The SEC and CFTC have issued a joint statement clarifying that registered exchanges are allowed to facilitate trading of certain spot crypto asset products, signaling a move towards supporting innovation and competition in the digital asset markets in the US.
The U.S. CFTC is planning to unify spot and futures crypto trading under a single regulatory framework through the 'Crypto Sprint' program, aiming to streamline regulation and clarify the roles of different regulators in the sector, in collaboration with the SEC.
Ethereum's recent rally is primarily driven by derivatives trading and arbitrage strategies, with minimal actual buying in the spot market, raising concerns about its sustainability and vulnerability to sudden reversals without increased genuine demand.
Glassnode analysts report that the Bitcoin market has entered a "euphoric phase" with spot trade volume reaching levels seen during the 2020 to 2021 bull market, driven by both spot trade volume and exchange deposits and withdrawals. The market is still in its early stages of euphoria, with profit taking on the rise. The surge in trading volumes followed the approval of spot bitcoin exchange-traded funds (ETFs) in January, with daily trading volumes peaking at $14.1 billion in March. The Fear and Greed index currently sits at a reading of 78, indicating "extreme greed" in the market.
The price of Bitcoin surged past $35,000 for the first time since May 2022, gaining over 10% in the past 24 hours. The sudden increase in price coincided with growing excitement around upcoming spot exchange-traded fund (ETF) approvals and a significant rise in trading volumes. BlackRock's proposed spot Bitcoin ETF also received attention, with indications that the investment giant may soon begin the process of launching its ETF product. Bitcoin's surge in price was accompanied by a surge in spot trading volume, reaching over $35 billion in the past 24 hours. Other cryptocurrencies, including Ethereum, Solana, Dogecoin, and Cardano, also experienced price gains.
Binance, the world's largest crypto exchange, temporarily suspended all spot trading, deposits, and withdrawals due to a bug encountered on a trailing stop order. The exchange expects to recover within two hours. Binance commands over 60% of all crypto spot volume and has increased its market share of Bitcoin spot volume to over 90% in recent quarters.