LianGuai Morning News | Bitcoin futures open interest reaches highest level since 2023

LianGuai Morning News Bitcoin futures open interest at record high since 2023

Headlines

▌Bitcoin futures open interest reaches 2023 high

LianGuai reports that Coinglass data shows that the open interest in Bitcoin futures has reached a 2023 high. Trading activity in this market surged to around $14.5 billion on August 8, close to the level observed in May 2022. However, an increase in the number of active contracts does not necessarily mean an increase in trading activity in the futures market, as the trading volume related to Bitcoin futures has been declining over the past seven months. The latest data shows that BTC futures trading volume has dropped to its lowest level since December 2022, averaging less than $7 billion per day. This indicates that traders are either completely avoiding risk and are unwilling to take further action at current price levels, or they have shifted their focus to other markets with higher volatility.

▌The Hong Kong Securities and Futures Commission: Claims of license applications by certain platforms are untrue, OSL and Hashkey are the only licensed institutions currently

LianGuai reports that the Hong Kong Securities and Futures Commission has issued a document titled “Recognizing Licensed Virtual Asset Trading Platforms,” stating that it has recently noticed that certain unlicensed virtual asset trading platforms claim to have submitted license applications to the Commission. These claims are not only false but also misleading the public into thinking that these platforms comply with the Commission’s regulations. The Commission warns these platforms that such improper behavior may lead to serious legal and regulatory consequences. Any false statements will be taken into consideration when deciding whether or not to grant a license. At the same time, investors must be aware that most of the virtual asset trading platforms accessible to the public are currently unregulated, and they should be cautious of the risks of buying and selling virtual assets on unregulated platforms. The public can refer to the Commission’s list of licensed virtual asset trading platforms to check the licensing status of these platforms. According to this list, the currently licensed platforms are OSL Exchange and HashKey Exchange.

• The Bitcoin greed and fear index of Matrixport indicates that BTC will rise in the future.
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• Opinion Bitcoin ETF may push Bitcoin to new historical highs.

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Market Updates

As of the time of writing, according to coinmarketcap data:

The recent trading price of BTC is $29,419.7, with a daily change of -0.13%;

The recent trading price of ETH is $1,847.89, with a daily change of -0.20%;

The recent trading price of BNB is $240, with a daily change of -0.58%;

The recent trading price of XRP is $0.63281, with a daily change of -0.01%;

The recent trading price of DOGE is $0.075705, with a daily change of +0.06%;

The recent trading price of ADA is $0.2936, with a daily change of -0.97%;

The recent trading price of SOL is $24.578, with a daily change of -0.11%.

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Policies

▌California Commission on Campaign Finance Disclosure requires compliance with applicable restrictions for cryptocurrency donations

LianGuai reports that the California Fair Political Practices Commission has updated its campaign disclosure manual, which includes detailed rules for reporting cryptocurrency donations. These updates include campaign donation limits, limited liability company (LLC) disclosure requirements, agency payment reports, cryptocurrency donations, excessive donations, advertising disclosure requirements, and other non-substantive technical changes. According to the guidelines, political committees can solicit cryptocurrency as non-monetary donations, but they must meet specific requirements. Cryptocurrency donations must comply with applicable restrictions and may not accept donations from foreign principals, lobbyists, or anonymous sources. The committee is also prohibited from directly receiving cryptocurrency donations in peer-to-peer transactions. Cryptocurrency donations can be received through payment processors selected as vendors representing the committee.

LianGuai reports that the U.S. Securities and Exchange Commission (SEC) is seeking public opinion on BZX’s application to launch the first bitcoin spot ETF on a U.S.-regulated exchange. First, the SEC asks whether the proposed ETF is protected from “fraudulent and manipulative acts and practices” and whether the bitcoin market is inherently susceptible to manipulation. This question has been a core reason for the agency’s hesitation in approving a bitcoin spot ETF to date. The second public question is whether commentators agree with the exchange’s view that the CME, which conducts bitcoin futures trading, represents a regulated market of comparable size to the spot bitcoin market. The SEC particularly wants to know if those attempting to manipulate the bitcoin market would necessarily have to trade on the CME. The SEC’s final question concerns Coinbase: whether commentators agree with the exchange’s assertion that such agreements with Coinbase would help detect, investigate, and prevent fraud and manipulation of commodity-based trust securities.

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Blockchain Applications

▌Ethereum Foundation Engineer: Holesky testnet expected to launch on September 15th

On August 11th, Ethereum Foundation engineer LianGuairithosh Jayathi stated that the plan is to launch the Holešovice (Holesky) testnet around September 15th, and two coordination calls have already taken place. The testnet aims to provide a platform for client teams to test larger-scale test clients than the mainnet and allow home stakers to test their setups without risk.

▌China’s Blockchain Development Report: Blockchain Technology is an Important Guarantee for Digital Cultural Development

LianGuai reports that the Beijing Blockchain Technology Application Association and the Social Science Literature Publishing House jointly released the “Blockchain Blue Book: China’s Blockchain Development Report (2023)” in Beijing. The blue book believes that for various legal issues in the current digital cultural industry (such as new forms of piracy making piracy more decentralized and covert, making it harder to combat; network piracy being more fragmented, making it harder to determine responsibility, etc.), blockchain technology may provide a lower cost and more efficient solution. Using blockchain technology, works can be copyrighted, proving the existence, authenticity, and uniqueness of a piece of text, video, or audio through timestamps and hash algorithms. Once copyrighted on the blockchain, subsequent transactions of the work will be recorded in real time, and the entire lifecycle of the cultural and creative industry can be traced, providing strong technical security and high credibility evidence for IP rights proof and judicial evidence.

▌Canadian Police Tenders for Development of Dedicated Repository for Storing Confiscated Cryptocurrencies and NFTs

LianGuai reports that the Royal Canadian Mounted Police (RCMP) is seeking a digital asset solution to facilitate the confiscation and storage of cryptocurrencies and non-fungible tokens (NFTs). The tender started accepting applications on August 10. The tender notice states, “The development of a centralized repository solution will allow law enforcement agencies to seize these assets in a user-friendly manner while providing essential security to prevent theft during storage.”

▌Visa Tests Method to Pay Gas Fees on the Blockchain with Credit or Debit Cards in Fiat Currency

On August 11, payment giant Visa announced that it has completed testing for users to directly pay gas fees on the blockchain with credit or debit cards in fiat currency. The experiment was conducted on the Ethereum Goerli testnet, using a payment main contract to represent users in paying gas fees. This means that users can send blockchain transactions without worrying about maintaining an Ethereum balance. Visa believes that this contract can make it easier for a wider range of users to conduct transactions.

▌115th Ethereum ACDC Meeting: Devnet 8 to be Launched Early Next Week

On August 11, Christine Kim, Vice President of Galaxy Research, summarized the 115th Ethereum Core Developers’ Consensus Meeting (ACDC), stating that Devnet 8 will be launched early next week. This will be the first dedicated testnet that includes all completed EIPs of the Cancun/Deneb upgrade. In addition, the Holesky testnet will be launched at the end of September with 1.4 million validators, twice the size of the mainnet. Developers reiterated the decision to rewrite EIP 4788 as a regular contract.

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Cryptocurrencies

▌Sun Yuchen Pledges Additional 50 Million stETH to Mint 500 Million DAI and Deposits them into DSR, Accumulating a Deposit Ratio of 15%

LianGuai reports that according to on-chain analyst Yu Jin monitoring, Sun Yuchen continued to pledge 50 million DAI by minting stETH and depositing them into DSR (Dai Savings Rate) through two addresses 8 hours ago. Currently, Sun Yuchen has pledged a total of 231,116 stETH (approximately $428 million) and minted 175.8 million DAI, which has been deposited into DSR. The data shows that the total TVL of DSR is currently about $1.17 billion, and Sun Yuchen accounts for 15% of it.

▌Possible Glitch in XRP Price on Gemini, XRP Briefly Reaches $50

LianGuai reports that several members of the cryptocurrency community on Twitter posted screenshots showing a possible glitch in the XRP price on Gemini, with XRP’s price on Gemini rising above $1 multiple times, and even briefly soaring to $50. However, according to CoinGecko’s data, the current market price of XRP is $0.63. Meanwhile, as of 1:25 AM UTC on August 11, Gemini announced that it has conducted comprehensive maintenance on its platform, and Gemini also noted that it disabled cryptocurrency deposits and withdrawals at 10:45 AM UTC on August 10. LianGuai previously reported that Gemini announced on August 10 that it has once again allowed XRP trading on its platform.

▌Analyst: The United States may account for 99.5% of global trading volume of BTC ETF

LianGuai reported that according to the ETF analyst at Bloomberg, the United States may account for 99.5% of the global trading volume of cryptocurrency-related exchange-traded funds (ETFs), but this is conditional on the approval of physically-backed Bitcoin ETFs. Eric Balchunas, senior ETF analyst at Bloomberg, revealed in a Twitter post on August 10th that currently, North America accounts for 97.7% of all cryptocurrency ETF trading volume. This percentage may reach 99.5% when physically-backed ETFs are launched in the United States. Currently, there is a long list of Bitcoin ETF applications awaiting approval from the U.S. Securities and Exchange Commission. The regulatory agency plans to make a decision on the joint ARKB fund of Ark Invest and 21 Shares by August 13th, but it is generally expected to be delayed.

▌Scopescan: Worldcoin TFH team and investor addresses distribute 8 new addresses with 900 million WLD

LianGuai reported that according to Scopescan data monitoring, in the past 30 minutes, the 0x0d4c addresses starting with the Worldcoin TFH team and investors have distributed 900 million WLD tokens (worth $152 million) to 8 new addresses. In the past 5 days, the 0x0d4c addresses have transferred a total of $490 million worth of WLD tokens to 26 investor addresses.

▌dYdX: Still refining some features of Public Testnet 2, to be launched on August 14th

LianGuai reported that dYdX stated in a tweet that the team is still refining some features of Public Testnet 2, which is scheduled to be launched on Monday, August 14th.

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Important Economic Developments

▌The U.S. July PPI records a year-on-year growth rate of 0.8%, ending 12 consecutive months of decline

On August 11th, it was reported that the U.S. July Producer Price Index (PPI) recorded a year-on-year growth rate of 0.80%, ending 12 consecutive months of decline. The expectation was 0.70% and the previous value was 0.10%.

▌The probability of the Fed maintaining interest rates unchanged in September is 88.5%

According to CME’s “FedWatch”, the probability of the Fed maintaining interest rates unchanged at 5.25%-5.50% in September is 88.5%, while the probability of raising interest rates by 25 basis points to the 5.50%-5.75% range is 11.5%. The probability of maintaining interest rates unchanged until November is 63.0%, the probability of cumulative interest rate hikes of 25 basis points is 33.7%, and the probability of cumulative interest rate hikes of 50 basis points is 3.3% (GoldenTen Data APP).

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LianGuai Encyclopedia

▌AES – Advanced Encryption Standard

The Advanced Encryption Standard (AES), also known as the Rijndael encryption algorithm, is a block cipher standard adopted by the U.S. federal government in cryptography.

Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational reference only and should not be considered as actual investment advice. Please establish the correct investment concept and be sure to raise risk awareness.

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