Bitcoin price dropped below $66,000 during the preparation of this article, and Bitstamp will start refunds tomorrow. Investors have likely lost their appetite due to the impending refunds. Despite the July 25 meeting, XRP Coin is still lingering at $0.62. Amidst all this, there are two significant developments.
Fed and Bitcoin
Charles Gasparino from FOX Business recently made an important post on his social media account. He mentioned discussing with his colleague Eleano Terrett about a bill expected to be introduced by Lummis. He recently said:
“Eleanor and I think Senator Lummis will introduce a bill for the Federal Reserve at The Bitcoin 2024 conference. The goal will be for the central bank to hold BTC as a strategic reserve. With Donald Trump speaking there, this will be interesting.”
Trump is now clearly pro-crypto, and considering his rival Harris’s alleged statement about Bitcoin being “money for fraudsters and criminals,” it’s evident that Democrats need to take concrete steps to attract crypto investors in this election.
If Trump and Lummis announce something like this at 22:00 on Saturday, it should significantly move the markets. On the other hand, BTC price is dropping due to fears of MTGOX refunds, as Bitstamp has announced refunds starting July 25. However, Kraken refunds did not create massive pressure on the market. Moreover, staggered refunds across different exchanges are favorable for the market, but investors’ fear of sales from refunds creates a multiplier effect.
Ethereum ETF Data
At the time of writing, the total trading volume of Ethereum ETFs exceeded $800 million. However, 44% of the volume comes from ETHE issued by Grayscale, seen as potential net outflow volume. Other ETFs are interpreted as inflows.
The result here is that when the exchange closes on July 24, we will likely see net inflows when looking at all ETF data again. This figure could be below $100 million.
Interestingly, the trading volume of BTC ETFs was $1.1 billion at the time of writing, while ETH ETFs saw over $800 million in volume. This indicates a higher-than-expected demand, suggesting that in the medium to long term, this could trigger positive developments in altcoins led by ETH.
