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Peter Davis

An writer at FOMOdrive

  • Aug 21, 2023
  • 3 min read

Bitcoin crashes in record nine months - what's going on?

Last week, Bitcoin experienced its most significant decline since November of last year.

BTC's fall was also influenced by Elon Musk.

The popularity of NFTs that are based on Bitcoin has decreased by 97%.

Miners of Bitcoin (BTC) are transitioning to using artificial intelligence (AI).

In October, the SEC is set to give the green light to the initial applications for Ethereum futures ETFs.

Last week, Bitcoin experienced a crash, the most severe in the past 9 months, dropping by 11% and halting its descent just above the $26,000 mark.

News of Elon Musk's Space X selling its BTC reserves in the amount of $373 million was the first negative factor in this dynamic.

The minutes of the Federal Reserve's July meeting, released on Wednesday, could be a contributing factor to the negative dynamics, as they indicated a further tightening of monetary policy and a rise in rates.

Amidst this situation, yields on US government bonds have hit their highest point in the last 16 years. Max Kaiser has suggested that the decreasing value of bitcoin is a result of investors moving their money into US bonds.

Matrixport believes that the devaluation of the Chinese yuan could have a major impact on the sales of the first cryptocurrency.

The catastrophic decline in the popularity of Bitcoin Ordinals, a "Bitcoin-based NFT", has been predicted by many analysts. According to DappRadar, BRC-20s trading volume has dropped by 97% since May.

JPMorgan has noted that Bitcoin miners are looking into new business opportunities in anticipation of the halving. The bank believes that miners could potentially benefit from providing computing services in the rapidly growing AI market.

Last week, the CFTC granted Coinbase approval to open access to cryptocurrency-based futures trading, which The Block notes has added confidence to the presence of crypto assets in the US, despite the regulators' campaign against the crypto industry.

Bloomberg is reporting that the US Securities and Exchange Commission (SEC) is set to give the green light to the first applications for Ethereum futures ETFs in October. Sources have revealed that the SEC is currently evaluating 11 applications for the launch of such ETFs.

Analisa Torres, a judge, allowed the SEC's plea to present an interlocutory appeal in the Ripple case to a federal court for the assessment of an earlier decision against XRP, which concluded that the trading of the token on exchanges had no relation to securities.

Mastercard, a major player in the payments industry, has initiated a CBDC innovation study partner program with blockchain-based companies such as Ripple, ConsenSys, and Fireblocks. According to Mastercard, 93% of the world's central banks are exploring digital currency in some form, and four retail CBDCs are already in use.

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