Crypto Pulls Back Again, but Spot Bitcoin ETFs Rebound Ahead of Spot Ether ETF Launch

Takeaways

• Crypto prices declined up to 7.5% to kick off week: The dip came as investors registered $150 million in liquidations, and the German government began unloading bitcoin it seized from a piracy site in 2013.
• Defunct bitcoin exchange Mt. Gox will start distributing repayments in bitcoin and bitcoin cash in July: The upcoming move marks significant progress in compensating creditors following its 2014 collapse. But it's also stoking fears about more selling pressure on bitcoin.
• Coinbase sues SEC, FDIC: The largest crypto exchange in the US is seeking more information about whether the SEC and FDIC made a concerted effort to hurt the crypto industry.
• Tether ceased USDT minting on EOS and Algorand but will continue redemptions for the next 12 months: The company said it was reallocating resources to enhance security and efficiency on other blockchains.
• US spot bitcoin ETFs received $31M in net inflows Tuesday after seven straight days of outflows: Meanwhile, the launch of spot ether ETFs could come as soon as next week, with one analyst expecting up to $15 billion in inflows over the next 18 months.
• A MakerDAO governance delegate fell victim to a phishing scam, losing $11M in tokens: The scam was the latest example of phishing in the crypto sector.

Major Coins Plunge at Start of Week Amid $150M in Liquidations

Cryptocurrency markets faced a sharp downturn on Monday, with major tokens experiencing declines up to 7.5%. The price of bitcoin dropped below $60,000, after investors liquidated over $150 million over the weekend.

As a result of the declines, long positions, which bet on bitcoin to go higher, registered $150 million in liquidations. Spot bitcoin ETFs also saw outflows of nearly $175 million Monday as investors digested the news of bitcoin’s price dip. The price of bitcoin subsequently bounced back mid-week, approaching $62,000 as of 2:30 pm ET Thursday.

The latest pullback in crypto prices comes as bitcoin miners face continuous selling pressure after their rewards were cut by 50% in the latest halving event. Additionally, the German government last week began selling bitcoin it seized from a piracy site 11 years ago, with plans to unload tens of millions of bitcoin (about 50,000 bitcoin) to various exchanges. The strength of the dollar index has also reportedly put pressure on bitcoin prices.

What Are Decentralized Apps?

Since Bitcoin launched more than a decade ago, blockchain protocols are constantly being developed and refined to unlock new functionalities and use cases. Now there is a budding industry of decentralized applications (dApps) built on blockchain — everything from finance to gaming to web browsing to collecting art.

Though most dApps are built with Ethereum, all dApps are built using blockchain technology. These dApps rely on blockchains to process data through distributed networks and execute transactions with smart contracts.

Smart contracts are automated, self-executing agreements that make transactions between two parties seamless, quick, and automatic. They are the key element of dApp technology, and can be combined to create powerful software which can be applied across different industries.

Read more about Decentralized Apps.

Onward and Upward!

Team Gemini