I. Regulatory Aspects
The United States, as an important market for global cryptocurrency trading (accounting for over 40% of global trading volume), has always attracted attention for its regulatory trends. On July 9, local time, the U.S. Senate Banking Committee engaged in intense debates regarding the regulation of digital assets. Republican lawmakers advocated for a 'soft' regulatory approach, holding the view that 'excessive restrictions will stifle innovation'; while Democratic lawmakers emphasized potential loopholes and conflicts of interest, calling for strengthened investor protection. This hearing is of great significance for promoting legislative progress in the cryptocurrency market structure, aiming to achieve substantial progress before the committee's deadline on September 30. Additionally, the House of Representatives also plans to review its own digital asset proposals next week, which may cover exchange licensing systems and token classification standards. Once relevant regulations are determined, the market structure in the cryptocurrency space will undergo significant changes, and the influx of institutional capital may fluctuate greatly due to regulatory attitudes. A soft regulatory approach may attract a large amount of institutional capital; conversely, overly strict regulations may lead to some capital outflows.
II. Technical Application Aspects
The application of blockchain technology in the financial sector is continually deepening, especially in trade financing. On July 10, reports emerged that major global banks and governments are accelerating the adoption of blockchain to optimize trade financing, targeting the global trade market exceeding $30 trillion. For example, XDC Network has become a core platform for promoting digital documents, tokenized invoices, and letters of credit due to its programmability, hybrid public-private architecture, and compatibility with the ISO20022 standard. Currently, the project has initiated pilots in Asia, Latin America, and Africa, achieving significant results, reducing loan disbursement time from two weeks to three hours, with efficiency improved by over 90%. This progress signifies that the cryptocurrency space is gradually shifting from a purely 'speculation-driven' model to a 'utility-driven' one. Traditional trade financing processes are cumbersome, reliant on paper documents, costly, and prone to fraud, whereas blockchain's smart contracts enable automated operations, greatly reducing the risk of fraud. It is predicted that the global trade financing blockchain application market is expected to reach $10 billion by 2024, with a compound annual growth rate of 25%.
III. Market Investment Aspects
(1) Actions of Stablecoin Giant Tether
Tether, a giant in the stablecoin field, has recently made significant moves. It has stored about 80 tons of gold in its vault located in Switzerland, valued at approximately $8 billion, making it 'one of the largest holders of gold globally, excluding banks and countries,' comparable to UBS Group. The Tether-issued USDT is pegged to the U.S. dollar at nearly 1:1, through the issuance of tokens in exchange for dollars and investing in gold and other assets for profit. Currently, the circulation volume of USDT is about $159 billion. Tether CEO Paolo Ardoino stated that the company believes gold is 'safer' than fiat currencies (including the dollar), especially in light of concerns about the U.S. debt levels. However, given the skyrocketing popularity of stablecoins, Tether's increasing allocation of gold may face regulatory challenges. Frameworks such as the U.S. (Genius Bill) and the EU's (Regulation on Markets in Crypto-assets) restrict stablecoin reserves to cash or cash-equivalent instruments, excluding commodities like gold. If these regulations come into effect, Tether will need to adjust its asset holdings to remain compliant.
(2) Trump Media and Technology Group's Crypto ETF Plan
Trump Media and Technology Group (DJT) has been active in the cryptocurrency sector. This week, the group plans to launch its third exchange-traded fund (ETF) — the 'Truth Social Crypto Blue Chip ETF.' Documents show that the fund will consist of 70% Bitcoin, 15% Ethereum, 8% Solana, 5% Cronos, and 2% XRP, and plans to trade on the ETF platform Arca of the New York Stock Exchange. Previously, the Trump administration created a regulatory environment more favorable to the development of cryptocurrency-related companies, with the U.S. Securities and Exchange Commission (SEC) abandoning or suspending several enforcement actions against cryptocurrency firms and issuing new guidelines for cryptocurrency ETF issuers. Based on this, Trump Media announced as early as March this year its cooperation with cryptocurrency exchange platform Crypto to offer ETFs and related products; in May, it stated plans to raise $2.5 billion to purchase Bitcoin. Last month, the group submitted two cryptocurrency ETF applications to the SEC, one tracking Bitcoin prices and another investing 75% of its assets in Bitcoin, with the remainder invested in Ethereum.
(3) Musk Family and Musk Coin
The Musk family has also stirred waves in the cryptocurrency space. Errol Musk, Elon Musk's father, is leading the MuskIt token project, aiming to raise $150 to $200 million. As a result, Musk Coin (MUSK) soared 300% in a single day. From a technical perspective, on-chain data shows that MUSK Coin's trading volume exceeded 980 million yuan within 24 hours, with a turnover rate surging to 575%. Musk Coin's circulating market capitalization has entered the top 10 of meme coins. However, the project also faces controversies regarding regulatory dynamics and project authenticity. Previously, Elon Musk's statements on Dogecoin have repeatedly triggered significant price fluctuations for Dogecoin; his family's influence in the cryptocurrency space is enormous, and their actions often provoke drastic changes in market sentiment.
(4) Justin Sun and TRUMP Coin
Tron founder Justin Sun announced on July 9 that he would purchase $100 million worth of TRUMP coins, stating that TRUMP and TRON will be the future of cryptocurrency. Previously, Tron DAO announced on July 7 that TRUMP meme coins would expand from the Solana chain to the Tron network, leveraging Tron's large user base and faster transaction speeds. As of the afternoon of July 9, Eastern Time, the price of TRUMP coins was reported at $8.89, rising 2.7% on the day. Justin Sun is the largest individual holder of TRUMP coins, holding tokens worth nearly $19 million, and he attended a VIP dinner hosted by Trump earlier this year. Meme coins, although often criticized for lacking inherent value, can rapidly enhance liquidity through community spread and celebrity endorsements. Data shows that the market capitalization of meme coins surpassed $50 billion in 2024, accounting for 15% of total cryptocurrency trading volume.
IV. Market Performance Aspects
Recently, Bitcoin prices have shown strong momentum, breaking away from two months of sluggishness. On July 11, U.S. President Donald Trump launched a new round of tariff attacks, causing fluctuations in the U.S. stock market, while Bitcoin experienced a surge, first breaking the $118,000 mark, with some options traders even eyeing $150,000. The cryptocurrency market saw widespread gains, with numerous tokens like Ethereum and Cardano rising sharply. In terms of capital flow, ETF funds have flowed back in, with the U.S. Bitcoin and Ethereum ETFs experiencing the second-largest single-day inflow. Over the past two months, declining market volatility and continuous favorable news from U.S. regulators have laid the foundation for this rise. Over the course of 24 hours, Bitcoin short positions worth over one billion dollars were liquidated.
