The crypto world daily digest: Mt.Gox's BTC holdings were sold off in large quantities, causing the price to drop to $55000; Solana launches Firedancer bug bounty program; UniSat announces significant development progress in Fractal Swap

First, let's look at the trading activities of BTC ETF. According to Farside Investor data, on July 6th, the Grayscale BTCSpot ETF (GBTC) saw a capital outflow of $28.6 million. At the same time, the Fidelity BTCSpot ETF (FBTC) saw a capital inflow of $117.4 million, the Bitwise BTCSpot ETF (BITB) saw a capital inflow of $30.2 million, and the ARK 21Shares BTCSpot ETF (ARKB) saw a capital inflow of $11.3 million.

Solana launches the Firedancer Bug Bounty Program with a reward of $1 million

The highly anticipated Solana independent validators client 'Firedancer' is about to launch its first bug Bounty Program. Developed by Jump Crypto, the client aims to enhance Solana's resiliency and optimize high-frequency trading.

Developer Cantelope Peel announced that the Bounty Program will start on July 10th and last for 6 weeks. Supported by Immunefi, the Bounty Program will offer up to $1 million in rewards for developers who discover critical bugs in Firedancer v0.1, nicknamed 'Frankendancer'. Cantelope Peel stated on X platform that 'millions of execution slots have been tested and matched with Solanaprotocol', demonstrating smooth development progress for Firedancer.

Mt. Gox's held BTC was sold off in large quantities, causing the price to drop to $55000

Due to the large-scale BTC sell-off by the Japanese Cryptocurrency exchange Mt. Gox, the BTC price fell to $55,200 at one point. For the first time since May, Mt. Gox transferred 47,229 BTC to a new Wallet Address. According to data from the blockchain analysis platform Arkham Intelligence, the exchange transferred BTC from its 'cold storage' at 12:30 am UTC on July 5.

This transfer comes as Mt. Gox prepares to repay creditors, with a total of $8.5 billion worth of BTC to be used for repayment. There are concerns in the market about the possibility of a large amount of BTC flooding into the market, although some analysts have suggested that the total value of BTC sold this time may be close to $4.5 billion.

UniSat announces major developments in Fractal Swap

UniSat announces the latest progress of its Swap product. The team has been working with L1F for the past six months to promote the standardization of L1 (BTC Mainnet) brc20-swap, which will be part of the brc-20 standard upgrade. Despite the coordination with multiple teams resulting in slower progress than expected, the team has successfully validated that the product can run on BTC Mainnet.

Most of the engineering work in the Swap module has been completed. The remaining tasks include:

• Assist indexers other than UniSat Indexer to effectively identify and calculate inscriptions related to the swap module;
• Verify the hash to ensure that the calculations submitted by UniSat match those of other teams, avoiding accounting discrepancies.

In addition to promoting the standardization of swap, the team also announced that they have made progress in expanding the BTC network through a method called Fractal Bitcoin. The team expects to deliver Fractal Bitcoin in September. Fractal Bitcoin will provide a swap product - Fractal Swap, which has the same functionality as the Mainnet swap module, ensuring the project has good Liquidity from the beginning. Fractal Swap will also implement a competitive rollup mechanism, allowing users to pack their rollup results into the sequencer and earn all the Money Laundering generated by the transactions.

Market Summary

• Firedancer Bug Bounty Program: Solana's independent validators client will start the Bug Bounty Program on July 10th, lasting for 6 weeks, with rewards of up to $1 million.
• Mt. GoxBTC sell-off：Due to the BTC sell-off by Mt. Gox, the price of BTC fell to 55,200 USD at one point. The market is concerned about the potential impact of a large-scale influx of BTC.
• UniSat Fractal Swap: The development of UniSat's Swap product is progressing smoothly, and it is expected to launch Fractal Bitcoin in September, providing the same swap functionality as Mainnet.

Market Analysis: Cryptocurrency briefly Rebounded over the weekend and returned to a downward trend

Market Trends:

BTC: After rebounding to above $58,000 over the weekend, it has now fallen below $54,500.

ETH: After rebounding above $3,000, it fell significantly, currently falling to around $2,830.

AltCoin: After a rebound over the weekend, the market has generally experienced a big dump and returned to a downward fall trend.

Indicator analysis:

AHR99 Index: Today is 0.66, suitable for Auto-Invest.

Fear and Greed Index: Today is 28, indicating that investors are overly concerned about the future market.

Macro Economy:

Last Friday, the three major U.S. stock indexes collectively closed higher, indicating the market's optimistic sentiment towards the future economy.

The yield of US Treasury bonds continues to pump, with the 10-year bond yield reaching a one-month high. The pump in bond yields may exert certain pressure on risk assets (such as Cryptocurrency).

Market Hotspots

1. Inscription zone: SATS oversold rebound. Inscription Wallet Unisat announced the use of SATS as a Swap GasToken and fulfilled the commitment to the community last year. Despite positive news, the overall narrative of BTC Layer2 is not buying the market, and Inscription and Rune zones are currently cold.
2. Meme zone: Ton ecosystem leading Meme Token NOT rebounded 60% over the weekend; Trump concept Token MAGA rebounded over 50% at one point, but has since fallen back. Popular Meme Tokens have shown greater resilience in rebound market conditions, and investors should be aware of their high volatility.

Summary

The current market is experiencing a pullback, with BTC and ETH experiencing significant declines after a brief rebound. The AltCoin market is also performing poorly, with an overall downward trend. Although some zones in the Web3 market (such as MemeToken) have shown some resilience, the overall market sentiment is cautious. In terms of macroeconomics, the strong performance of the US stock market may put pressure on the encryption market due to the pump in bond yields. Investors should remain vigilant in the current market environment, properly allocate assets, and invest regularly to cope with market fluctuations.

Macro: Nasdaq and S&P 500 hit record highs as job data sparks hopes for rate cuts

On Friday, July 5th, the stock market indexes on Wall Street closed higher, with the technology-heavy Nasdaq Composite Index and the benchmark S&P 500 Index both reaching new all-time highs. New data shows weakness in the US labor market, increasing market expectations for a rate cut in September.

Large-cap stocks such as Microsoft drove the stock market to pump, with Microsoft pumping nearly 1.5% to a historical high. Meta Platforms also hit a new high in historical closing, pumping about 5.9%, driving the information technology zone to a new high.

Specific index performance: Dow Jones Industrial Average pump0.17%, S&P 500 pump0.54%, Nasdaq pump0.9%.

According to the data from the Department of Labor, employment in the United States rose slightly in June, and the unemployment rate reached its highest level in two and a half years, while wage growth also slowed down. The number of jobs added in April and May decreased by 111,000 compared to previous estimates, indicating a slowdown in employment growth. Although employment steadily increased in June, about three-quarters of the new jobs were in government and healthcare services, and the unemployment rate reached a two and a half year high of 4.1%, indicating a weak labor market.

Investors expect that these data may trigger more intense debates on interest rate cuts when the Federal Reserve meets later this month. The FedWatch tool of the Chicago Mercantile Exchange shows that the probability of a rate cut by the Federal Reserve in September has jumped from 66% before the data release to 79%.

On July 8, Asian stocks edged up slightly on Monday as investors' confidence in a US rate cut in September strengthened, while the outcome of the French elections pointed to a hung parliament, leaving the euro facing political uncertainty.

In France, the Left Alliance unexpectedly defeated the far right and won the first place, a major surprise that will prevent Marine Le Pen's National Rally (RN) from taking over the government. For investors, they are also concerned that the left's plans may disrupt many of President Emmanuel Macron's pro-market reforms.

Investors' hopes for a relaxation of US policies have provided support for the stock market. The MSCI Asia-Pacific stock index pumped 0.1%, reaching its highest point in two years last week. The Japanese Nikkei index pumped 0.2%, nearing historical highs. Chinese Blue-Chip Stocks fell 0.4%, while bond yields rose as the Central Bank introduced new monetary market operations.

On the economic calendar, Citigroup, JPMorgan, and Wells Fargo will release their earnings reports later this week. Federal Reserve Chairman Jerome Powell will present his views during the congressional hearings on Tuesday and Wednesday. The US Consumer Price Index report will be released on Thursday, with overall inflation expected to ease from 3.3% to 3.1%, while the core inflation rate remains steady at 3.4%. Germany's inflation data will also be released on the same day, and China will release consumer price and trade data this week.

In terms of commodities, oil prices fell as the market awaited the impact of Hurricane Belial on Gulf of Mexico supplies. Brent crude fell 14 cents to $86.40 a barrel, while U.S. crude fell 29 cents to $82.87 a barrel.

Gold price remains near a one-month high of $2,385 per ounce.

Author: Sherry S. & Icing. This article only represents the author's point of view and does not constitute any trading advice. This article is original, and the copyright belongs to Gate.io. Please indicate the author and source if you need to reprint, otherwise legal responsibilities will be pursued.