Weekly Roundup: Crypto Decline, Trump, Kamala & More

Crypto weekly roundup

Weekly roundup for 8 September 2024 of the latest news from the Cryptocurrency world.

Cryptocurrencies Decline Amid US Jobs Data and Speculative Selloff

Bitcoin initially rose 1.6% after the release of the August US employment report but later dropped by 4.5%, hitting $53,555, the lowest since August 5. Ether also saw a 6% decline. US payrolls grew by 142,000, below the expected 165,000, leading to speculation about the Federal Reserve’s potential rate cut. However, traders later questioned the likelihood of a 50 basis-point cut. The selloff impacted both equities and cryptocurrencies, with Bitcoin closely tracking global stock movements. Speculative assets like crypto have been negatively affected, correlating strongly with broader market trends.

Barclays Upgrades Coinbase Amid Improving Regulatory Environment, Lowers Price Target

Barclays analyst Benjamin Budish upgraded Coinbase Global, Inc. from Underweight to Equal-Weight, while lowering the price target from $206 to $169. The upgrade is based on an improving regulatory landscape, increased support for crypto, and the approval of spot crypto ETFs. Despite challenges like fee compression and profitability pressures, Coinbase’s revenues remain resilient. Budish highlights Coinbase’s diversification, cost control, and industry leadership in the U.S. as key factors for a balanced risk/reward profile. However, he adjusted Coinbase’s earnings estimates due to lower crypto prices and moderated volume growth expectations.

BNY Mellon’s CEO Confident in Dollar’s Stability Amid Cryptocurrency Surge

As cryptocurrencies gain momentum, some speculate they could rival the U.S. dollar. However, Robin Vince, CEO of BNY Mellon, remains confident that the dollar will remain dominant for the foreseeable future. In an interview, Vince acknowledged the rapid rise of digital assets, which have a combined market cap of $2 trillion, but noted that cryptocurrency still has limitations as a primary currency. He sees blockchain technology as a means for banks like BNY Mellon to evolve, yet remains skeptical about individuals fully shifting to digital assets. Despite cryptocurrency’s growth and political support, Vince emphasizes the dollar’s continued importance in global finance.

Crypto Market Faces Decline, JPMorgan Seeks Catalyst for Growth

The total cryptocurrency market value dropped to $2.02 trillion at the end of last month, a 24% decrease from its March peak, according to a JPMorgan report. Analysts noted a lack of major catalysts for crypto growth and expect prices to be increasingly influenced by broader macroeconomic factors. Despite the market’s overall decline, trading volumes rose by 8%, with Bitcoin and Ether seeing a more than 10% increase in daily average volumes. Stablecoins showed resilience, with rising market caps and volumes. However, spot Bitcoin and Ether ETFs underperformed, with Bitcoin ETFs experiencing $81 million in net outflows in August.

Trump Pledges to Make U.S. Crypto Capital in Economic Agenda Speech

In a speech outlining his economic plans, Donald Trump reiterated his promise to make the U.S. the global leader in crypto and Bitcoin if re-elected president. Speaking at the Economic Club of New York, Trump briefly mentioned digital assets while focusing on broader economic reforms, such as cutting regulations and increasing domestic energy production. He also revealed his potential involvement in a crypto project tied to his family, World Liberty Finance. Additionally, Trump expressed support for Elon Musk’s idea to lead a government efficiency commission aimed at reducing federal waste.

Kamala Harris’s Campaign Allegedly Accepting Crypto Donations via Coinbase Commerce

Coinbase CFO Alesia Haas announced that U.S. Vice President Kamala Harris is using Coinbase Commerce to accept cryptocurrency donations for her campaign. The claim was made during a conversation at Citi’s 2024 Global TMT Conference, though Harris’s official fundraising site does not yet reflect this integration. Future Forward, a super PAC supporting Harris, has onboarded with Coinbase Commerce, according to a Coinbase spokesperson. This move could signify a shift in the Democratic Party’s stance on crypto, as Harris explores potential crypto legislation amid increasing regulatory discussions.

Swiss Bank ZKB Launches Crypto Services for Retail Customers

Switzerland’s fourth-largest bank, Zürcher Kantonalbank (ZKB), now allows retail customers to buy, sell, and hold Bitcoin and Ethereum through its mobile app and e-banking services. This new offering is made possible through a partnership with Crypto Finance, a digital assets broker. ZKB, which previously pioneered digital bond issuance, will securely manage private keys for customers, eliminating the need for personal wallets. The service is also available to other Swiss banks, with Thurgauer Kantonalbank being the first partner to adopt it.

Bitcoin Mining Profitability Hits Record Low Amid Rising Competition and Declining Prices

Bitcoin mining profitability reached an all-time low in August, with miners earning just $43,600 per exahash per second (EH/s) daily, a significant drop from $342,000 in November 2021. The decline is attributed to factors like increasing mining difficulty, a higher network hashrate, and the falling price of bitcoin. The network’s rising hashrate, averaging 631 EH/s in August, coupled with a 9% increase in mining difficulty, has intensified competition and operational costs, reducing profits. Despite these short-term challenges, JPMorgan highlights a long-term $74 billion opportunity in the remaining bitcoin to be mined.

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