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Est. read time: 4 minutes

Experts are signaling a market low after Bitcoin miners face financial pressure…

Let’s digest: 

1. Bitcoin Miners Face Pressure Similar to Post-FTX Market Low

2. U.S. Court Advances DraftKings NFT Class Action

3. Circle Secures First MiCA License for Stablecoin Issuance in Europe

📈 MARKETS

NFT Market Flash

📰 TODAY’S TOP STORY

Bitcoin Miners Face Pressures Similar to Post-FTX Market Low

Bitcoin miners are experiencing significant financial pressures, hinting at a potential market bottom similar to the aftermath of the FTX collapse in late 2022, according to analysis from CryptoQuant.

As daily mining revenues plummet and the overall hashrate decreases, indicators show a parallel with previous market lows, sparking discussions about a nearing bottom for Bitcoin prices.

• Since the Bitcoin halving earlier this year, daily miner revenue has drastically fallen from $79 million to $29 million, emphasizing the financial strain on miners.

• This reduction in earnings is primarily due to the halving event itself, which reduced the block reward, compounded by a drop in transaction fees which now represent a mere 3.2% of total miner revenue.

• The hashrate, a measure of the computational power per second used for mining, has also declined by 7.7%, indicating that less efficient miners have ceased operations.

This scenario mirrors the conditions seen during the FTX implosion, when miner capitulation (where miners sell their holdings to cover costs) marked a significant market trough.

Bitcoin's current price of around $60,300, after a recent 3% drop, is hovering near what has been a critical support level since April.

Despite recent challenges, Bitcoin has shown resilience at this price point, bouncing back toward $70,000 several times over recent months.

 🖼️ NFTs

U.S. Court Advances DraftKings NFT Class Action

A U.S. District Judge in Massachusetts has denied DraftKings' motion to dismiss a class action lawsuit that challenges the classification of its NFTs as securities.

This decision could set a significant precedent in the ongoing debate over NFTs and securities law.

• The lawsuit claims that DraftKings' sports-themed NFTs should be treated as investment contracts under the Howey test, a legal standard used to determine if something is a security.

• The court found plausible claims that these NFTs involve an investment of money in a common enterprise and come with a reasonable expectation of profits from the efforts of DraftKings.

This ruling pivots on the assertion that the value of DraftKings' NFTs is closely tied to the performance and popularity of its own marketplace on Polygon… A dependency that could influence their classification as securities.

This case follows a similar lawsuit against Dapper Labs, which recently settled for $4 million over the sale of its NFTs.

Unlike DraftKings, Dapper Labs operates on its proprietary Flow blockchain, which the court noted could heighten securities law risks due to the dependency on Dapper’s managerial efforts.

🟠 Crypto

Circle Secures First License for Stablecoin Issuance in Europe

Circle, a prominent player in the digital finance sector, has officially become the first global stablecoin issuer to comply with Europe's stringent Markets in Crypto Assets (MiCA) regulation, set to take effect from July 1.

• Announced by CEO Jeremy Allaire during a press conference in Paris, Circle has obtained the necessary licensing to issue its stablecoins, USDC and EURC.

• This milestone follows Circle's strategic moves to align with Europe's regulatory demands, including obtaining a digital asset regulatory license in France last December.

• With this license, Circle is poised to launch its MiCA-compliant stablecoins in Europe, operating under its French entity.

USDC holds the position as the second-largest USD-pegged stablecoin, capturing 20% of the global stablecoin supply as of June 28.

The implementation of MiCA aims to standardize crypto regulation across European Union member states, enhancing the safety and stability of the market.

MiCA, approved by the European Parliament in April 2023, introduces rigorous requirements for stablecoin issuers. While the full spectrum of regulations will roll out gradually by year's end, certain critical provisions impacting stablecoins take effect starting June 30.

Non-fungible News

• Gaming: Telegram Made it Easier to Farm Crypto Games

• NFTs: NFT Sales Are Down 44% while Logan Paul Sues Coffeezilla

• Crypto: How ETFs Are Reshaping the Crypto Market

💡 INSIGHT

Blast Market Cap Surpasses Blur

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