Crypto market continues to see Bitcoin stagnating below the $26,000 mark since September 1. With a negligible 0.04% decrease in the market index, investors are holding back, waiting for further developments in the cryptocurrency market and the wider economy before making any significant moves. Yuya Hasegawa, a crypto market analyst at Japanese exchange Bitbank, suggests that most of the speculative money has already left the crypto space.
Ether Expected to Outperform Bitcoin in September and October
Crypto analytics firm K33 predicts that Ether will outperform Bitcoin in September and October. Vetle Lunde, a senior analyst at the firm, believes that investors can ride the momentum that will drive ETH as the deadline approaches. The high chances of the first US ether ETF being approved in mid-October contribute to this belief. Lunde points out that September is a historically difficult month for BTC, with the cryptocurrency recording negative returns in that month every year since 2016. The odds are stacked in favor of ETH, Lunde said, citing the 60% gain that Bitcoin made in the three weeks before its first US futures-based ETF winning approval in 2021.
SOMA Finance to Sell Tokens with Financial Interest
In an effort to address criticism that crypto tokens do not represent a financial claim on the equity or debt of the issuer, SOMA Finance, a joint venture between decentralized autonomous organization (DAO) MANTRA and FINRA-registered broker dealer Tritaurian Capital, plans to sell up to $5 million in tokens. These tokens will grant holders the right to a dividend on profits. The SOMA tokens will actually represent a financial interest, given the token would be a non-cumulative, participating preferred stock of SOMA.finance. This innovative approach means the first legally issued digital security could be available to retail investors later this month.
Binance Remains Dominant Despite Regulatory Risks
Despite lingering regulatory risks, Binance remains the dominant exchange in the crypto market. Binance’s bitcoin-tether (BTC/USDT) pair accounts for 86% of the global BTC spot market trading volume this year, according to data tracked by FRNT Financial. This data highlights why Binance is often considered too big to fail.
Investors Waiting for Developments in the Crypto Market and Wider Economy
The current stagnation in the crypto market, especially with Bitcoin’s performance, has led to investors adopting a wait-and-see approach. They are closely monitoring developments in the cryptocurrency market and the wider economy before making any significant moves. As the market continues to evolve, investors are keeping an eye on factors such as regulatory changes, technological advancements, and market trends that could potentially impact their investments.
Conclusion
In conclusion, the crypto market is currently experiencing a period of stagnation, with Bitcoin remaining below the $26,000 mark since September 1. Investors are waiting for further developments before making any significant moves. Ether is expected to outperform Bitcoin in the coming months, according to crypto analytics firm K33. SOMA Finance is addressing the criticism of crypto tokens not representing a financial claim by offering tokens with financial interest. Meanwhile, Binance remains the dominant exchange in the market despite regulatory risks. As the market continues to evolve, investors will be closely monitoring the situation and making decisions accordingly.
