Daily News | The Fed Began to Regulate Banks' Crypto Activities; The Total TVL of RWA Track Projects Exceeds $1 Billion, Investors Eye Today's CPI Data

Crypto Daily Digest: The Federal Reserve has begun to regulate banks’ crypto activities; Is the approval of Bitcoin spot ETFs just a matter of time?

The Federal Reserve has launched a new plan to regulate bank crypto activities, and all regulated banks engaged in digital asset activities must obtain approval. According to CoinDesk, the Federal Reserve has issued a comprehensive explanation stating that regulated banks’ participation in stablecoin transactions requires prior approval. Any institution that “issues, holds, or trades US dollar stablecoin” needs to prove to regulatory authorities in advance that it can conduct this business in a “safe and reliable manner” and requires formal approval from the Federal Reserve.

This license may be difficult to obtain as each bank needs to prove that it can “identify, measure, supervise, and control the risks of its activities,” while the Federal Reserve will look for any loopholes in money laundering, customer runs, and hacking. The Federal Reserve has stated that the new plan will notify each bank when to review its digital asset exposure, and the level and intensity of regulation will vary depending on the level of involvement of each regulated banking institution in digital asset activities.

After Cathie Wood’s statement yesterday that the SEC may approve multiple Bitcoin spot ETFs simultaneously, Eric Balchunas, a senior ETF analyst at Bloomberg, also tweeted that internal “sources” at BlackRock and Invesco have revealed that Bitcoin spot ETFs will be approved within “four to six months” rather than “whether they will be approved.”

It is also worth noting that ‘we will compete for market share like cats and dogs,’ which is also the viewpoint put forward by Cathie Wood on Bloomberg’s ETF IQ, which means that all these ETFs will basically do the same thing (holding Bitcoin), so marketing will be crucial.

In terms of data fluctuations, yesterday the outstanding contract volume of CEX Bitcoin futures increased by $1 billion, marking the largest daily increase in a month. During the same period, there was no significant fluctuation in the open position contract volume of Bitcoin futures on the Chishang Exchange, indicating that the above fluctuations may be mainly driven by retail behavior.

According to DefiLlama data, the total TVL of RWA track projects exceeded $1 billion, reaching $1.057 billion, rising to the 10th place in the Protocol Categories ranking and surpassing the total TVL of Synthetics track projects.

The top 15 Ethereum NFT traders have made a profit of $299 million, with over 94.5% of their total profits coming from the blue chip NFT series launched by Larva Labs, Yuga Labs, and Art Blocks: CryptoPunks account for 70.6% of the top traders’ profits, CryptoPunks V1 accounts for 2.0%, Art Blocks accounts for 12.2%, Bored Ape Yacht Club (BAYC) accounts for 5.5%, and Meebits 3.4%.

Wall Street investment bank Bernstein stated in a research report on Wednesday that the stablecoin market is expected to grow from the current $125 billion to a $2.8 trillion tokenized digital currency over the next five years. The report states that integration with consumer platforms will lead to a “growth flywheel” of stablecoins, enabling them to attract users and expand their distribution beyond crypto native platforms.

Today’s Main Token Trends

BTC

In the short term, a potential bullish “head and shoulders” pattern is forming. It is suggested to consider entering a long position if there is a breakout above $30,888 USD or entering a short position if it drops below $28,535 USD. The overall structure should maintain the uptrend indicated by the purple line.

WLD

The four-hour chart has breached the crucial support at the historical low of $1.845 USD, suggesting a potential short-term rebound. It is recommended to remain bearish at higher levels, with targets at $1.791 USD, $1.727 USD, and $1.624 USD.

UNIBOT

Positioned at $137.23 USD and $157.56 USD last week, the cryptocurrency continues to oscillate near its historical highs. A potential second bullish wave might lead to new highs at $213.81 USD, $290.16 USD, and $335.56 USD. Short-term holding is advised.

Macro: A seemingly calm day with continuous decline, focus on today’s CPI data

The global financial markets launched the ‘all things down’ model on Wednesday yesterday.

The US stock market fell across the board, with the Dow Jones index falling 0.5%, the S&P 500 index falling 0.7%, and the Nasdaq index falling 1.2%. The current decline in the Dow Jones index is due to its departure from extreme greed, and there is currently some potential downside space.

Bitcoin fell 1.63%, while Ethereum fell 0.63%; The US dollar index fell slightly by 0.03% (currently, the index has once again broken away from extreme greed and is heading downwards); Trading in the US treasury bond bond market was light, and the yield of the 10-year treasury bond bond fell slightly to 4.011% from 4.024% the previous day; Gold prices have fallen by nearly $20 since their high point; Offshore and onshore RMB rose 0.1% against the US dollar; US crude oil rose 1.8% to hit a high for the year.

Despite falling back and forth, the news remains calm, with no US economic data or Fed officials speaking. However, the market’s current trend is still worrying.

The most closely watched is the US stock market, although the decline is not significant, there are many hidden worries behind it. This can be related to some recent ratings downgrades, and the market may still be fermenting. Investment banks such as Morgan Stanley and JPMorgan Chase have released bearish reports on US stocks. Not only that, after Fitch downgraded the US credit rating, there was a wave of bearishness in US treasury bond bonds.

The United States is experiencing its most bearish moment since the Federal Reserve’s current interest rate hike cycle, like a crack in a dam. After Moody’s downgraded several small and medium-sized banks on Tuesday, the stock market has seen widespread selling.

Tonight at 12:30 (UTC), key data will be released, including the US CPI data for July and the number of initial claims for unemployment benefits for the week. The CPI annual rate was 3%, with a forecast of 3.3%. The pre monthly CPI rate is 0.2%, with a forecast of 0.2%. The previous value of unemployment benefits for the week was 22.7, with a forecast of 23.