Daily News | BTC Rebounds, But Altcoins Decline; US Senators Plan to Introduce Bitcoin Strategic Reserve Legislation; Monad's Liquidity Staking Platform has a Valuation of $100 Million

2024-07-26, 04:10

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## Crypto Daily Digest: US Senators Plan to Introduce Bitcoin Strategic Reserve Legislation; The liquidity staking platform on Monad has achieved a token valuation of $100 million; Jupiter launched new ecosystem token API and standards
First, let's examine the trading activity of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETFs. According to Farside Investor data, on July 25, Grayscale Bitcoin Spot ETF (GBTC) had a fund outflow of $39.6 million. The net inflow of Bitwise Ethereum Spot ETF (ETHW) on the first day is temporarily reported at $16.3 million; Fidelity Ethereum Spot ETF (FETH) had a net inflow of $34.3 million on the first day; The Grayscale Ethereum Spot ETF (ETHE) had a first day outflow of $346.2 million.

**US Senator Cynthia Lummis Plans to Introduce Bitcoin Strategic Reserve Legislation**

The most noteworthy crypto-related event of the week - Trump will give a speech to about 20,000 Bitcoin enthusiasts in Nashville, Tennessee this week, while Republican Senator Cynthia Lummis, who supports cryptocurrency in Wyoming, also plans to announce that she is working on new legislation aimed at consolidating Bitcoin's position as a mainstream financial asset, which could fundamentally change the thriving crypto industry.

According to three informed crypto executives, Loomis is is preparing to announce legislation at the annual Bitcoin conference that will require the Federal Reserve to hold a portion of Bitcoin as a strategic reserve asset. At present, Loomis' plan is still uncertain and may be postponed for announcement. But people who have had direct contact with some of Loomis' employees have said that she hopes to announce her intentions at Saturday's meeting, just before Trump's scheduled speech; Her employees hope that Trump can support this bill and the ideas behind it.

Although the specific content of the bill is not yet clear, according to a person who has seen the initial draft, the bill aims to instruct the Federal Reserve to purchase Bitcoin and hold it as a reserve asset, just like the US central bank holds gold and foreign currency, to help manage the US monetary system and maintain the stability of the US dollar value.

Implementing Bitcoin as a reserve asset requires the support of the President and Congress, but given the skepticism in the political and economic circles about the effectiveness of digital currencies as financial assets, this is not an easy task. The $2 trillion crypto industry has been plagued by fraud; Many mainstream economists are skeptical about its use as a means of storing value.

Nevertheless, even if legislation (and possible support from Trump) is introduced to classify Bitcoin as a reserve asset, it would still be a recognition by senior government officials that Bitcoin is a legitimate financial asset, which is precisely the goal that the crypto industry has been pursuing in seeking mainstream recognition.

**Monad's liquidity staking platform aPriori achieves a token valuation of $100 million**

aPriori, a liquidity staking platform based on the Monad blockchain, has raised $8 million in a seed round led by Pantera Capital. This round of financing has also attracted the participation of investors such as Consensys and CMS Holdings. Co-founder and CEO Ray S stated that this round of financing values aPriori's fully diluted token at least $100 million, but he declined to comment on the financing structure.

This seed round of financing brings aPriori's total financing amount to $10 million. Last year, the project raised $2 million in pre seed funding led by Hashed and Arrington Capital. Ray stated that the project was initially built as the Maximum Extractable Value (MEV) project related to the Ethereum Virtual Machine (EVM) blockchain ecosystem, but later shifted its focus to the Monad blockchain ecosystem.

aPriori was founded last year by Ray, a former member of Jump Crypto and Pyth Data Association, with the aim of building a MEV driven liquidity staking platform on the Monad blockchain that combines staking rewards and MEV rewards. MEV refers to the additional value that can be extracted from block production by optimizing transaction sorting, exceeding standard block rewards and gas fees. Ray stated that aPriori will provide an efficient MEV market, reduce junk trading, and increase validator incentives on Monad.

Ray also mentioned that aPriori will launch its platform's testnet on the first day of Monad's testnet launch, and its platform's mainnet on the first day of Monad's mainnet launch. Monad is currently running on a private internal development network. As for the release of aPriori's own token, Ray said there is currently no timetable.

Monad blockchain has not yet launched its mainnet. Ray stated that once the mainnet goes live at some point this year, users can use aPriori to stake their Monad tokens, earn rewards, and obtain a liquid staking pool token that can be used in other DeFi applications.

In addition, Kintsu, another liquidity staking protocol based on Monad, also raised $4 million in seed funding from companies such as Brevan Howard Digital and Castle Island Ventures on Thursday.

**Jupiter launched new ecosystem token API and standards, abandoning old API by the end of August
**
Jupiter has released a new ecosystem token API and standard on the X platform, which enhances trading functionality and can immediately display tokens from new markets. These tokens are verified daily, enter the trusted list, and undergo rigorous testing by the Jupiter community and users. The new API is built on the Metropolis infrastructure.

Jupiter stated that it will identify and remove counterfeit tokens that impersonate popular token names and symbols, and prohibit certain tokens based on community reports. The symbols of the top ecosystem tokens are protected and will continue to improve over time to ensure community safety.

Jupiter announced that it will abandon the old API by the end of August 2024. The response of the new API is roughly similar to that of the old API, so we hope the migration process will be easy and smooth.

## Market Trends: BTC rebounds significantly, but ETH and Altcoins show signs of decline
BTC: Bitcoin rebounded by $3,000 within the day, returning to the key psychological level of $66,000. The current price is still suitable for long-term investment. On the weekly chart, Bitcoin has regained its position above the Bollinger Bands, which is a positive signal for long-term technical analysis. However, the final position of the weekly chart still needs to be observed further at the end of this week.

ETH: In contrast, Ethereum's rebound strength is weaker. On both daily and weekly charts, Ethereum has fallen below the middle Bollinger Bands. In addition, the Grayscale Ethereum ETF (ETHE) continues to experience significant fund outflows, with outflows exceeding $1 billion in the first three working days. This indicates that the profit taking of ETHE, which has been heavily buying at a negative premium over the past two years, may create significant selling pressure on the market in the next two weeks.

Altcoins: Currently, Altcoins have not followed the trend of Bitcoin and have generally risen, resulting in a lack of consistent upward momentum in the market.
### Data Indicators:
AHR999 Index: Today's AHR999 Index is 0.88, indicating that the current BTC price is still suitable for long-term investment.

Fear & Greed Index: The Fear & Greed Index remains at 68, indicating that market sentiment has been in a greedy state for five consecutive days. The opening of the market in a short period of time still requires some emotional preparation.
### Macroeconomics
US stock market: The US stock index fluctuated, but Tesla rose 2% against the trend. US treasury bond bonds gained more while global stock markets fell, boosting the demand for safe haven. Traders are currently betting that the Federal Reserve will cut interest rates by 68 basis points this year, with a forecast of 64 basis points on Wednesday.

Policy Trend: US presidential candidate Trump will deliver a speech at the Bitcoin 2024 conference on the 27th of this weekend. At present, the community generally expects Trump's attitude towards the crypto industry to be friendly, which requires continuous attention.
### Market Hotspots:
BTC Ecosystem: The Bitcoin 2024 Conference is currently underway, and the performance of BTC ecosystem tokens is significantly stronger than other sectors. Bitcoin rebounded by 5% within the day, SATS rose by over 20% within the day, and has increased by over 200% in the past two weeks. PIZZA, ORDI and other tokens have also shown good rebound performance.

Trump Concept tokens: TRUMPCoin has risen 100% from its opening price since its launch on Gate.io. Other Trump concept tokens such as MAGA and FIGHT are facing a community crisis. Perhaps if Trump mentions relevant slogans in his speech at the Bitcoin 2024 conference, it can usher in a new wave of upward trend.

Cat Meme coins: Several previously strong cat Meme coins have experienced significant rebounds, with MEW rebounding over 20% from intraday lows, POPCAT rebounding over 10%, and MANEKI rebounding over 10%. It is expected that the cat Meme coin will remain a strong sector in the future market.
### Conclusion
The current market is showing a certain degree of differentiation, with Bitcoin and some BTC ecosystem tokens performing strongly, while Ethereum and most Altcoins performing relatively weakly, and there is no fresh grand narrative in the market. The macroeconomic environment and political dynamics in the United States also significantly impacts market sentiment.

## Macro: The S&P 500 and Nasdaq closed lower, with unclear trends in large cap stocks, and the global market remains volatile
On July 25, the S&P 500 Index and Nasdaq Composite Index ended their volatile trading on Thursday, failing to recover losses caused by the previous day's sell-off in technology stocks. Investors are working hard to predict the future trends of large cap stocks.

The Dow Jones Industrial Average continued to rise in early trading due to stronger than expected US GDP data, and ultimately closed higher. Investors seeking to avoid large cap stocks and shift towards small cap stocks led to a 1.3% increase in the Russell 2000 index, partially offsetting Wednesday's losses.

The specific index performance is as follows: the Dow Jones Industrial Average rose 0.2%, the S&P 500 index fell 0.51%, and the Nasdaq index fell 0.93%.

Although large cap stocks briefly rose in afternoon trading, many stocks subsequently fell, with Meta Platforms, Microsoft, and Nvidia falling 1.7% to 2.4% respectively. Market sentiment remains cautious as investors focus their attention on the upcoming release of personal consumer spending price data on Friday to determine whether the Federal Reserve will cut interest rates early.

Although heavyweight stocks have driven the market to historic highs this year, Wednesday's sell-off has intensified concerns that these stocks may be over stretched and will face more volatility.

On July 26, the Japanese yen stabilized near a 12 week high against the US dollar, and Asia Pacific stock markets remained sluggish after experiencing their worst trading day since mid April.

Impacted by Wall Street, the S&P 500 index and Nasdaq, which has a high proportion of technology stocks, further fell after Wednesday's large-scale sell-off. The MSCI Asia Pacific stock index fell 0.55%, continuing the previous day's 1.88% decline. The Taiwan stock market reopened after being closed for two days due to a typhoon, falling 3.3%. The Nikkei index in Japan fell slightly by 0.07%. Some markets have rebounded, with the Hang Seng Index in Hong Kong rising 0.74% and the benchmark index in Australia rising 0.85%.

The latest economic data from the United States has brought some <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a>, with faster than expected economic growth in the second quarter and some easing of inflation. This eliminates concerns about the possibility of a sudden end to economic expansion, while supporting the expectation of the Federal Reserve cutting interest rates in September.

The yield of US two-year treasury bond bonds fell slightly to 4.4389%, but it was still higher than the overnight low of 4.34%, the lowest level since early February. The yield of 10-year treasury bond bonds fell slightly to 4.2466%. In other currency markets, the euro rose 0.11% to $1.0857 and the pound rose 0.1% to $1.2863.

Regarding commodities, driven by stronger than expected US economic data, the demand for crude oil is expected to increase, resulting in a slight rise in oil prices. Brent crude oil futures rose 7 cents to $82.44 per barrel in September. In September, US West Texas Intermediate crude oil futures rose 4 cents to $78.32 per barrel.

The price of gold strengthened on Friday ahead of the release of key inflation data in the United States, with spot gold rising 0.4% to $2,374.14 per ounce, but falling 1% this week. US gold futures rose 0.7% to $2,371.00 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>