Main topic: Decreased venture funding for crypto companies and increased interest in secondary deals.
Key points:
1. Global venture funding for crypto companies fell by 78% in the first half of the year compared to the same period last year.
2. Crypto-focused venture capitalists still have ample funds and are increasingly buying shares in secondary deals.
3. Shares of previously high-valued crypto startups are being sold at significant discounts in secondary transactions.
Cryptocurrencies like Bitcoin have not reduced financial risks in emerging economies, but instead, have amplified them, according to a study conducted by central banks and published by The Bank for International Settlements (BIS).
China's historical dominance in the crypto industry persists despite periodic crackdowns, with many crypto companies still earning a significant portion of their revenue from the country and maintaining unofficial channels of liquidity; China's economic uncertainty, including concerns about future crackdowns and a collapsing real estate market, can impact global crypto markets.
Global investment giant BlackRock has positioned itself to benefit from the growing importance of digital assets, including Bitcoin, through its substantial stake in MicroStrategy, indicating a new phase of institutional adoption in the cryptocurrency market.
A surge in global interest in acquiring Bitcoin has been observed, with Nigeria leading the way, as investors anticipate a potential rally driven by upcoming events in the crypto sphere and the approval possibility of the inaugural spot Bitcoin exchange-traded fund (ETF) by the SEC. Bitcoin's evolving role as a possible store of value is reflected in low exchange-held supplies, while technical analysis suggests a bearish sentiment but a potential reach of $26,500 and the $30,000 milestone.
A new whitepaper called "Cointime Economics: A New Framework For Bitcoin On-chain Analysis" introduces a time-based perspective to understand the Bitcoin economy, offering insights into the economic realities and value propositions of the cryptocurrency.
Cryptocurrency is becoming an important issue in the 2024 election, with candidates and voters taking stances on its regulation and use.
A lack of basic infrastructure is hindering cryptocurrency adoption in Africa, according to Christian Duffus, founder of Fonbnk, who focuses on innovative ways to onboard new crypto users in developing markets and highlights the role of education and regulation in the process.
Bitcoin and crypto could experience significant growth in the next few months, with September expected to be a particularly eventful period, including the potential impact of U.S. bitcoin ETF filings and China declaring crypto as "legal property and protected by law."
El Salvador's experiment with making bitcoin an official currency is difficult to analyze due to its opaque nature and multiple objectives, including financial inclusion, revenue generation, and enhancing the president's reputation. The country has made bitcoin purchases, but the exact amount is unknown, and it has experienced a loss of value in its bitcoin investments. The government's digital wallet, Chivo, faced security issues, and the adoption of bitcoin for transactions and remittances has been limited. Comparatively, Argentina has surpassed El Salvador in terms of bitcoin adoption. The move to bitcoin has garnered attention for El Salvador but has also raised concerns about the lack of a coherent educational process for mass adoption.
Crypto adoption in Turkey has increased from 40% to 52%, driven by high inflation and a decreasing value of the Turkish lira, according to a survey conducted by KuCoin. Bitcoin is the most popular cryptocurrency, and younger women are increasingly investing, with 47% of investors between 18 and 30 being female.
A recent report reveals that people in Turkey are embracing crypto as a long-term investment strategy due to the depreciation of the Turkish Lira and the desire to grow wealth and protect against inflation.
A recent survey by ConsenSys revealed that Americans perceive the financial system as functioning well, but they believe there is room for improvement and that the country has the necessary technology to transform the system; 98% of respondents have heard of cryptocurrencies, with Bitcoin, Ethereum, and Dogecoin being the top three crypto assets held by Americans.
Global search traffic for the term "cryptocurrency" has reached a five-year low, potentially influenced by factors beyond price volatility such as regulatory crackdown and increased knowledge of crypto among the general public.
The lack of a fully regulated financial market in the US contradicts global economic interdependence, and as a result, the crypto industry is moving offshore rapidly; however, the US government is likely to eventually establish a clear regulatory framework and invest in blockchain R&D, thus strengthening the industry.
Only 22 out of the nearly half a billion people invested in cryptocurrency have become billionaires through their investments, with Bitcoin being the most common asset held by crypto billionaires, according to a report by Henley & Partners. The report also revealed that the US ranked third in terms of public adoption of cryptocurrencies, behind the UAE and Singapore.
A policy paper prepared under India's G20 Presidency recommends licensing crypto service providers and implementing anti-money laundering standards in the sector, while cautioning against an outright ban on cryptocurrencies due to their borderless nature. The paper also addresses concerns about stablecoins and their potential impact on financial stability.
Crypto exchange Coinbase plans to focus on non-U.S. markets, including the European Union, the United Kingdom, Canada, Brazil, Singapore, and Australia, due to their clearer crypto laws, as it seeks to expand its operations and establish partnerships with global and local banks and payment providers while ensuring compliance with governance systems. The company also aims to intensify its lobbying and visibility efforts ahead of the EU elections and engage with the G20 to create global crypto standards.
The adoption of cryptocurrencies in Turkey has risen significantly, posing potential impacts on tokens like Shiba Inu, Dogecoin, and Everlodge as their popularity and interest grow among Turkish users.
Cryptocurrency prices are less influenced by macroeconomic factors compared to traditional financial assets, with key drivers being market confidence, adoption, technology, and liquidity conditions, while traditional assets are more affected by macroeconomic drivers such as interest rates and inflation, as well as government regulations and transparency requirements.
The Blockchain Association reflects on the past five years of the crypto industry's challenges in Washington D.C. and highlights potential future areas of focus, including anti-money laundering efforts, passing crypto-related legislation, and the possibility of regulatory personnel changes.
Hong Kong remains the top jurisdiction for crypto adoption in 2023, while the US falls to third place, and Switzerland takes second place, according to a study.
Despite claims of a bear market for cryptocurrencies, indicators such as website traffic suggest that crypto adoption and demand for crypto services have actually been growing in 2023.
The percentage of US adults who owned cryptocurrency remained stagnant at 10% in 2022 after doubling in the two previous years, suggesting "buyers' remorse" among crypto owners due to the market crash and negative headlines, according to a survey analyzed by researchers at the Federal Reserve Bank of Atlanta.
Cryptocurrency is seen as a solution to the lack of sustainability and investor confidence in the African fintech space, according to experts interviewed on the Hashing It Out podcast.
Bitcoin and other cryptocurrencies are experiencing a decline in prices due to a strengthening dollar and risk-aversion, but there is hope for a rebound.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
Cryptocurrency faces regulatory challenges that could shape its future, but despite these challenges, the industry holds promise with developments such as increased institutional adoption, central bank digital currencies (CBDCs), DeFi innovation, interoperability, and expected regulatory clarity.
The main barrier to the adoption of crypto is not the user experience, but rather the lack of products that meet people's needs, indicating a product-market fit problem rather than a UX problem. Building crypto products that address core human needs such as belonging, community, and entertainment is crucial for achieving widespread adoption.
Europe is seen as a favorable environment for the cryptocurrency ecosystem due to its regulatory clarity and adoption by institutional players, in contrast to the uncertain regulatory landscape in the United States.
Brazil's central bank has observed a significant increase in crypto adoption in the country, leading to plans to tighten digital asset regulations, as imports of crypto rose by 44.2% from January to August 2023 compared to the previous year.
Crypto investment firm CoinShares is optimistic about cryptocurrency regulation in the United States as it enters the market and believes that the US is a global leader in digital asset development.
Cryptocurrencies like Bitcoin transcend being just a financial asset, as they are rooted in a socio-political movement focused on privacy and freedom from government control. This movement originated from the development of encryption technology outside of government circles and has gained favor among tech enthusiasts and advocates of minimal government interference in the economy.
Major cryptocurrencies experienced a decline due to a surge in the U.S. 10-year yield, while interest rates continued to rise driven by strong manufacturing data and the possibility of more rate hikes in the future.
Approximately 50% of crypto users invest in digital assets to improve their everyday living standards, according to a survey by Bitget, with respondents in South Korea, Canada, and Turkey having the highest priority on this goal.
The global cryptocurrency market remains significantly impacted by the collapse of FTX and other major players, resulting in lower prices, trading volumes, and venture capital investment compared to the peaks of 2021.
The market capitalization of stablecoins has dropped by 35% in the past 18 months due to factors such as reduced retail participation, surging US treasury yield, and high opportunity cost, with only a few stablecoins like USDT remaining resilient and dominant in the market. The decline is attributed to traditional finance rates exceeding crypto-native yields, and the market share decline of US-native stablecoins is seen as a result of U.S. regulation hostility. Stablecoins are considered the "killer app" of the crypto industry, comprising a significant portion of settlement activity on public blockchains. The trend is expected to reverse when there is revived interest in crypto trading, steady interest rate cuts, and a pro-crypto regulatory environment.
Web3 technologies, including cryptocurrencies like Bitcoin and USDC, are driving financial inclusion in Africa and empowering individuals by bridging gaps in traditional financial systems, as exemplified by Nigeria's Korapay, the largest cross-border remitter in the country, which processes billions in payments through crypto assets. The popularity of stablecoins like USDC in Africa can be attributed to economic disparities, currency instability, and the desire for financial independence, allowing individuals to accumulate wealth in stable digital assets and work for internet-native organizations worldwide. However, the dollarization of these economies also poses risks to fragile governments, and the consequences of regulatory actions regarding stablecoins remain uncertain. Nevertheless, the adoption of digital assets in Africa showcases human resilience and innovation in the Global South, paving the way for a more inclusive and equitable financial future.
Bitcoin and other cryptocurrencies are experiencing a decline due to concerns about the impact of escalating violence in the Middle East, which stock investors are seemingly overlooking.
Summary: Cryptocurrency has been implicated in the funding of terrorist groups like Hamas, but the $41 million received through crypto is a small portion compared to other funding sources, and crypto is actually a poor tool for terrorist financing due to its traceability.
Crypto finance, despite its claims of decentralization and independence from state-backed money, is heavily dependent on centralized platforms and is a vehicle for financial speculation rather than a means of escape from state control, according to Ramaa Vasudevan, professor of economics. Moreover, the growth of crypto will compound the volatility of global capitalism and its environmental impact is significant due to the energy-intensive process of mining and validating crypto tokens. The rise of stablecoins has been crucial in the development of crypto finance, but it is ultimately dependent on conventional currencies for stability. The recent crash of crypto finance has revealed its fragility and the absence of central banks as lenders of last resort exacerbates financial instability. Crypto finance fits into the wider picture of financialization and asset-price bubbles, promoting inequality and concentration of wealth. Ultimately, the politics of money and its relationship with the state are contested in the crypto sphere, as it neither depoliticizes nor democratizes money. Finally, crypto finance has become a battleground in the economic competition between the United States and China, with both countries striving for dominance in the digital currency space.
The crypto industry in Asia is flourishing as it attracts projects and investors looking to avoid regulatory uncertainties in the US, leveraging favorable policies and growing crypto adoption in the region.
Prominent Bitcoiners and contemporary adopters emphasize the fundamental value proposition of Bitcoin, focusing on its role in decentralization, wealth control, and privacy amidst government surveillance and restrictive policies.
BlackRock's entrance into the cryptocurrency market and adoption of blockchain technology could have a significant impact on Bitcoin, Ethereum, XRP, and other major cryptocurrencies.
Cryptocurrencies have shown slight growth amid macroeconomic challenges, as investors remain optimistic about the approval of spot Bitcoin exchange-traded funds by regulators.
Cryptocurrency exchanges and businesses are being attracted to the UAE, Dubai, and Bahrain due to their progressive regulatory approaches, offering regulatory certainty and clarity for the industry.
The United Kingdom has become the largest cryptocurrency economy in Central, Northern, and Western Europe, and ranks third globally in terms of transaction volume, receiving an estimated $252.1 billion in cryptocurrency transactions in the past year.
