Crypto rally nixed as Bitcoin and Ethereum lose steam

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Hopes of a sustained crypto rally took a hit on Tuesday as global market cap fell a further 2.47% to US$891.24bln in the early hours.

Bitcoin once again fell below the US$20,000 support line to trade at US$19,931 on the exchanges, while Ethereum dropped 4.83% to US$1,085.

Decentralised finance (DeFi) tokens seem intent of reversing their recently gained momentum:

Aave is down 9.47%; Uniswap is down 8.8%; Convex Finance is down 7.52%; and Compound is down 7.16%.

Somewhat surprisingly, Nexo protocol was among the morning’s few positive movers despite the ongoing centralised finance (CeFi) crisis sweeping the market.

The 1.79% bump comes amid ongoing bailout discussions between the Bulgarian crypto lender and Vauld, the fellow crypto lender on the brink of insolvency.

Blockchain projects had a comparatively good Tuesday, with Polygon, Mina Protocol, and multi-chain protocol Quant all posting single-digit gains.

Derivatives trading platform Synthetix gained 1.55% to break into the top-100 club with a market capitalisation of $272.95mln.

GBPT, the first pound-pegged stablecoin regulated in the British Isles, went live on the Gate.io centralised exchange.

Issuer Blackfridge obtained a financial services licence from the Isle of Man Financial Services Authority, to which the organisation is required to file monthly proof of reserves.

“Crypto is just complete fraud, over and over and over,” according to renowned short seller Andrew Left of Citron Research, making his position clear during a Monday financial fraud conference.

Citron was the subject of a 2021 criminal investigation into short selling instigated by the US Department of Justice.

Creditors of Mt. Gox, the Japanese exchange that folded in 2014, may finally recoup some of their losses as the once-largest Bitcoin trader is set to release US$3bln to the public.

140,000 BTC will be handed out in August, amid fears that creditors could dilute the market in a mass selling spree.