Do you know that the cryptocurrency market has grown significantly due to new traders and investors entering the crypto space daily to leverage the market’s potential? I know you are wondering how, because of the DIPs that happen But it is essential to know that you may not fully understand the activities in this emerging market if you are not following the latest news and trends. Hence the need to stay informed with the Q2 2023 cryptocurrency news roundup.
Since the beginning of 2023, many things have happened in the cryptocurrency market (If you subscribed to my Email newsletter, you’d have probably been receiving some of my gists), as popular crypto assets have had some significant price movements due to their volatile feature. Also, the market recorded new entrants, especially meme coins, in their presale stages before getting listed on major crypto exchanges like Binance and Coinbase.
Therefore, we will touch on these topical issues during this cryptocurrency news round-up for the second quarter (Q2) of 2023.
Market Analysis And Trends
- Increased Institutional Adoption: The cryptocurrency market has been witnessing a growing interest from institutional investors, such as hedge funds, asset management firms, and even some traditional financial institutions. This trend is expected to continue in the coming years, as more institutions recognize the potential of cryptocurrencies as an investment asset class.
- Regulatory Environment: Regulatory developments and government interventions can significantly impact the cryptocurrency market. Different countries are adopting various approaches to regulate cryptocurrencies, which can lead to both positive and negative effects. Clear and favorable regulations could foster market growth, while stricter regulations might create uncertainty and hinder adoption.
- Decentralized Finance (DeFi): DeFi has emerged as one of the most significant trends within the cryptocurrency space. It refers to the use of blockchain technology and cryptocurrencies to recreate traditional financial systems and services, such as lending, borrowing, and trading, in a decentralized manner. The growth of DeFi projects and their potential to disrupt traditional financial systems could shape the market in the coming years.
- Central Bank Digital Currencies (CBDCs): Several countries are exploring the development of their own central bank-backed digital currencies. CBDCs could provide a bridge between traditional fiat currencies and cryptocurrencies, potentially increasing the overall acceptance and adoption of cryptocurrencies.
Major Events And News Stories
$300 Million Lost To Crypto Hacks In Q2 2023
A significant highlight of the event in Q2 2023 was the quarterly report released by CertiK, revealing that over $300,000 million worth of crypto assets were lost to crypto hacks and exploited in the second quarter of the year. But the firm stated a 58% decline in crypto lost from 2022, which recorded about $745 million from hacks and exploits.
This drop in crypto theft in Q2 can be attributed to adopting AI and machine learning to reinforce security features of crypto assets against schemes that could expose their funds to risks.
BlackRock Refiles For Bitcoin ETF With SEC
Meanwhile, BlackRock, the world’s largest asset manager, refiled its application for a Bitcoin exchange trust fund (ETF) with the United States Securities and Exchange Commission (SEC) in June 2023. This was the second proposal from BlackRock following the disapproval of its initial application in January 2021.
This decision of BlackRock has caused so much buzz in the crypto market as experts believe that the approval of the spot Bitcoin ETF proposal would allow traders to earn from trading BTC without owning a Bitcoin.
Following this move by Blackrock, other firms are submitting their applications for a spot in Bitcoin ETF with the SEC. Fidelity Investments, Grayscale, and Ark Investment Management have joined the race to become the first provider of Bitcoin ETFs in the United States.
SEC Files Lawsuit Against Binance And Coinbase
Furthermore, Q2 2023 saw the SEC clamping down on the significant exchanges, Binance, Binance.US, and Coinbase. The United States regulator alleged that Binance, the world’s largest crypto exchange by daily trading volume, and Coinbase broke the country’s law by operating as unregistered securities.
This lawsuit against these exchanges has elicited criticisms from the crypto community, with many tagging the SEC as being biased for giving traditional banking institutions an unfair advantage over decentralised finance (DeFi) institutions.
The clampdown of the SEC on Binance, Binance.US, and Coinbase has severely impacted the exchanges. They recorded a net loss of $4 billion at the beginning of June. At that time, there was a net outflow of $3.1 billion via the Ethereum network and $864 million worth of BTC. Therefore, as these exchanges continue to grapple with the lawsuit put forward by the SEC, many crypto enthusiasts are anticipating the outcome of the suit.
Technological Advancements And Innovations
Coinbase Layer 2 Network Base Sets For Mainnet Launch
Base, a new layer-2 protocol by Coinbase, is at the penultimate of its launch as it has one criterion to meet before going live on the mainnet. The Base team revealed that the Ethereum-secured network had undergone a 6-month rigorous security audit and has now completed four of the five conditions for its launch.
There was community awareness between May 27 and June 10, with a maximum reward of $100,000 to successful bounty hunters.
Base aims to be a low-cost, secure, and developer-friendly network for building decentralised applications.
Investor Sentiment And Market Outlook
The crypto market has had an erratic price change since the beginning of the year. The market is highly competitive as significant assets like Bitcoin and Ethereum rival the new entrants amid uncertainties.
However, investors are optimistic about the price of BTC increasing, following its adoption as the best tool to hedge against inflation. Also, there is a market sentiment towards Bitcoin’s critical historical resistance level at the psychological level of $32,000 and the mid-point rise to $36,425.
Experts Revealed Best Coins To Buy In Q2 2023
Major factors like regulatory laws and market capitalisation significantly affect cryptocurrencies’ value. Therefore, market sentiment is harping on investors’ stances on some crypto assets.
Researchers suggested that the Shanghai Upgrade would spell futuristic gains for Ethereum. As ETH is the most popular altcoin, there is optimism that its price will rally to almost $2K by the end of the year – its price is currently around the $1,800 mark.
Meanwhile, Polygon (MATIC) is moving upward as the asset leverages Polygon zkEVM to increase efficiency with lower costs. Therefore, experts believe that MATIC’s price will increase to $1.22 in 2023.
Regulatory Landscape And Legal Developments
Q2 of 2023 has had some level of development to regulation. It should be noted that the European Union (EU) has adopted MiCA (Markets in crypto assets), which is the long-awaited European regulatory framework on digital assets. This highlights investor and consumer protection and a concise framework for service providers and issuers.
In the United States, Congress and the House are legislating on bills that border crypto assets. For instance, the status of digital assets would be clarified if the Digital Asset Market Structure Draft and the Responsible Financial Innovation Act bills were passed.
Coinbase suffered excellent liquidity in altcoins following the SEC action against the exchange in June. But Bitcoin has had a remarkable performance thus far this year. This is owed to the summation of the SEC clampdown and BlackRock’s application for spot Bitcoin ETF that raised the bar for BTC.
Conclusion
Cryptocurrencies are already disrupting the global market with interesting turns like bullish and bearish runs, presales, new coins getting listed on exchanges, and blockchain technology coming to play to make the crypto space more viable than the traditional finance outlook.
Therefore, staying atop trendy cryptocurrency news is essential to inform you of the best-performing crypto assets for short and long-term opportunities.
