Bitcoin opens the week with a slight drop and reduces market euphoria

Bitcoin fell slightly on Monday after a significant 6% increase on Friday, driven by a speech by Federal Reserve Chairman Jerome Powell. Powell indicated that interest rates in the United States will begin to be reduced as early as next month.

This change is viewed with optimism by the equity market, since lower interest rates reduce the attractiveness of US Treasury bonds, considered the safest investments in the world. As a result, greater liquidity is provided to investors to allocate resources to more volatile options, such as cryptocurrencies.

As for spot Bitcoin exchange-traded funds (ETFs) on US exchanges, Friday saw a significant net inflow of capital totaling 252 million USD.

BlackRock-managed IBIT attracted 86.8 million USD, while Fidelity’s FBTC received 64 million USD. On the other hand, Ether ETFs faced a less favorable scenario, with a negative balance of 5.7 million USD. Of these, Grayscale’s ETHE stands out, which faced sales that exceeded purchases by 9.8 million USD.

Telegram creator’s arrest and impact on the platform’s crypto

Yesterday, Monday, the crypto market received news of the arrest of Pavel Durov, founder of the messaging app Telegram, in France. Durov was detained on charges of failing to take effective measures to prevent the use of the app for criminal activities.

In its defense, Telegram stated in a statement that it strictly follows European Union laws and that its content moderation practices are aligned with common industry standards.

Additionally, Telegram is linked to the crypto universe through The Open Network (TON), a blockchain created in 2017 by the app’s own developers.

This network is integrated with Telegram, making it easier for users to transfer a cryptocurrency called toncoin. Currently, the value of toncoin has fallen by 1.2%, trading at $5.57, with a cumulative decline of 17.8% over the past seven days.

On the other hand, André Franco, head of analysis at Mercado Bitcoin (MB), highlights Russia’s plans to open two cryptocurrency exchanges, located in Moscow and St. Petersburg. There is also the possibility of creating a stablecoin linked to the currencies of the BRIC countries.

In July, Russia legalized the use of cryptocurrencies for international trade, highlighting the apolitical nature of the crypto market, as noted by Franco. According to him, if the system were politicized, Russia would face significant barriers to such initiatives.

Bitcoin and other cryptocurrencies movements

Bitcoin was down slightly by 0.6% in the last 24 hours, trading at 63,754 USD. On the other hand, Ether, the digital currency of the Ethereum network, was up 1.3%, reaching 2,729 USD, according to information from CoinGecko.

The global market value of all cryptocurrencies reached an impressive $2.34 trillion. Among the altcoins, there were several movements. Solana (SOL) experienced an increase of 0.7%, selling at 160.12 USD. Meanwhile, BNB, the Binance Smart Chain token, faced a drop of 2.9%, trading at 561.24 USD, and Avalanche (AVAX) fell 1.2%, reaching 26.64 USD.

• Crypto exchanges with the lowest fees 2024