ProShares GENIUS ETF's $17B debut boosts case for tokenized money market funds

The cryptocurrency market is experiencing a period of heightened volatility, with Bitcoin's rebound faltering as the software and private equity sectors continue to decline. Meanwhile, a major US Bitcoin miner has sold its entire stash, adding to the uncertainty.

According to a report by CoinDesk, Bitcoin's price slipped back to $65,400 during US trading on Monday, after a modest overnight rebound failed to hold. This decline is largely attributed to the downturn in the software sector, which has been closely correlated with crypto in recent times. The sector's decline has been so pronounced that Bitcoin is now acting like a "high-beta risk play" rather than the "digital gold" it was once touted to be, according to a strategist at LMAX.

In other news, ProShares' GENIUS ETF has made a historic debut, with a $17 billion launch that is being seen as a boost to the case for tokenized money market funds. This development is significant, as it highlights the growing trend of traditional cash funds adapting to compete in a stablecoin-driven landscape.

However, not all stablecoins are faring well. World Liberty's USD1 stablecoin briefly slipped below its dollar peg, while its native token, WLFI, fell 7%. The company attributed this decline to a "coordinated attack".

In addition, XRP's price chart and whale activity are warning of a potential drop below $1. According to a report by CoinTelegraph, XRP has formed a classic bearish pattern on its two-day chart, which could lead to a price drop to $0.80 over the next few weeks.

Meanwhile, Bitdeer, the largest US Bitcoin miner, has sold its entire BTC stash, wiping its corporate Bitcoin treasury clean. The company sold 189.8 newly mined BTC and pulled 943.1 BTC from reserves, leaving its treasury with 0 BTC. This move has raised questions about the company's cash flow and its outlook for the next quarter.

The sale by Bitdeer is significant, as it highlights the pressure that Bitcoin miners are under to maintain their cash flow. As one analyst noted, Bitcoin miners typically carry Bitcoin as a buffer, which serves as a store of value and a means of managing risk. The fact that Bitdeer's buffer has reached zero suggests that the company may be facing significant challenges in the near term.

Overall, the cryptocurrency market is experiencing a period of heightened volatility, with a range of factors contributing to the uncertainty. While some developments, such as the launch of ProShares' GENIUS ETF, are seen as positive, others, such as the decline of Bitcoin and the sale by Bitdeer, are more bearish. As the market continues to evolve, it remains to be seen how these various factors will play out.

Sources:

• ProShares GENIUS ETF's $17B debut boosts case for tokenized money market funds (CoinTelegraph)
• Bitcoin rebound fades as software and private equity rout drags stocks and crypto lower (CoinDesk)
• Trump-Backed Stablecoin Briefly Slips as World Liberty Claims 'Coordinated Attack' (CoinDesk)
• XRP price chart and whale activity warn of a drop below $1 (CoinTelegraph)
• Largest US Bitcoin miner dumps entire BTC stash as margin pressure intensifies (CoinDesk)