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The cryptocurrency market is likely down after my month for the industry. Coinshares reported that there were $ 474 million in inflows in the cryptocurrency market in July, compared to $ 481 million in outflows in June.
Bitcoin (citing BTC) was the big climber, down 5% at 2:30 PM ET, while Solana is down 5.5% over the same period. Coinbase Global lost 5.6% and Silvergate Capital lost 6% due to the decline in cryptocurrency.
An alleged Ponzi scheme has attracted attention
Today’s headlines have focused on the downsides of cryptocurrencies, with an alleged Ponzi scheme attracting attention. The Securities and Exchange Commission (SEC) charged 11 people with fraud on Monday, and Binance.US canceled eton from AMP after eton was treated as an action by Coinbase employees in the insider trading case. Put the two together and the SEC appears to be stepping up its application in the cryptocurrency industry.
Cryptocurrency exchange CoinFlex also announced that it has laid off a “significant number” of the company’s employees. The goal is to reduce employment by 50 to 60% in order to try to remain solvent. CoinFlex blocked withdrawals after accusing Roger Ver of defaulting on a $ 47 million loan and the company is trying to survive.
It didn’t help that US equity markets fell on Monday. The move isn’t sudden, but it’s another big week of growth and investors worry the news isn’t good enough to hold crypto assets.
Environmental volatility for the market
Today’s move is little more than the usual volatility in the cryptocurrency market. However, investors can draw some conclusions from the past few weeks.
The first is that the SEC takes enforcement seriously. The cases could take years to resolve, but as the SEC expands, it’s easy to see how nervous cryptocurrency investors can be about the future.
Another aspect to consider is the rapid turnover of investors during the cryptocurrency winter. Many investors probably thought cryptocurrencies were in a multi-year downtrend, but despite the negative surge in GDP and interest rates last week, the tide quickly turned.
Konno, the earnings season is in full swing and this will cause trading volatility. Silvergate announced on July 19 that the same earnings rose to $ 38.6 million from $ 20.9 million a year ago, despite market weakness. Coinbase will release its results on August 9 and the results may not be groundbreaking, but investors will want to relaunch the service and short trades to take effect.
The future is still bright for cryptocurrencies, but the road is still bumpy. Today was just a bad day for valuations, but the trend could reverse tomorrow.