Ripple (XRP) Breaks $0.5 Resistance Level and Surges in Anticipation of Resolving SEC Trial, While Stablecoin Market Shrinks and Asset Market Interest in Cryptocurrencies Wanes: Weekly Overview

[블록미디어 최동녘 기자] President Joe Biden and House Speaker Kevin McCarthy have agreed to raise the federal government debt ceiling. Concerns that the U.S. government could fall into default (default) have been resolved.

Cryptocurrency markets have risen over the past week. On June 3, Korean time, Bitcoin is trading at the 27K line, up 1.8% over the past week. Altcoin market cap rose 2.8% to $620.5 billion over the same period. Bitcoin dominance decreased by 0.2% to 46.0%.

Recently, the cryptocurrency market volatility has decreased significantly. The market capitalization of stablecoins, which are used as a basis for cryptocurrency trading, has decreased for 14 consecutive months, and the trading volume of global exchanges is also at the lowest level of the year. Can Cryptocurrencies Regain Asset Market Interest?

Among the major cryptocurrencies this week, Ripple (XRP) stood out. Ripple has risen 11.9% over the past week, breaking the $0.5 resistance level. Ripple currently trades at $0.53. The expectation was reflected that the network would be activated and the legal dispute with the US Securities and Exchange Commission (SEC) would be resolved.

Last week, the Nasdaq rose 1.0% and the S&P500 rose 1.3%. Gold futures moved sideways. Investor sentiment improved as the deal on the debt ceiling was announced. Blockmedia brings you the main news to note this week.

#Ripple surges in anticipation of resolving SEC trial… positive outlook prevails
Ripple has been the best performer among major cryptocurrencies, up 11.9% over the past week. This reflects the prospect that the outcome of the upcoming trial with the SEC will come out positively. Investor interest was at an all-time high. Ripple currently trades at $0.53.

There is also a prospect that the outcome of the lawsuit will not be positive. The Bithumb Economic Research Institute analyzed in a report on the 2nd, “The SEC has continued to win the case in the past lawsuits regarding the securities judgment of virtual assets,” and “Ripple’s complete victory will be difficult.”

Ripple (XRP) Decoupling With Other Cryptocurrencies, Two Reasons For Rise – CoinGape

XRP rose 8% in May… A further rally to $0.80 is possible if $0.55 is breached.

XRP Breaks Psychological Resistance Level of $0.5, Weekly Yields 12%

XRP Performance Strong, Public Interest at Highest Level in One Year – Santiment

Bithumb Economic Research Institute, “Ripple is difficult to win… Dealings will continue” – Analysis of 24 SEC lawsuits

#Shrinking market liquidity, is the asset market losing interest in cryptocurrency?
Asset market interest in cryptocurrencies is waning. The stablecoin market, which is the basis for cryptocurrency trading, has shrunk for 14 consecutive months, and the outflow of funds from digital asset funds continues. It seems that the inflow of new money to revitalize the market is decreasing.

Domestic cryptocurrency trading volume also reflected this. In May, the cryptocurrency trading volume of domestic exchanges decreased by less than half compared to the previous month. This is below the monthly trading volume at the time of the FTX crisis, which shocked the market. It means less money and fewer people in this market.

New materials are needed to capture market interest. What good news will it take to regain interest in cryptocurrencies and asset markets?

Stablecoin Market Shrinks for 14 Consecutive Months, Potential Headwind for Cryptocurrency Prices – CoinDesk

Domestic cryptocurrency trading volume in May fell by half… Less than during the FTX crisis

Digital asset fund outflow for 6 consecutive weeks… reflect negative mood

Bitcoin – Nasdaq Correlation 0.8 → 0.2 … “Decoupling, long-term benefits for digital assets”

Bitcoin Sharks and Whales Carefully Move, Price Stalls

Cryptocurrency market, if you are looking for good news… Hong Kong and Ukraine

# Market Relief on Debt Limit Raising, Has Investment Risk Resolved?
President Joe Biden and House Speaker Kevin McCarthy have agreed to raise the federal government debt ceiling. The debt ceiling has been amended 79 times since 1960. None of these have resulted in a default. As common as it is, it’s hard to avoid escalating turmoil in financial markets amidst political debates.

Analysts are emerging in the market that “the fiscal position of the US federal government is not what it used to be.” Government burden is at an all-time high with long-term debt growth, a phenomenon that governments across the world, beyond the United States, are experiencing. Interest rates are also being raised to slow inflation. The possibility of a growing recession cannot be ignored.

The U.S. debt ceiling has crossed a major hurdle… Passing the bill in the House of Representatives (comprehensive)

[상보]U.S. Debt Ceiling Negotiations Tentatively Closed – Bitcoin Surges $27K Recovery

“US debt ceiling negotiations, fiscal spending restrictions… Impact on economic slowdown – coupled with monetary tightening”

A warning from Jim Rogers… “I’ve never seen so many debts, expenses, cash printed”

Nouriel Roubini: Additional interest rate hikes will have a big impact on the market this year

U.S. debt ceiling increase, “liquidity absorption through large-scale government bond issuance… There will be no short-term impact on cryptocurrencies”

#Visualization of domestic regulations, will blockchain companies spark? Exchange and project investigation continues
The cryptocurrency company investigation, which started with the issue of Congressman Nam-guk Kim, is continuing. A search and seizure was conducted not only on domestic exchanges such as Upbit, Bithumb, and Coinone, but also on Wemade, the developer of the WEMIX token ecosystem. The Financial Supervisory Service also announced its policy to present a practical standard for judging the securities of cryptocurrency.

Wemix, which Congressman Kim Nam-guk traded in large quantities, also sparked. It is pointed out that Wemix, a cryptocurrency issued by a listed company, can be regarded as an asset without securities. This is a topic that can be collectively applied to coins issued by domestic companies beyond simple Wemix.

If Wemix is ​​judged to be securities, issues related to Wemix will be handled in accordance with the Capital Markets Act. The area where WeMade’s WeMix can be used is also greatly limited. Now that the political world is focusing on cryptocurrency regulation, attention is being paid to what direction it will be presented.

Financial Supervisory Service “Proceeding with virtual asset securities judgment” (comprehensive)

‘Wemix Fraud’ Investigation, Seizure and Search of Upbit, Bithumb and Coinone

‘Kim Nam-guk-Wemix’ Investigation 檢, WeMade Seized and Searched – Newsis Exclusive

Kim Nam-guk’s ‘Wemix’ Securities?… Coin experts are also controversial

Lee Bok-hyeon “Financial companies and corporate insiders, strict judgment on unfair profits… Responding to unfair trading of virtual assets”

“Cryptocurrency exchange employees must not be solicited” – Created the DAXA Code of Ethics

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