Cryptocurrencies took a significant hit late on Wednesday and into Thursday, withBitcoindropping below $25,000, while Polygon’s MATIC and Cardano’s ADA saw 24-hour declines of up to 9% and 8% respectively. This decline comes on the heels of the Federal Reserve’s policy decision on Wednesday to suspend rate hikes for at least one meeting, yet signaling further monetary tightening before the end of the year. LMAX Digital’s morning note warned that short-term losses could extend for Bitcoin, but it should find support ahead of $22,000.
In other, seemingly unrelated news, the European Commission is expected to propose a draft law on June 28 that would ban paying interest on or surcharges for using a digital euro. Under the draft law, which CoinDesk has seen, the proposed central bank digital currency (CBDC) must be available for cash-style offline payments from the first day of issuance, and users should not be able to program it to limit onward use. The draft bill states that the digital euro would be available for both online and offline digital euro payment transactions, and the level of privacy for offline, face-to-face use should be comparable to withdrawing banknotes at an ATM.
Meanwhile, the Middle Eastern branch of OKX, the second-largest cryptocurrency exchange by trading volume, has received an MVP Preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA). OKX Middle East has already established an office in the Dubai World Trade Center and plans to expand its staff to 30, focusing on local hires and senior management. Once the Minimal Viable Product (MVP) license becomes fully operational, OKX Middle East will offer spot, derivatives, and fiat services, including USD and United Arab Emirates dirham (AED) deposits, withdrawals, and spot-pairs.
However, the Binance Smart Chain (BSC) is facing some challenges, as total value locked in the blockchain has declined to $3.29 billion, the lowest since March 2021. Investors appear to be withdrawing capital from BSC-based projects following the U.S. Securities and Exchange Commission’s crackdown on Binance. BSC’s fee revenue has reportedly declined 50% from a year ago and is down 30% from the daily average of the second quarter, based on data tracked by Matrixport.
These recent developments depict the inherent volatility and uncertainty that the crypto space often faces. The ongoing debates on CBDCs, regulatory actions against exchanges, and the influence of global economic events on the value of cryptocurrencies all indicate that the future of digital assets is anything but straightforward. The industry’s enthusiasts and skeptics alike are sure to keep a close eye on how these stories unfold.
Source: Coindesk
