Daily Summary of the crypto world: US senators plan to introduce BTC strategic reserve legislation; The liquidity staking platform on Monad reaches a token valuation of $100 million; Jupiter launches new ecosystem TokenAPI and standards.

First look at the trading activities of BTC and ETH Spot ETF. According to Farside Investor data, on July 25th, Grayscale BTCSpot ETF (GBTC) saw a net outflow of $39.6 million. Bitwise ETH Spot ETF (ETHW) saw a net inflow of $16.3 million on the first day; Fidelity ETH Spot ETF (FETH) saw a net inflow of $34.3 million on the first day; Grayscale ETH Spot ETF (ETHE) saw a net outflow of $346.2 million on the first day;

US Senator Cynthia Lummis plans to introduce legislation for BTC strategic reserves

The most worth-following encryption-related event of this week - Trump will give a speech to about 20,000 BTC enthusiasts in Nashville, Tennessee, and Cynthia Lummis, the Republican senator from Wyoming who supports Cryptocurrency, also plans to announce that she is formulating new legislation aimed at solidifying BTC's position as a mainstream financial asset, which could fundamentally change the thriving Cryptocurrency industry.

According to three knowledgeable Cryptocurrency executives, Lummis is preparing to announce a legislation at the annual BTC conference that would require the Federal Reserve to hold some BTC as a strategic reserve asset. Lummis' plans are still uncertain and the announcement may be postponed. However, individuals who have had direct contact with some of Lummis' employees indicate that she hopes to announce her intention at the Saturday conference, just before Trump's scheduled speech; her staff hopes that Trump will support the bill and its underlying ideas.

Although the specific details of the bill are not yet clear, according to a person who has seen the draft, the bill aims to instruct the Federal Reserve to purchase BTC and hold it as a reserve asset, just like the Central Bank of the United States holds gold and foreign currency, to help manage the U.S. monetary system and maintain the stability of the value of the dollar.

Implementing BTC as a reserve asset would require the support of the President and Congress, but this is not an easy task given the skepticism of the political and economic sectors towards the effectiveness of Digital Money as a financial asset. The $2 trillion Cryptocurrency industry has long been plagued by fraud; many mainstream economists are skeptical of its use as a store of value.

Nevertheless, even if legislation is introduced (and with possible support from Trump) classifying BTC as a reserve asset, it would be a high-level government recognition that BTC is a legitimate financial asset, which is exactly what the Cryptocurrency industry has been striving for in its pursuit of mainstream acceptance.

Monad liquidity staking platform aPriori reached a token valuation of $100 million

Liquidity staking platform aPriori, based on the Monad blockchain, raised $8 million in seed funding led by Pantera Capital. The round also saw participation from investors such as Consensys and CMS Holdings. Co-founder and CEO Ray S stated that this funding round brought aPriori's fully diluted Token valuation to at least $100 million, but he declined to comment on the funding structure.

This seed round of financing brings aPriori's total financing amount to $10 million. Last year, the project raised $2 million in seed pre-financing led by Hashed and Arrington Capital. Ray said that the project was initially built as a maximal 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, with founder Ray being a former member of Jump Crypto and Pyth Data Association, aiming to build an on-chain liquidity stake platform driven by MEV on the Monad Block, combining stake rewards and MEV rewards together. MEV refers to additional value extracted from Block production beyond standard Block rewards and gas fees, through optimizing transaction ordering. Ray stated that aPriori will provide an efficient MEV market, reducing junk trades and increasing incentives for validators on Monad.

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

The Monad blockchain has not yet launched its Mainnet. Ray said that once the Mainnet goes live at some point this year, users will be able to stake their MonadToken with aPriori to earn rewards and receive a liquid staking poolToken, which can be used in other Decentralized Finance applications.

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

Jupiter launches new ecosystem TokenAPI and standards, old API will be deprecated by the end of August

Jupiter has released a new ecosystem TokenAPI and standard on the X platform. The new API enhances transaction functionality and can immediately display Tokens from new markets. These Tokens are verified daily, added to a 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 ban certain tokens based on community reports. The symbols of the top ecosystem tokens are protected and will be continuously improved over time to ensure community safety.

Jupiter said that it will abandon the old API before the end of August 2024. The response of the new API is similar to that of the old API, so it is hoped that the migration process will be smooth and easy.

Market Analysis: BTC rebounds significantly, but ETH and AltCoins are showing weakness.

Market Trends

BTC: BTC rebounded by $3,000 within the day and regained the key psychological level of $66,000. The current price is still suitable for long-term Auto-Invest. On the weekly chart, BTC has reclaimed its position above the middle band of the Bollinger Bands, which is a positive signal for long-term Technical Analysis. However, the final position on the weekly chart still needs further observation until the end of this week.

ETH: In contrast, the Rebound strength of Ethereum is relatively weak. On the daily and weekly charts, Ethereum has fallen below the Bollinger Band's midline. In addition, the Grayscale Ethereum Trust (ETHE) continues to experience significant capital outflows, with outflows exceeding $1 billion in the first three working days. This indicates that a large number of profitable positions of ETHE with a significant catch the bottom discount in the past two years may exert significant selling pressure on the market in the next two weeks.

**AltCoin：**Currently AltCoins have generally failed to pump along with Bitcoin's trend, and the market lacks consistent pumping momentum.

Data Indicators:

AHR999 Index: The AHR999 index today is 0.88, indicating that the current BTC price is still suitable for long-term Auto-Invest.

Fear Greed Index: The fear greed index remains at 68, indicating that the market sentiment has been greedy for five consecutive days. It will take some time for the market to open in the short term.

Macroeconomics

US Stocks: US stock indexes are mixed, but Tesla pumps against the market by 2%. The increase in US treasuries expands, pushing up safe-haven demand as global stock markets decline. Traders are currently betting that the Fed will cut interest rates by 68 basis points this year, compared to the previous prediction of 64 basis points on Wednesday.

Policy Trends: U.S. presidential candidate Trump will deliver a speech at the BTC2024 conference this weekend on the 27th. Currently, the community generally expects Trump's attitude towards the encryption industry to be friendly, and this needs to be followed up on continuously.

Market Hotspots

1. BTC Ecology: The BTC2024 conference is underway, and BTC's ecosystem token is performing significantly stronger than other zones. BTC rebounded by 5% during the day, while SATS pumped over 20% during the day, with an increase of over 200% in the past two weeks. Tokens such as PIZZA and ORDI also have good rebound performance.
2. Trump Concept Token: After the launch of trumpcoin on Gate.io, it pumped 100% compared to the Opening Price. Other Trump concept tokens such as maga and fight have encountered community crises. Perhaps if Trump mentions related slogans at the BTC 2024 conference, it could usher in a new wave of pump market.
3. Cat Meme coin: Previously, several strong performing Cat Meme coins experienced a significant rebound. MEW rebounded more than 20% from the intraday low, POPCAT rebounded more than 10%, and MANEKI also rebounded by more than 10%. It is expected that Cat Meme coins will remain in a strong zone in future market conditions.

Conclusion

The current market is showing some differentiation, with BTC and some BTC ecosystem tokens performing strongly, while Ethereum and most Altcoins are showing signs of weakness. The market lacks a fresh and grand narrative. The macroeconomic environment and the dynamics of the US political situation have also had a significant impact on market sentiment.

Macro: S&P 500 and Nasdaq closed lower, large-cap stocks' trends are uncertain, global markets are still in Fluctuation

On July 25, the S&P 500 and the Nasdaq Composite Index ended lower in volatile trading on Thursday, failing to recover from the previous day's losses caused by the sell-off of technology stocks. Investors are struggling to predict the future trend of large-cap stocks.

The Dow Jones Industrial Average continued to rise in early trading due to better-than-expected US GDP data and ultimately closed higher. Investors sought to avoid large-cap stocks and turn to small-cap stocks, leading to a 1.3% pump in the Russell 2000 Index, partially offsetting Wednesday's losses.

Specific index performances are as follows: Dow Jones Industrial Average pumped by 0.2%, S&P 500 index fell by 0.51%, and Nasdaq Composite Index fell by 0.93%.

Although large-cap stocks briefly rallied in afternoon trading, many stocks later retreated, with Meta Platforms, Microsoft, and Nvidia declining by 1.7% to 2.4% respectively. Market sentiment remains cautious as investors focus on the upcoming release of personal consumption expenditure price data on Friday to gauge whether the Fed will cut rates ahead of schedule.

Although heavyweight stocks have driven the market to new highs this year, Wednesday's sell-off has intensified concerns that these stocks may be overextended and face more Fluctuation in the long term.

On July 26, the yen remained stable near a 12-week high against the US dollar, while the Asia-Pacific stock market remained sluggish after experiencing its worst trading day since mid-April.

Influenced by Wall Street, the S&P 500 and the tech-heavy Nasdaq further declined on Wednesday following a large-scale sell-off. The MSCI Asia-Pacific stock index fell by 0.55%, extending the previous day's 1.88% drop. The Taiwan stock market reopened after being closed for two days due to a typhoon, and it fell by 3.3%. The Nikkei Index in Japan edged down by 0.07%. Some markets experienced a rebound, with the Hang Seng Index in Hong Kong pumping 0.74% and the Australian benchmark index pumping 0.85%.

The latest economic data from the United States has brought some optimism. The economy rose faster than expected in the second quarter, and inflation has eased. This dispels concerns about the possibility of a sudden end to economic expansion, while supporting expectations of a rate cut by the Federal Reserve in September.

The yield on the US two-year Treasury bond fell slightly to 4.4389%, but remained above the overnight low of 4.34%. This is the lowest level since early February. The yield on the 10-year Treasury bond fell slightly to 4.2466%. In other currency markets, the euro rose 0.11% to $1.0857, while the pound rose 0.1% to $1.2863.

In terms of commodities, driven by better-than-expected economic data in the United States, the expected increase in crude oil demand, and a slight pump in oil prices. Brent crude oil futures for September pumped up by 7 cents to $82.44 a barrel. WTI crude oil futures for September pumped up by 4 cents to $78.32 a barrel.

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

Author: Sherry S. & Icing. This article represents only the author's point of view and does not constitute any trading advice. This content 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.