The post VanEck’s August 2024 Crypto Recap: Market Volatility and Regulatory Challenges appeared on BitcoinEthereumNews.com.

Tony Kim Sep 06, 2024 04:20 VanEck’s August 2024 Crypto Recap highlights significant declines in Bitcoin, Ethereum, and Solana amid rising market volatility and regulatory challenges. According to VanEck, most crypto assets experienced significant declines in August 2024 amid rising market volatility driven by macroeconomic factors such as the yen carry trade implosion. Bitcoin (BTC) fell by 11%, Ethereum (ETH) by 24%, and Solana (SOL) by 21%, contrasting with the S&P 500’s 2% gain and Nasdaq’s 1% increase. Market Performance The month of August saw a sharp downturn in crypto assets as fundamental usage and financial statistics underperformed against a backdrop of rising volatility. The market capitalization of all Smart Contract Platforms (SCP) ended August 12% lower than July. The yen carry trade implosion was a significant factor, causing a risk-off environment that led to Bitcoin’s price dropping as low as $49,000 and Ethereum crashing to $2,100 on August 5. Although Bitcoin has recovered some value, sitting around $58,000 at the time of writing, Ethereum remains around $2,500. This volatility also increased Bitcoin’s 30-day volatility by 48% and Ethereum’s by 52%, with Bitcoin’s 90-day correlation with the Nasdaq rising to an 18-month high of 38%. Blockchain Usage and Regulatory Developments Blockchain usage deteriorated in August, with daily active users down 10%, fees generated falling 12%, and DEX volumes decreasing by 4% compared to July. Additionally, the German and US governments transferred 62,000 Bitcoin to exchanges, presumably for sale, while Mt. Gox and Gemini bankruptcy distributions totaled another 124,000 Bitcoin. This resulted in approximately $11 billion in non-repeatable sales. Regulatory actions also contributed to the market’s downturn. The SEC issued a Wells Notice to OpenSea, one of the largest NFT exchanges, claiming the company is an unregistered broker. This regulatory pressure may continue unless there are significant political changes in the…

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Filed under: News - @ September 6, 2024 4:23 am