Heightened regulatory concerns have caused a decline in the crypto market after notable gains last week. Bitcoin (BTC) struggled to surpass the $31,800 mark, leading to a 6.3 percent correction down to $29,700 on July 17.
In the past 24 hours, Bitcoin slipped around two percent. Ether (ETH), the second largest cryptocurrency based on market cap, fell to $1,880, reflecting a two percent drop.
Altcoins experienced even larger declines. Ripple’s XRP saw a rapid increase in value due to a partially favorable court ruling involving the U.S. Securities and Exchange Commission (SEC). Although it’s still higher than its value before the court ruling, it has now dropped 15 percent lower than its peak on Thursday, falling by 4.4 percent in the past day alone.
The native tokens of the Solana and Stellar networks, SOL and XLM, respectively, also saw significant drops during the same period. Solana lost approximately 10 percent from its Thursday high, while XLM is down by about 25 percent.
One of the day’s biggest decliners was LDO, the governance token of the liquid stacking protocol Lido Finance. The token plummeted by nearly 12 percent.
Concerns over regulations persist in the crypto market. Last Thursday, a U.S. court decided transactions involving the sale of XRP via exchanges and over-the-counter platforms complied with securities regulations. The ruling prompted a rally across the crypto market.
However, the court’s ruling did not clearly indicate whether XRP’s initial coin offering was considered a security. This lack of clarity has increased anxiety among investors because it raises the possibility of other cryptocurrencies being classified as securities.
A rumor that Binance has laid off 1,000 of its employees also raised concerns about the future of the exchange. Although Binance has denied the reports, the departure of key executives and the ongoing court action against the SEC have added to the uncertainties.
Bitcoin and other risk-on assets have faced challenges due to unfavorable macroeconomic trends. China, for instance, saw lower-than-expected gross domestic product (GDP) growth of 6.3 percent in the second quarter. Factors such as the ongoing trade war with the U.S. and the government’s attempts to tackle debt have played a role in China’s economic slowdown.
Bitcoin futures, however, saw an increase in demand despite a slowdown in Asian markets. Between July 14 and July 17, the premium for Bitcoin futures remained at a neutral-to-bullish level of seven percent, surpassing the five percent threshold.
This suggests moderate confidence among buyers (bulls) in the market, despite a recent failed attempt to push the price above $31,800. Bitcoin futures usually trade slightly higher than the current spot market price.
This higher price indicates that sellers are willing to wait longer to receive payment in exchange for higher profits. According to Cointelegraph, Bitcoin futures contracts typically trade at a premium of 5 to 10 percent per year in healthy markets.
On the other hand, the premium for stablecoin Tether has been decreasing. The Tether premium reflects the demand from retail crypto traders in China and measures the difference between peer-to-peer trades and the value in U.S. dollars.
Recently, the Tether premium in Asia reached a discount of 1.8 percent, the lowest point over six months. This trend of decreasing premiums started on July 12 and has continued its downward movement, showing moderate selling pressure in the market.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.
Crypto Gambling is not available at your location.
For US visitors, we recommend playing at Stake.us Social Casino instead.