Author | Wu Talks Blockchain
Top 10 News of the Week
1. **Mt.Gox Official: Bankruptcy Trustee Has Repaid BTC and BCH to Some Creditors**
Mt.Gox stated that on July 5, 2024, the bankruptcy trustee repaid Bitcoin (BTC) and Bitcoin Cash (BCH) to some creditors through designated cryptocurrency exchanges as per the restructuring plan. Repayment to other creditors will proceed rapidly once the following conditions are met: verification of the registration accounts and other matters; intent of the designated cryptocurrency exchanges to accept agency receiving agreements; completion of discussions between the bankruptcy trustee and the designated cryptocurrency exchanges regarding repayment; and confirmation that repayments can be conducted securely. We ask eligible creditors to wait a bit longer. According to Arkham monitoring, the Mt.Gox wallet transferred out 47.229k BTC, approximately $2.71 billion, on July 5. According to Lookonchain monitoring, since June 19, the German government, the U.S. government, and Mt.Gox have transferred a total of 17,788 BTC (about $1.08 billion). Notably, the German government has been transferring Bitcoin daily since July 1. Currently, they hold 396,210 BTC (about $22.78 billion). The breakdown is: German government holds 41,226 BTC (approximately $2.28 billion), U.S. government holds 213,297 BTC (approximately $11.72 billion), and Mt.Gox holds 141,687 BTC (approximately $7.78 billion).
2. **U.S. Reports 1.858 Million Continued Unemployment Claims for the Week Ending June 22**
The U.S. reported 1.858 million continued unemployment claims for the week ending June 22, compared to an expected 1.84 million and a previous value of 1.839 million. For the week ending June 29, the number of initial unemployment claims was 238,000, compared to an expectation of 235,000 and a previous value of 233,000. This marks the ninth consecutive week of rising unemployment claims, the longest streak since 2018. For the week ending June 22, continued claims increased to 1.86 million, the highest level since November 2021.
3. **Powell: Needs to See More Progress Before Feeling Confident to Cut Rates**
On July 3, the Federal Reserve released the minutes from the June 12 meeting, showing that Fed officials were generally content with a wait-and-see stance. Due to high inflation, Fed officials lacked sufficient confidence to cut rates, but some decision-makers at last month’s meeting called for close monitoring of signs that the labor market might weaken faster than expected. The majority of participants believed that economic activity seems to be gradually cooling. Federal Reserve Chairman Jerome Powell, speaking at the ECB Central Bank Forum, noted that the Fed has made significant progress on inflation. However, he added that he hopes to see more progress before feeling confident enough to begin rate cuts. When asked what keeps him awake at night, Powell cited the delicate balance between controlling inflation and avoiding a severe deterioration in the labor market. Powell expressed satisfaction with the downward trend in U.S. inflation after a rebound at the beginning of the year, highlighting a cautiously optimistic sentiment.
4. **U.S. Marshals Service Selects Coinbase Prime as Partner**
The U.S. Marshals Service (USMS) has selected Coinbase Prime as its partner to provide custody and advanced trading services for its “Class 1” digital assets, to protect and trade its large digital asset portfolio. USMS is the asset forfeiture arm of the U.S. Department of Justice (DOJ). The DOJ paid Coinbase $32.5 million to use its custody and trading services to handle seized cryptocurrencies.
5. **Bloomberg Analyst: Ethereum Spot ETF May List on July 15**
Bloomberg analyst James Seyffart tweeted that Bitwise Invest has again submitted a revised Ethereum ETF S-1 form and expects more issuers to submit the form this week. The analyst believes that the Ethereum spot ETF product could list later next week or during the week of July 15. Bloomberg analyst Eric Balchunas commented, “No one really knows why the SEC is taking so long to process these forms. Given the minimal comments, the listing should be soon. But it could be an issue slowing the process or just people on vacation during the summer. But all signs point to a listing this month, with more details to be revealed next week.” In a July 3 filing with the SEC, Bitwise amended its Ethereum spot ETF S-1 registration statement, including a waiver of the sponsor fee for the first $500 million in trust assets during the first six months. The document did not specify a particular launch date on the NYSE Arca but indicated that it would launch “as soon as possible” after the registration becomes effective.
6. **German Lawmaker Urges Government to Stop Selling Bitcoin**
On July 5, German lawmaker Joana Cotar strongly criticized the government’s decision to sell Bitcoin worth $195 million, arguing that this move exacerbates market volatility and could have long-term negative effects on the stability of the cryptocurrency market. These Bitcoins originated from an investigation into the illegal site Movie2kto, which had seized around 50,000 Bitcoins. Cotar stated on Twitter that the German government should reconsider this strategy and discuss with the U.S. the possibility of using Bitcoin as a strategic reserve currency. Recently, the German government has frequently transferred Bitcoin to cryptocurrency exchanges, transferring a total of 1,300 BTC (worth about $75.53 million) to Bitstamp, Coinbase, and Kraken on July 4 at 16:25 UTC+8, the largest transfer to CEX recently. The German government also transferred 1,700 BTC to address 139Po, worth $99 million, which might be moved to institutional services or over-the-counter deposits. The German government still holds 40,359 BTC ($2.3 billion).
7. **Circle to Issue USDC and Euro Stablecoin EURC in the EU Under MiCA**
Circle announced it has obtained an Electronic Money Institution (EMI) license and that its USD stablecoin USDC and euro stablecoin EURC comply with the new EU stablecoin regulation MiCA, with issuance to European customers starting from July 1. Circle claims to be the first global stablecoin issuer to comply with MiCA. Some exchanges had previously delisted the euro stablecoin EURT. Binance stated that USDC now meets MiCA standards, making it the first regulated major stablecoin in the European Economic Area (EEA), meaning USDC will continue to be offered across most of Binance’s products.
8. **Grayscale: Optimistic on Cryptocurrency Valuation Outlook for the Rest of the Year**
Grayscale stated that Bitcoin and cryptocurrency markets were pressured by multiple sell-off sources in June, but the fundamentals of the assets remained largely unchanged. Grayscale expects that spot Ethereum exchange-traded products (ETPs) will start trading in Q3 2024 and believes that cryptocurrency market valuations are likely to recover in the coming months. In June, Bitcoin faced selling pressure from Mt Gox bankruptcy legacy, German government liquidation, U.S. government sales, and Bitcoin miner sell-offs, among other sources. Meanwhile, Microstrategy purchased nearly 12,000 Bitcoins in mid-June, potentially providing some support for prices. Despite short-term liquidity affecting Bitcoin prices, Grayscale believes the fundamental asset situation remains stable. Grayscale Research is optimistic about the cryptocurrency valuation outlook for the remainder of the year, believing that the macro backdrop still supports the cryptocurrency asset class. Additionally, Standard Chartered’s forex and digital assets research head Geoffrey Kendrick predicts that Bitcoin might hit a new all-time high in August, and could reach $100,000 by U.S. election day. This forecast depends on whether President Biden continues his presidential run, as market expectations suggest this could increase former President Trump’s chances of re-election, which is considered favorable for Bitcoin due to potentially more crypto-friendly policies. Standard Chartered also shared predictions for other presidential scenarios, with the least likely scenario being Biden exiting the race by the end of July, which could see Bitcoin prices fall to between $50,000 and $55,000. Previously, Standard Chartered forecasted Bitcoin’s year-end target at $150,000 and reaching $200,000 by 2025.
9. **Sony Group Acquires Amber Japan**
One of Japan’s largest companies, Sony Group, has acquired Amber Japan for billions of yen. Singapore-based market maker Amber Group had acquired the regulated Japanese cryptocurrency exchange DeCurret in early 2022 and renamed it Amber Japan. Following the FTX collapse, Amber Group faced difficulties and was suspected of engaging in full debt-for-equity swaps. Amber Group’s investors include Temasek, Sequoia China, Pantera, Tiger, and Coinbase. Yijin Li has resigned as the representative of Amber Japan, and Jun Watanabe, Chairman of Sony Network Communications Inc., will serve as the representative of the company post-acquisition. Sony has renamed the acquired Amber Japan (WhaleFin) to S.BLOX Co. and plans to collaborate with other Sony Group businesses to enhance its cryptocurrency trading services. The revamp includes a redesigned user interface and a new mobile application to offer a more user-friendly experience. However, the specific launch date of the S.BLOX cryptocurrency exchange has not been announced. The cryptocurrency trading entity was originally the Japanese cryptocurrency exchange DeCurret, which was acquired by Amber Group’s Japanese subsidiary in 2022. In August 2023, Sony’s wholly-owned subsidiary Quetta Web Co. acquired the platform.
10. **Vitalik Discusses Methods for Faster Transaction Confirmation Times for Ethereum Users**
Ethereum co-founder Vitalik Buterin published an article titled “Deep Dive into Slot-and-Epoch Architecture: Methods for Providing Faster Transaction Confirmation Times for Ethereum Users.” Buterin discussed practical options Ethereum is exploring to accelerate transaction confirmation times, with a focus on single-slot