Strengthens
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Flow, which rose 47.93%.
- Cryptocurrency companies have committed more than $2.4 billion to sports marketing in the past 18 months, according to data compiled by Bloomberg. Binance Holdings has signed contracts with soccer icon Cristiano Ronaldo and the Africa Cup of Nations (AFCON) tournament, while Coinbase Global has signed deals with the NBA and top star Kevin Durant. FTX in the Bahamas has agreements with Major League Baseball and franchises ranging from the NBA’s Miami Heat to e-sports, writes Bloomberg.
- Bitcoin rose as global stocks neared a two-month high and ahead of the US payrolls report. Bitcoin climbed as much as 4% to $23,422 on Friday, staying within the range of around $19,000 to $25,000 that it has held since mid-June.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Qtum, down 15.93%.
- Skeptics betting against MicroStrategy’s Bitcoin strategy are piling up positions that the company’s latest rally will fizzle out. A record 51% of MicroStrategy’s outstanding shares are currently sold short, with a nominal value of $1.35 billion, according to an article published by Bloomberg. In related news, CEO Michael Saylor announced this week that he is stepping down as CEO of MicroStrategy to focus solely on the position of Executive Chairman. The company’s president, Phong Le, will take over the role from Saylor.
- Hedge fund billionaire Steve Cohen exited his investment in cryptocurrency trading startup Radkl. The quantitative crypto trading firm, which was formed last year, has already lost at least two CEOs in 2022, writes Bloomberg.
Possibilities
- Luxury fashion brand Gucci now accepts ApeCoin payments through Bitpay in select stores in the US. ApeCoin is the cryptocurrency associated with Bored Ape Yacht Club, an NFT created by Yuga Labs. Gucci will be the first merchant to accept ApeCoin through Bitpay, a payment service provider that has been in operation since 2011, writes Bloomberg.
- Bets in the options market suggest that speculators see $25,000 as a ceiling for Bitcoin and $20,000 as a floor. This is due to a high number of outstanding call and put contracts at these strike prices, according to data compiled by CoinGlass.
- Crypto platform Voyager Digital LLC, which filed for bankruptcy protection last month, said it expects to resume user access to its cash withdrawal app next week. The withdrawal is expected to start on August 11 for dollar holdings only, according to an article published by Bloomberg.
Threats
- The SEC this week charged 11 people for their roles in creating and promoting Forsage, a fake crypto pyramid and Ponzi scheme. The scheme raised more than $300 million from private investors worldwide, including in the United States, according to the announcement on the SEC website.
- Nomad, a bridging protocol for transferring crypto tokens across different blockchains, lost close to $200 million in a security exploit on Monday. The software system was drained of funds over hours and in small batches by various accounts, blockchain data shows. The attack makes Nomad the last bridge to suffer an exploit this year, writes Bloomberg.
- Hackers targeted the Solana ecosystem early Wednesday, with thousands of wallets affected, in the latest hit to the cryptocurrency market. A reported $5.2 million in crypto assets has been stolen so far from more than 7,900 Solana wallets, according to blockchain investigative firm Elliptic, Bloomberg writes.
