A crypto project has suffered a loss of multi-million dollars due to a hack in the first few hours of July 3. However, this incident has not had any noticeable effect on the wider market.
On the other hand, popular crypto influencers are optimistic about the approval of a Bitcoin ETF in the upcoming months. Additionally, BlackRock has refiled its spot Bitcoin ETF filing and has now disclosed oinbase">Coinbase as its partner for sharing surveillance data.
Following a turbulent week for entities seeking to file ETF applications, the United States Securities and Exchange Commission (SEC) temporarily halted the processing of applications from several companies including Blackrock, Ark, Valkyrie, WisdomTree, Invesco, and others due to issues with their paperwork. This development prompted these companies and others to quickly refile their applications in response.
The Poly Network, which is a platform that enables blockchain interoperability, suffered a hack that targeted various blockchains, including Ethereum, BNB Chain, and others. The attack led to a loss of more than $5 million, and it is suspected that the hackers may have taken up to $10 million in total. The hackers were able to liquidate some of the stolen Ethereum, but their attempts to do the same with other cryptocurrencies were hindered by poor market liquidity, which may have prevented them from stealing up to $260 million.
Despite the Poly Network hack, cryptocurrency investors have remained optimistic, as reflected in the market performance on July 3. The overall market capitalization of cryptocurrencies has increased by more than 1.5%, reaching an intraday high of $1.17 trillion. Among the top-performing coins, Filecoin (FIL) stands out with a 20% rise, reaching $4.93, its highest price in a month. This indicates that there is continued bullish sentiment in the crypto market, despite the recent hacking incident.
The Graph (GRT) is another top-performing asset, with an intraday jump of 18%, reaching its highest price in a month at $0.139. The recent increase in Bitcoin ETF applications by BlackRock and other firms has contributed to a positive outlook for the crypto market. However, it is anticipated that most top cryptocurrencies could face downward pressure if the Federal Reserve tightens interest rates by an additional 50 basis points by the end of 2023.
On July 3, multiple countries announced updates on their cryptocurrency regulations. In an effort to enhance its crypto regulations, Hong Kong has established a new Web3 task force responsible for supervising and promoting the sustainable development of cryptocurrencies in the region. Prior to this, the Hong Kong Monetary Authority (HKMA) had exerted pressure on banking institutions like Standard Chartered, HSBC, and Bank of China to accept crypto exchanges as their clients. These measures are anticipated to contribute to the improvement of cryptocurrency regulations in Hong Kong.
Additionally, the United Kingdom is making significant efforts to provide clarity on the definition of cryptocurrencies within its legal framework. With regulators granted authority to supervise the crypto sector, the U.K. Law Commission recently proposed the establishment of a distinct category of personal properties specifically for integrating cryptocurrencies. This proposal aims to enable the accurate identification and authentication of various digital assets, encompassing cryptocurrencies and digitized instruments.
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