1. Major cryptocurrencies succumbed to some selling pressure ahead of a busy macroweek
The market has remained subdued as a result of this week’s significant macro risk events, with major cryptocurrencies falling back slightly from their weekend highs due to profit-taking.
The official US jobs report for July will be released on Friday, and traders are looking for further signs of economic weakness in the United States.
The ISM Manufacturing PMI data for Monday and the service sector PMI data for Wednesday (both for July) will be crucial this week in determining the perception of a US recession.
If the Fed’s tightening bets are reduced, as has recently been the case, the price of cryptocurrency may rise in response to poor US economic data.
Some analysts have criticized the recent drop in Fed rate hike bets as a result of recent weak data and the Fed meeting last week (which has given a significant boost to stocks and crypto).
They argue that it is too soon to bet on a dovish shift because inflation is still so high and unlikely to return to the Fed’s 2.0 percent target any time soon.
Some of the most important G10 economic events will occur this week, including central bank decisions in Australia and the United Kingdom, which are set to be released on Tuesday and Thursday, respectively.
According to CoinMarketCap, despite a 3.0 percent drop in the last 24 hours, Bitcoin was still trading above $23,000.
At the time of writing, Ethereum was trading at $1,670, down about 2% in the last 24 hours and nearly 7% from its recent highs of $1,800.
All of the major altcoins, including BNB, XRP, ADA, and SOL, have fallen between 2 and 5% in the last 24 hours.
2. Tether is at it again, this time targeting USDT short sellers
According to Tether, the creator and issuer of USD-pegged stablecoin USDT, the fact that hedge funds see Terra’s collapse as a constructive thesis too short USDT represents an asymmetric knowledge gap between cryptocurrency market participants and entities in the traditional finance space.
Short-sellers are using conspiracy theories claiming that Tether holds large amounts of Chinese commercial paper or that USDT is created out of thin air, Tether.
“In short, the underlying thesis of this trade is extremely misinformed and outright incorrect; it’s also supported by a blind belief in what amounts to outright conspiracy theories about Tether,” according to the company.
Tether believes that USDT is fully collateralized by cash or cash equivalents.
It reaffirmed its intention in a separate blog post to reduce its total commercial paper holdings from more than $30 billion last year to zero by November.
USDT currently has a market capitalization of $66.2 billion, making it the most valuable stablecoin in circulation.
3. Aave will launch the GHO Algorithmic Stablecoin
The Protocol for Decentralized Finance According to recent DAO approval, Aave’s decentralized autonomous organization will launch the algorithmic stablecoin GHO (DAO).
The proposal was supported by 99.999 percent of the 501,000 AAVE tokens that voted in favor of it.
To obtain GHO, Aave protocol users must post collateral at a predetermined ratio (the equivalent of borrowing).
If Aave is forced to liquidate their collateral due to a decrease in its value, they will sell their GHO.
Many in the cryptocurrency community are skeptical of GHO’s success following the failure of Terra’s UST stablecoin in May.
Aave’s plan, on the other hand, will over-collateralize GHO. For the time being, GHO will only be available on the Ethereum mainnet.
4. Tiffany & Co. Introduces CryptoPunk NFT Themed Diamond Pendants
CryptoPunks Non-fungible Token (NFT) holders will be able to purchase 250 diamond-encrusted pendant necklaces from Tiffany & Co. for 30 ETH each, or slightly more than $50,000 at current prices.
The official launch will take place on August 5th. CryptoPunk NFT holders will be able to exchange their tokens for a physical necklace, which they will be able to wear as a pendant.
5. Israel tightens cash-usage restrictions
As part of its efforts to reduce disincentives to cash use, Israel intends to impose additional restrictions on cash transactions.
As of Monday, individuals could only pay less than 6,000 shekels ($1,760) in cash, while businesses could only pay less than 15,000 shekels ($4,400).
Israeli authorities prioritize digital payments as a means of combating tax evasion and other illegal activities.
According to one of Israel’s Tax Authorities, the goal is to reduce the flow of market cash due to criminal organizations’ reliance on cash.
Some crypto analysts believe that Israel’s tightening cash restrictions are a good sign for cryptocurrency adoption.
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