It’s Amazon Prime Day on Wednesday and bitcoin‘s already gone on sale, down almost 4% since this time yesterday. The bitcoin price has followed stock markets lower this morning, dropping along with markets in Asia, Europe and U.S. futures.
Ethereum and its biggest rivals BNB BNB , cardano and solana are all down by around 3%. The meme-based dogecoin is leading the top ten lower after Tesla TSLA billionaire and dogecoin devotee Elon Musk on Friday revealed he was walking away from his $44 billion deal to buy Twitter—a deal that some had speculated could lead to dogecoin being integrated into the platform.
Countdown to October: The Financial Stability Board (FSB) has said it will propose “robust” global rules for cryptocurrencies in October after the latest crypto crash highlighted the need to regulate the “speculative” market. The FSB warned crypto is not a “regulation free space” and must comply with relevant existing rules. “The FSB will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets,” the FSB said in a statement first reported by Reuters.
Containing contagion: The move is partially a response to the collapse of the Terra blockchain ecosystem and shockwaves eminating from it that are still being felt by the likes of crypto companies Celsius and Voyager. “The failure of a market player, in addition to imposing potentially large losses on investors and threatening market confidence arising from crystallization of conduct risks, can also quickly transmit risks to other parts of the crypto-asset ecosystem,” the FSB wrote.
Why it matters: While the FSB has no lawmaking powers its members commit to applying its regulatory principles in their own jurisdictions.
Zoom out: Earlier this month, the European Union, agreed on comprehensive new rules for the crypto market and last week the U.S. Treasury Department announced a new framework for international engagement on digital assets—as required by president Joe Biden’s March executive order. Politico has a useful re-cap.
Now what? G20 finance ministers and central bankers will meet in Bali later this week.
📉 Professional investors are expecting the crypto crash to get worse before it gets better, according to almost 1,000 people that responded to the latest MLIV Pulse survey, first reported by Bloomberg.
➗ More than half (60%) think the bitcoin price will hit $10,000 before $30,000, a more than 50% drop from its current price of just over $20,000. Meanwhile, crypto continues to divide opinion, with almost 30% of pro investors predicting crypto is the “future” of finance but nearly 20% branding cryptocurrencies “all garbage.”
🪃 However, a survey out last week of roughly 4,400 U.S. adults conducted by intelligence company Morning Consult found crypto owners are still feeling upbeat despite the recent downturn and expect bitcoin to bounce back to around $38,000 before the end of 2022. Read the full story on Forbes.
👀 Look out for these cryptocurrency and crypto-adjacent events this week.
🏛️ Bank of England (BoE) governor and outspoken crypto critic Andrew Bailey is speaking today and tomorrow. Earlier today, BoE deputy governor for financial stability Jon Cunliffe, called for similar rules and regulations that apply to the traditional financial system to be extended to crypto markets. Cointelegraph has more.
🎈 U.S. inflation data tops the economic calendar this week with investors braced for the June consumer price index (CPI) print on Wednesday which is expected to show headline inflation, including food and energy, rising above May’s 8.6% level. Finance legend Mohamed El-Erian sees the reading getting “very close to 9%.”
🏙 Toward the end of the week, Wall Street giants including JPMorgan Chase JPM , Morgan Stanle MS y, Wells Fargo WFC and Citigroup C are all reporting their second-quarter results as earnings season gets underway.