Crypto News Catchup: Market Swings, Policy Shifts, and Strategic Moves

The week of July 28 to August 3 was turbulent for the global markets. Weak labor data, disappointing company earnings, and persisting interest rates triggered significant developments and sharp price swings. The crypto markets were also affected, with Bitcoin and Ether experiencing substantial drops. Bitcoin closed at $60,461, and Ether fell below $3,000. In addition, there was notable news from Morgan Stanley, which announced that its advisers could offer Bitcoin ETFs to wealthy clients, potentially indicating a shift for other banks.

Bitcoin ended the week of July 28 to August 3 with increased volatility due to factors such as weak labor data, high interest rates, disappointing company earnings, and geopolitical tensions. Both Bitcoin and Ether experienced a weekly decrease of more than 10%, mirroring extreme sell-offs across the global equity market, with Bitcoin closing just above $60,000 at $60,461.79 and Ether dropping below $3,000 to $2,895.26. Additionally, on Monday, cryptocurrencies faced significant losses due to a wave of risk aversion in global markets. Bitcoin plummeted over 17% at one point, while Ether saw its sharpest decline since 2021, with an intraday drop of more than 24%.

According to Bloomberg, Morgan Stanley has authorized its financial advisers to offer Bitcoin ETFs to wealthy clients meeting certain criteria. This move could encourage other banks to enter the digital asset sector. Since the SEC’s approval of spot-Bitcoin ETFs in January, these funds have seen significant inflows, with BlackRock’s IBIT amassing $22 billion and Fidelity’s FBTC garnering $11 billion. Overall, Bitcoin ETFs have attracted nearly $18 billion in net inflows this year.

According to Bloomberg, hackers involved in the Nomad crypto heist of 2022 exploited a market downturn by buying nearly 16,892 Ether tokens valued at around $40 million as the token’s price fell by 23%. This occurred during a larger sell-off in the crypto market, with Ether seeing its sharpest drop since 2021.

The US presidential campaign has brought cryptocurrency and digital assets to the forefront, leading to discussions and proposed policy changes by both Donald Trump and Kamala Harris.

This week, leaders in the crypto industry are scheduled to hold a private meeting with White House aides and Democratic Representative Ro Khanna to address crucial matters and suggest policy revisions. The meeting will involve high-ranking officials from Vice President Kamala Harris’s team and the White House, demonstrating the administration’s keenness to interact with the cryptocurrency field. This gathering comes after a prior discussion in July involving prominent crypto companies such as Ripple and Coinbase. Approximately 50 million Americans have invested in digital assets, making them a substantial voting bloc.

During his speech at the Bitcoin Conference in Nashville in July, former President Donald Trump promised to overturn the strict regulations imposed by the Biden administration on the cryptocurrency industry.

Hong Kong’s largest online brokerage, Futu Securities, has launched retail Bitcoin trading, allowing users to buy and sell Bitcoin and Ether using Hong Kong or US dollars. This makes Futu the first online broker in Hong Kong to offer direct Bitcoin access to retail investors, following approval from the city’s Securities and Futures Commission. This move aligns with Hong Kong’s broader strategy to establish itself as a Bitcoin and crypto hub.

The BITCOIN Act of 2024, introduced by Senator Cynthia Lummis, aims to integrate Bitcoin into the US financial system. This will be accomplished by establishing a Strategic Bitcoin Reserve (SBR) and a Bitcoin Purchase Program. The SBR will securely store Bitcoin, and the program plans to acquire up to 1,000,000 Bitcoins over five years. The funding for these purchases will come from reallocating Federal Reserve surplus funds and adjusting the valuation of gold certificates. Additionally, states will have the option to store their Bitcoin holdings in the SBR. This approach seeks to integrate Bitcoin without increasing federal debt or directly burdening taxpayers.

In conclusion, the week of July 28 to August 3 was marked by significant market turbulence, with Bitcoin and Ether experiencing sharp declines.

Some key developments included Morgan Stanley’s decision to offer Bitcoin ETFs to wealthy clients, and hackers from the Nomad heist were reported to have purchased $40 million in Ether. In the political arena, the US presidential campaign was seen to be focusing on cryptocurrency policies. Meanwhile, in Hong Kong, Futu Securities made headlines by launching retail Bitcoin trading. Furthermore, Senator Cynthia Lummis introduced the BITCOIN Act of 2024, aiming to integrate Bitcoin into the US financial system.