should Care
Bitcoin’s interesting reactions to the surging inflation, rebounding back to $20k amidst fears of another rate hike, further strengthen analysis of a long-term capitulation.
MATIC Leads Altcoin Recovery as Disney Selects Polygon for Accelerator Program
Despite the fake report that claimed the U.S. inflation rate rose 10.2% year-on-year in June, causing U.S. stocks and most to tank, some cryptos defied the odds to move in the opposite direction.
Among the band of altcoins currently staging a comeback, Polygon (MATIC) sits at the forefront, gaining as much as 20% over the last 24 hours. Polygon’s rally saw MATIC move from a low of $0.5291 to an interday high of $0.6516.
The 24 hours price chart of Polygon (MATIC). Source: CoinMarketCap
MATIC’s rally was fueled by a Wednesday announcement that Polygon was selected as one of the 2022 participants for Disney’s accelerator program. Other web 3 firms include Flickplay, Inworld, Obsess, Red 6, and Lockerverse.
The Walt Disney Company (NYSE:DIS) announced that Polygon will join the project that focuses on building immersive experiences through technologies such as augmented reality (AR), artificial intelligence (AI), and non-fungible tokens (NFTs).
Flipsider:
- On a broader scheme, the popular meme coin, Shiba Inu, has been outperforming Polygon as a solution for businesses.
Why You Should Care
As with the exodus of Terra-based projects, the strong performance of the Polygon has enabled it to lead the way in the development of web 3 technology.
Vitalik Buterin Counters ‘Ethereum Is a Security’ Debate Ahead of Merge
Ethereum co-founder Vitalik Buterin has finally responded to the critics who have continually called the network’s ETH token a security.
Nick Payton, Swan Bitcoin’s marketing associate, reechoing the stance of MicroStrategy’s Chief Executive Michael Saylor, argued that assets secured by PoS consensus mechanisms and undergoes several changes are securities.
With Ethereum migrating to PoS via a network change dubbed the Merge, ETH has now been labeled a security. Defending the ETH, Buterin explained that moving to PoW doesn’t entail voting on protocol parameters, and nodes reject invalid blocks in both PoS and PoW.
Calling the claim that the ETH was a security a “bear-faced lie,” Buterin proceeded to correct some grammatical uses that may have led to confusion. He adds, “When referring to PoS, we say “it is secure,” we don’t say “it is a security.”
Flipsider:
- Rostin Benham, the chairperson of the Commodity Futures Trading Commission (CFTC), believes that Ethereum can be categorized as a commodity.
Why You Should Care
The classification of Ethereum as a commodity or security will play an important role in how it is regulated by agencies.
The SEC Postpones Decision on Cathie Wood’s Spot Bitcoin ETF Proposal
On July 12, the U.S. Securities and Exchange Commission (SEC) delayed its decision on the approval of a spot Bitcoin ETF proposed by Cathie Wood’s Arc Invest and crypto investment firm 21Shares.
The spot ETF, which would have been the first to launch in the United States, was scheduled to be approved on July 16. However, the new deadline to review the proposal will now be on August 30.
In May, ARK Invest and 21Shares amended their application after the SEC rejected their proposal for an ETF that would invest directly in bitcoin. In the amendment, ARK invest said it would use U.S. Bank as a qualified custodian.
According to the SEC’s official document, the agency needs more time to further review and consider issues raised about the proposed rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange, where the ETF will list.
Flipsider:
- Last month crypto asset management firm Grayscale sued the SEC for rejecting its application to convert the Grayscale Bitcoin Trust (GBTC) to a spot ETF.
Why You Should Care
The SEC remains reluctant to approve a Bitcoin ETF in the U.S., citing claims that the cryptocurrency market is easily manipulated.
NFT Sales on GameStop’s Marketplace Top Coinbase in Two Days
After months of anticipation, GameStop (NYSE:GME) finally launched its NFT marketplace for non-fungible tokens (NFTs). In the first two days of its much-anticipated launch, GameStop’s NFT marketplace has already outperformed Coinbase’s.
Since launching on Monday, July 11, over 3,167 ETH worth of digital art has been traded on GameStop’s beta Ethereum-based NFT Marketplace. Currently, data tracks only the top 50 NFT collections
According to data from Dune analytics, since MAY 4, When Coinbase opened its marketplace to everyone, only 1,709 ETH has been traded.
On the first day of its launch, over $1.9 million worth of NFTs were traded on the GameStop marketplace, while Coinbase has seen $1.8 million in over two months. In three days, over $3.5 million has been traded on GameStop.
Flipsider:
- While sales are buzzing on the NFT Marketplace, revenue generation has been below par.
- Charging a 2.25% fee on NFT sales saw GameStop rake in only $44,500 on its first day.
Why You Should Care
The launch of the GameStop NFT marketplace is part of a bigger scheme aimed at a digital-fueled turnaround.