As July 2024 comes to a close, the cryptocurrency market has seen a flurry of activity, marked by significant price movements, regulatory developments, and technological advancements. Here’s a comprehensive look at the key events and trends that shaped the crypto landscape this month.

Market Highlights

Bitcoin Surges

July witnessed a remarkable surge in the prices of major cryptocurrencies. Bitcoin (BTC) broke through significant resistance levels, reaching a high of $69,000 towards the end of the month​

This rally was fuelled by pro-Bitcoin comments made by Trump at Bitcoin 2024, who promised he would end the “persecution” of the crypto industry if he wins the US presidential election.

Among other things, he said on Saturday he would make the US the world’s cryptocurrency leader and embrace a more pro-bitcoin stance than his rival, Kamala Harris. He also said he would sack Gary Gensler, chair of the US financial watchdog the Securities and Exchange Commission (SEC) and a noted skeptic about cryptocurrencies, if he won the election.

Major Developments

Regulatory news has been a significant driver of market sentiment, especially with the launch of spot Ethereum ETFs being a major talking point, with market analysts predicting that such developments could lead to increased institutional investment and market stability​.

In the U.S., political figures like Robert F. Kennedy proposed integrating Bitcoin holdings with national gold reserves, and New Jersey’s mayor announced plans to include Bitcoin ETFs in the Jersey City pension fund, signaling growing acceptance of cryptocurrencies in traditional finance​.

Token Unlocks

A major event in July was the unlocking of over $755 million worth of crypto assets as vesting periods for more than 40 projects concluded​​. This included significant unlocks from projects like AltLayer, Xai, and Arbitrum. These events typically lead to increased market liquidity and can impact token prices as early investors gain the ability to sell their holdings​.

Security Concerns: Hacks and Scams

High Profile Crypto Hack

July 2024 has been a challenging month for crypto security, with several high-profile hacks making headlines. One of the most significant incidents involved a breach of India’s largest crypto exchange, WazirX, resulting in the theft of $234.9 million from its multi-sig wallet. The hackers moved the funds to a new address and began converting various cryptocurrencies, including PEPE, GALA, and USDT, into Ethereum.

In response to the breach, WazirX halted both INR and crypto withdrawals, reassured users of fund security, and initiated an investigation into the incident while collaborating with law enforcement.

A New Type of Scam

There is a new type of scam involving fake transactions and multiple smart contracts targeting major centralized cryptocurrency exchanges. While only a single successful instance of this scam has been confirmed, further analysis of the smart contracts in question revealed that the perpetrators have initiated hundreds of these fake transactions, potentially defrauding exchanges of more than $3 million USD worth of TRX.

The scam begins with the perpetrator initiating a fraudulent TRX transfer to their deposit address on a centralized exchange. Through the use of multiple smart contracts, they will trick the exchange’s wallet infrastructure into validating the fraudulent transaction. This leads the exchange to credit the equivalent amount of cryptocurrency to the perpetrator’s account, which they promptly liquidated for cash.

Learn more here.

Technological and Market Trends

NFTs aren’t Doing Good

Technological advancements in the crypto space continue to push the boundaries of what’s possible. However, not all innovations have a lasting impact. The decline in NFT trading volumes despite earlier hype illustrates how market enthusiasm can wane without sustained innovation and real-world utility​​. Future technological breakthroughs need to focus on solving real problems and offering tangible benefits to maintain long-term interest and adoption.

Final thoughts

In conclusion, July 2024 has been a dynamic month for the cryptocurrency market, characterized by significant price movements, regulatory discussions, security challenges, and evolving market trends. As the market continues to mature, staying updated on these developments is crucial for both seasoned investors and newcomers alike.