Traders predict that most altcoins have bottomed out, BTC breaks through $58,000

Headline

▌Trader predicts that most altcoins have bottomed

Trader Eugene Ng Ah Sio posted, "Boldly predict that most altcoins have bottomed. The level of open interest has completely collapsed, many tokens are in complete apathy, and my shopping list has extended to my toes. I will be busy looking for the bottom and be the first to see it." 

Eugene Ng Ah Sio is a trader on the Binance contract platform, and his cumulative contract revenue has exceeded US$28.65 million.

▌BTC breaks through US$58,000

The market shows that BTC has broken through US$58,000 and is now at US$58,021.59, with a daily increase of 2.71%. The market is volatile, so please do a good job of risk control.

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $58054.89, with a daily increase or decrease of +2.5%;

ETH's latest transaction price is $3067.61, with a daily increase or decrease of +1.6%;

BNB's latest transaction price is $517.10, with a daily increase or decrease of +1.3%；

SOL's latest transaction price is 147.74 US dollars, with a daily increase or decrease of +1.8%；

DOGE's latest transaction price is 0.1076 US dollars, with a daily increase or decrease of +0.1%；

XPR's latest transaction price is 0.4361 US dollars, with a daily increase or decrease of +1.1%.

Policy

▌Uniswap Labs Chief Legal Officer: Urges the US SEC not to proceed with its proposed rulemaking

Uniswap Labs Chief Legal Officer Katherine Minarik said on the X platform that Uniswap Labs urged the US Securities and Exchange Commission (SEC) not to proceed with its proposed rulemaking because the rule would significantly and improperly expand the definition of "exchange" to include DeFi, etc.  

As previously reported, Uniswap Labs has hired Katherine Minarik, former legal director of Coinbase, as chief legal officer.

▌Nigerian Finance Minister urges the country's SEC to address the challenges of cryptocurrency regulation

Nigerian Finance Minister Wale Edun urged the country's newly established Securities and Exchange Commission (SEC) board of directors to address the complexity of regulating cryptocurrencies. He stressed that strict supervision is needed to maintain the market integrity of the capital market. Edun also stressed the importance of staying informed and adaptable, especially in fast-evolving areas such as artificial intelligence, digital currencies, and overall digital transformation. The SEC board, led by Mairiga Katuka, expressed optimism about Nigeria's economic prospects and pledged to drive growth with diligence and integrity.

Blockchain Applications

▌ZKsync Releases First Governance Procedures

ZKSync community ZK Nation said on the X platform that the ZKsync Association has released the first version of its governance procedures, outlining the process for submitting and voting on proposals within the ZKsync governance system.

▌The number of unique depositors for Ethereum L2 rollup hits a yearly low, down 33% from last week

According to data from The Block, the number of unique depositors for Ethereum L2 rollup solutions, especially optimistic rollup and ZK rollup, has reached its lowest level of the year, with only 34,920 users in the past week. That’s down 33% from the previous week’s total and in stark contrast to mid-April, when the number reached 250,000 in a single week. Analysts say the decline could be attributed to a variety of factors, including a shift in user preferences, a lack of ecosystem growth on the dApp side, and a lack of incentive for users to continue using these Rollups following the Arbitrum, Optimism, ZKSync, and Starknet airdrops.

Cryptocurrency

▌With an 80% surge, Tesla’s weighting in ARKK Fund has reached an all-time high

Tesla’s stock price rally in recent months has given the electric car maker a new high in Cathie Wood’s $6.2 billion flagship fund. Relevant aggregated data shows that Tesla now accounts for 15.4% of the ARK Innovation ETF (ARKK) after rebounding more than 80% from its low point this year in April. This is after the fund reduced its Tesla position in recent weeks. According to analysis by Strategas Securities, such a weight represents the strongest confidence in the stock in the 10-year history of this disruptive technology fund.

▌ARKB had a net inflow of $43.3 million yesterday

According to Farside Investors monitoring, the data of the US spot Bitcoin ETF yesterday (July 9) showed that GBTC had a net outflow of $37.5 million; BITB had a net outflow of $4.7 million; ARKB had a net inflow of $43.3 million.

▌Bitcoin miner TeraWulf announced plans to expand the scale of Bitcoin mining and artificial intelligence operations

Bitcoin miner TeraWulf announced that it has fully fulfilled its debt obligations and plans to expand the scale of its business. On July 9, the company announced its final debt repayment of $77.5 million, including prepaid fees and accrued interest. TeraWulf completed the repayment ahead of schedule and currently has no outstanding debt. TeraWulf said the payment provides it with "maximum financial flexibility" to expand and deploy infrastructure for Bitcoin mining, high-performance computing (HPC) and artificial intelligence applications.  

TeraWulf Chief Financial Officer Patrick Fleury said profitability and strong cash generation "allowed the company to complete the repayment. He said the company's lack of debt will enable it to use future profits for organic growth, potential dividends and stock buybacks. 

CEO Paul Prager said TeraWulf is continuing to identify and create applications, noting that the company has immediate access to hundreds of megawatts (MW) of infrastructure. TeraWulf plans to expand its operating infrastructure capacity from 210 MW to 295 MW by 2024, and may increase its capacity by another 300 MW in the near future.

▌Coinbase executive: Cryptocurrency popularization requires more friendly beginner applications

Coinbase senior director of engineering Chintan Turakhia said that to attract the first billion cryptocurrency users, more friendly beginner applications are needed. The current user registration process is complicated and has many obstacles, including setting up a wallet, paying transaction fees and purchasing blockchain native tokens. To simplify this process, Coinbase launched the Smart Wallet, which uses simpler login options such as account names and passwords to replace complex seed phrases. In addition, the new Smart Wallet also sponsors transaction fees by Coinbase, further lowering the threshold for use. Turakhia believes that consumer applications will be the way for cryptocurrency to become popular among the public, such as the Telegram-based mini-game Hamster Kombat, which has exceeded 239 million users in 81 days.

▌Polychain accuses former partner of reaching an undisclosed deal with Eclipse Labs

Crypto venture capital firm Polychain accused its former partner Niraj Pant of violating fund policies by reaching an undisclosed private deal with portfolio company Eclipse Labs. Sources and internal documents show that former Eclipse Labs CEO Neel Somani allocated Pant 5% of Eclipse crypto tokens in September 2022, just days after Pant instructed Polychain to lead Eclipse's $6 million pre-seed financing round. The allocation was later reduced to 1.33%, worth $13.3 million. Polychain said it did not learn of the deal until after Pant left in 2023. Pant insists the arrangement is legal, but Polychain believes the move should be disclosed under its policy to avoid conflicts of interest.

Important Economic Dynamics

▌Analysis: Powell's speech is seen as a signal that there will be no rate cut before November

Federal Reserve Chairman Powell did not give any signal about when the Fed might start cutting interest rates during his Senate testimony, saying decisions would be made "meeting by meeting." But this could be a sign that rate cuts won't come as soon as the market has priced in. Stephen Stanley, chief U.S. economist at Santander Capital Markets, said Fed officials typically prepare the market for the next move. Powell's comments about "meeting by meeting" seem to certainly rule out a rate cut at the next meeting in July, and in my opinion, a rate cut in September is not as certain as financial markets are currently pricing. I currently expect the Fed to cut interest rates for the first time in November.

▌Federal Reserve Megaphone: Powell's shift suggests that rate cuts are imminent

"Federal Reserve Megaphone" Nick Timiraos' article pointed out that Federal Reserve Chairman Powell said at a hearing on Tuesday that the trade-off between lowering inflation and maintaining a solid labor market is changing, a cautious but important shift that brings the Fed one step closer to cutting interest rates. "Rising inflation is not the only risk we face," Powell said. "We have seen a clear cooling of the labor market in many ways. This is not the source of widespread inflationary pressures in the economy right now." This assessment is noteworthy because Federal Reserve officials have long believed that an overheated labor market is the main risk to the process of suppressing inflation. Powell admitted that just two months ago, he would not have made such a judgment. In fact, Powell's comments at a conference in Portugal last week, before the U.S. Department of Labor released its June employment report, were also more cautious.

▌Viewpoint: September rate cut still faces huge risks

Powell's testimony did not contain much new content, but it did highlight the Fed's reliance on data, said Ira Jersey, an interest rate strategist. September is a possible time for a rate cut, but there is still a huge risk that it may be accused of helping the Democratic Party (before the election). At the same time, many investors are worried that inflation is still too high. Personally, I think there is not much urgency to cut interest rates. But once the Fed does start cutting interest rates, they will want to continue, and may be faster than the market prices. We expect the Fed to start cutting interest rates in November.

▌The probability of the Fed keeping interest rates unchanged in August is 95.3%

According to CME's "Fed Watch": The probability of the Fed keeping interest rates unchanged in August is 95.3%, and the probability of a 25 basis point rate cut is 4.7%. The probability that the Fed will keep interest rates unchanged by September is 26.7%, the probability of a cumulative 25 basis point rate cut is 70.0%, and the probability of a cumulative 50 basis point rate cut is 3.3%.

Golden Encyclopedia

▌What is market depth in cryptocurrency trading?

In cryptocurrency trading, market depth describes the ability of the market to withstand a large number of orders without a noticeable impact on the price. It is a liquidity indicator that shows the number of buy and sell orders for a given cryptocurrency at different price points. So, how is market depth displayed? Depth charts are often used to illustrate this data. It plots buy orders (bids) on one side and sell orders (asks) on the other side to reflect price levels.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.