This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin SV (BSV) experienced a significant surge last week, rising by 30% after Binance relisted perpetual futures for the token. This rally propelled the Bitcoin fork into positive territory for the year, a milestone it briefly achieved in July. In other news, the European Central Bank (ECB) announced a preparatory phase for a digital euro, indicating a growing interest in a form of digital currency. This comes as the market for stablecoins saw a significant difference in value, with fraud reaching $107 billion USD compared to only $16 million USD for Euro-stablecoins. It is important to note that central bank digital currencies (CBDCs) differ significantly from stablecoins.The crypto market also experienced some legal developments. The U.S. Securities and Exchange Commission (SEC) decided not to appeal the Grayscale decision and dropped its lawsuit against Ripple executives. However, the state of New York filed lawsuits against DCG and Gemini.Furthermore, Coinbase listed perpetual futures, and Binance regained access to the Euro. Last week highlighted the impact of rumors on the market. A tweet from the crypto news website Cointelegraph falsely claiming the approval of a Bitcoin spot ETF led to a 10% increase in BTC price, which later fell when the news was debunked. Despite this, BTC continued to rise throughout the week, surpassing $30,000 for the first time since mid-August.During this period of extreme volatility, liquidity decreased as prices moved into a less liquid range. Market makers were slow to replenish their order books to avoid being on the wrong side of price movements. Interestingly, liquidity recovered more quickly on some exchanges, such as Kraken, compared to Binance and Bybit.The impact of the rumor was most significant in the derivatives markets, where leverage can result in liquidations during volatility. Within one hour, contracts worth $600 million were liquidated on Binance and Bybit, leading to a 10% decrease in open interest.This event provided insights into the crypto markets. Firstly, the approval of a spot ETF would be welcomed by the markets. Secondly, Twitter still plays a significant role in spreading information that can influence market trends. Lastly, the crypto industry remains susceptible to fake news.Another noteworthy development is the sudden rise of the stablecoin FDUSD, which went from 0% market share to over 16%. This coincided with the significant decline of TUSD. The connection here is Binance, as TUSD’s market share increased dramatically after Binance selected it as the successor to BUSD and promoted a fee-free BTC-TUSD pair. This led to a substantial increase in TUSD’s market share, with most of the volume coming from this fee-free pair.Overall, last week’s events shed light on the state of the crypto markets, highlighting the importance of regulatory decisions, the influence of social media, and the vulnerability of the industry to misinformation.