This week, the cryptocurrency market was relatively active and volatile, as reflected by the changes in various cryptocurrencies. Relevant events that transpired were the restart of payments by the now-bankrupt exchange Mt. Gox and its effects on the price of Bitcoin and the market. Some significant news items include Marathon Digital, developments in Russia on using stablecoins in international transactions, and Ethereum’s market share in the blockchain transaction fee. Here is a summary of the activities during the week under review.
Bitcoin price plunge to $57K
BTC’s price fell below $55,000 this week, marking the worst weekly performance of the year. This sharp fall wiped out hopes for an altcoin season. This downtrend started after hitting the record high of $73,803 in March. Some of them are the Spot ETF influx, the market liquidations, the uncertainty surrounding the US elections, and the beginning of Mt. Gox repayments. The following bearish events have consequently pushed Bitcoin by 21% from its high and taken it back to February levels.
Mt. Gox begins repayments
Mt. Gox, the longest-serving exchange that went bankrupt a decade ago, has begun compensating its creditors. This has especially hit the cryptocurrency market, Bitcoin. Although the event had a noticeable market effect, the first repayment transactions were relatively small, the largest of which was only $24 worth of Bitcoin. However, these transactions are only the initial ones, and trillions of dollars will be transferred to creditors. This repayment process has put the market in bearish territory, pushing Bitcoin to a two-month low.
Marathon digital reports June mining
Marathon Digital Holdings (MARA) revealed its June mining output, and the company has not sold any of the 1,252 BTC it holds. MicroStrategy has confirmed that it has added 500 more Bitcoins to its portfolio, increasing the total to 18,536 BTC. The mining pool of MARA generated 158 monthly blocks, thus showing an improvement of 10% over the last year. Still, the Canadian firm’s monthly output reduced YoY by 40% to mine 590 BTC in June. The CEO of MARA, Fred Thiel, a Bitcoin-focused digital asset company, affirmed the firm’s stance on holding the cryptocurrency even amid volatility.
Russia explores stablecoins for international deals
Due to the economic sanctions and current economic problems, Russia is considering using stablecoins in foreign trade. The government wants to approve cross-border transactions, especially with China, through stablecoins. Alexei Guznov, the Deputy Governor of the Bank of Russia, shared that the authorities are working on improving the regulation of stablecoins. These rules will give a legal basis for exchanging, accumulating, and using stablecoins in international payments. This is entirely in tune with Russia’s overall plan to reduce the sanctions’ effect and isolate it from the global economy.
Ethereum dominates Blockchain fee revenue
Bitcoin is still leading at $7, but Ethereum is not far behind, as it still occupies the second spot at $2. This has generated fee revenues of 728 billion in the last year. This ranks it above Bitcoin, which received $1. this averaging $302 billion in annual fee revenue. The fact that Ethereum can support smart contracts is a significant reason it is ahead of others. Still, Bitcoin is missing this feature, but its fee revenue confirms that the asset remains the store of value in the crypto market.
Thus, this week’s changes in the cryptocurrency market are typical of active trading and fluctuations. Starting with the Mt. Gox repayment process that influenced the prices of Bitcoin and ending with Marathon Digital mining updates and Russia’s interest in stablecoins, the market is constantly changing. Also, the fact that Ethereum commands the bulk of blockchain fee income shows the dynamics of the digital assets market.
