Daily News | BTC Expected to Breakthrough $69K, Market Sentiment Continues Greedy; Biden Withdraws from Presidential Campaign, Causing Related Tokens to Plummet

2024-07-22, 04:00

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## Crypto Daily Digest: BTC is expected to break through $69,000, and the sentiment in the crypto market continues to lean towards greed; Biden withdraws from presidential campaign, BODEN token drops 44%; Rollup.Finance announces that it will cease operations; Strict laws in South Korea regarding crypto exchanges come into effect
First, let's examine the trading activity of the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETF. According to Farside Investor data, on July 19, Grayscale Bitcoin Spot ETF (GBTC) had a capital outflow of $20.3 million. Meanwhile, iShares Trust Bitcoin Spot ETF (IBIT) received $116.2 million in inflows, Fidelity Bitcoin Spot ETF (FBTC) received $141 million in inflows, VanEck Bitcoin Spot ETF (HODL) received $41.8 million in inflows, and Bitwise Bitcoin Spot ETF (BITB) received $44.6 million in inflows.

With the strong rebound of mainstream token prices, the crypto Fear and Greed Index has reached its "greediest" level in over a month. This corresponds to the opposite scenario of last week's "extreme fear," representing the market view of ordinary traders. Some traders believe BTC is expected to break through its historic high of $69,000.

**Joe Biden withdraws from presidential campaign, BODEN token drops 44%**

US President Joe Biden announced that he will not seek re-election in the upcoming 2024 US presidential election. In the past few weeks, Biden has faced increasing pressure to withdraw from the race, with several current senators demanding that he do so, and reports suggesting that the former President Barack Obama do so.

Biden's statement, released on Sunday, said that resigning is in the interests of the party and the country. He stated that he would support Vice President Kamala Harris as the Democratic Party's candidate. With the release of this news, the Meme coin Jeo Boden token plummeted by 44%. Meanwhile, the tokens of other potential competitors have significantly increased. Especially, a meme called Kamala Horris has risen by 52%, while the meme Gabin Noosum has risen by 115%.

Relatively speaking, after Republican presidential candidate Donald Trump's opponent withdrew from the race, the price of tokens named after him also increased. Doland Tremp is the most affected meme, with a 24% increase since the news was exposed.

Biden's poor performance in last month's debate sparked discussions about possibly replacing him as the presidential candidate, and he has since faced increasing pressure. According to ABC News, senior Democrats, including Senate Majority Leader Chuck Schumer, have called for his withdrawal over the past week.

As the Democratic Party prepares to elect its presidential candidate at next month's Democratic National Convention in Chicago, it is currently unclear whether the party will follow Biden's lead and nominate Harris. According to a top-tier contract from Polymarket, the probability of Vice President Harris becoming a candidate is 81%, while the likelihood of a regular "other" candidate is 12%.

**Rollup.Finance announces that it will soon cease operations**

The decentralized derivatives trading platform Rollup Finance announced that it would cease its operations. The project stated on X: “During the 16 months of continuous operation, we withstood the storm of the bear market, increased trading volume, retained traders, and brought innovation through partnerships. However, due to the lack of zkSync resources and product market fit, we re-evaluated our position and decided to take this step.”

Rollup.Finance indicates that the user's assets are safe, and the user has one month to liquidate and withdraw funds. Orders not closed upon expiration will be automatically liquidated, and affected users will have another month to withdraw funds. The platform will shut down completely on September 21, 2024, and related applications will be unavailable. Afterwards, official email, Twitter account, and Discord chat support channels will be discontinued.

Rollup.Finance expresses its deepest gratitude to early users and investors, and states that some team members will continue to strive for the decentralized future of DeFi and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>.

**Strict laws in South Korea regarding crypto exchanges come into effect**

On July 19, new regulations from South Korea's financial security regulatory agency came into effect. They aim to protect users from purchasing and storing crypto assets through virtual asset service providers (VASP).

According to a statement released by the Financial Services Commission (FSC) of South Korea on July 17, VASP must take multiple measures to ensure the security of users' cryptocurrencies. These include purchasing insurance for users' crypto assets to prevent hackers and malicious attacks, separating customers' crypto assets from exchange assets, and securely storing customers' deposits in banks.

VASP must also maintain a certain level of due diligence to prevent money laundering on its platform and must report any suspicious transactions to regulatory authorities.

The FSC document states that VASP should always maintain a suspicious transaction monitoring system and immediately report suspicious transaction activities to the Financial Supervisory Service (FSS).

South Korean crypto exchanges have expressed concerns about these regulations, believing that they may lead to many tokens being taken down. On July 3, Cointelegraph reported that as part of the new crypto user protection law, 20 South Korean crypto exchanges will review a total of 1,333 cryptocurrencies over the next six months. The Digital Asset Exchange Alliance (DAXA) stated that there is "little possibility of a large-scale delisting occurring at once.

Meanwhile, the ruling party of South Korea, the National Power Party, has officially proposed postponing the implementation of the country's policy of taxing profits from crypto trading. The party points out that the current sentiment towards crypto assets is deteriorating and that quickly taxing virtual assets is "not wise at the moment."

## Market Trends
BTC briefly broke through $68,000 this morning, with spot ETF inflows exceeding $2 billion in the past two weeks.

ETH has broken through the $3,500 mark, and the ETH ETF is expected to go public for trading on July 23. Some communities believe it may be a short-term bearish trend after the ETH ETF is approved.

SOL has returned above $180, and the Meme token remains the most impressive sector among Altcoins.
### Data Indicators:
Today, the AHR999 index is at 0.95, indicating that the market has crossed the bottom zone and is gradually rising. The Fear Greed Index is 70, and compared to the extreme fear of Bitcoin's price of $53,500, market sentiment has entered a crazy state in a short period.

The Fear Greed Index is at 70, and compared to the extreme fear at the BTC price of $53,500, market sentiment has entered a frenzy in a short period of time.
### Macroeconomics:
US stocks: The S&P 500 fell 1.97% last week, the Nasdaq Composite fell 3.65%, and the Dow Jones Industrial Average rose 0.72%. Tech giants like Microsoft, Google, and Apple have all experienced significant declines.

Political Dynamics: Biden announces withdrawal, Black Vice President Harris will become the Democratic Party's presidential candidate, and Trump's chances of winning on Polymarket have dropped to 63%.
### Market Hotspots:
BTC: BTC's substantial rise broke through $68000, only 8% away from a historical high, driving the overall market up. This week's Bitcoin Nashville Conference will be held on the 27th, and US presidential candidate Trump will attend the conference. In addition, the private plane of the world's richest man Musk has also landed in Nashville, and there are rumors in the market that Musk may also attend the Bitcoin conference. The profile picture of Musk's X account has also been replaced with a laser eye profile picture. The last time he changed his profile picture to this one was in April 2019, after which BTC entered a bull market stage.

<a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> ecosystem: SOL returns above $180, driving the overall strong performance of the Solana ecosystem. WEN, POPCAT, MEW, and other cat Meme coins have surged. POPCAT is about to become the first cat-themed Meme coin to break through the $1 billion mark in market value, and MEW also reached a historic high over the weekend. The current total market value of cat themed Meme coins is $2.6 billion, and the current total market value of dog themed Meme coins is $39.2 billion.
### Summary
Overall, market sentiment has shifted from fear to frenzy in a short period, mainly driven by the strong rise of mainstream currencies such as BTC and ETH. In terms of macroeconomics, despite the poor performance of technology stocks, the crypto market seems to have been independently driven, especially by the upcoming Bitcoin conference and Musk's potential participation. Meanwhile, Meme coins in the Solana ecosystem have also performed well and become one of the market hotspots.

Investors should monitor upcoming major conferences and ETF listings, which may significantly impact market sentiment and price trends. Meanwhile, attention should be paid to the short-term downside risk of market overheating.

## Macro: Global technical malfunction, Wall Street closing down; After Biden's exit, Asian stock markets are under pressure
On July 19, the US stock market continued to decline on Friday, as market uncertainty intensified due to the ongoing chaos caused by global technological failures. The technical issues of cybersecurity company Crowdstrike have caused disruptions to operations in multiple industries, including aviation, banking, and healthcare, leading to the collapse of Microsoft's Windows operating system. Although vulnerabilities have been discovered and fixed, some services are still affected.

The specific three major indices: the Dow Jones Industrial Average fell 0.93%, the Standard&Poor's Index fell 0.71%, and the Nasdaq Index fell 0.81%.

From a weekly perspective, both the Nasdaq and S&P 500 indexes recorded their worst week performance since April, while the Dow Jones index ultimately did not escape a decline after hitting a historic high earlier this week.

On July 22, Asian stock markets opened lower on Monday as China's central bank unexpectedly cut interest rates but failed to boost market sentiment. At the same time, Wall Street futures strengthened after US President Joe Biden announced his withdrawal from the race. The People's Bank of China has lowered short-term interest rates by ten basis points to lower long-term borrowing costs and bond yields. Previously, Beijing released a policy document outlining its economic plan.

The MSCI Asia Pacific stock index fell 1.0%, the Nikkei index in Japan fell 1.1%, the benchmark index in South Korea fell 1.5%, and the Taiwan stock market fell 2.4%.

Multiple important economic data releases will be released this week, and the Federal Reserve will release its highly anticipated inflation indicator on Friday, ending this week's trading. The core personal consumption expenditure index is expected to rise by 0.1% in June, with an annual rate slightly dropping to 2.5%. The market expects this to lay the foundation for a rate cut in September, with futures prices showing a 97% chance of a rate cut in September. In addition, it is expected that the GDP growth rate in the second quarter will increase from 1.4% in the first quarter to an annualized growth rate of 1.9%.

In terms of commodities, due to geopolitical factors, oil prices have slightly increased. There has been no progress on the Gaza ceasefire agreement due to the intense fighting between the Israeli army and Palestinian militants in Rafa. Brent crude oil rose 22 cents to $82.85 per barrel, while US crude oil rose 36 cents to $80.49 per barrel.

According to a report released by Invesco, geopolitical competition has become the biggest concern for investors, even surpassing inflation. This has sparked a preference for safe-haven assets such as gold. The price of gold remains at $2,407 per ounce, close to the historical high of $2,483.60 set last week.

<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>

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