CoinDesk 20 Index: 1,892 +1.2%
Bitcoin (BTC): $57,601 +0.8%
Ether (ETC): $2,451 −1.3%
S&P 500: 5,199.50 −0.8%
Gold: $2,451 +2.5%
Nikkei 225: 34,831.15 −0.74%

A message from Radix

Bitcoin was little changed during the European morning, trading just above $57,000, 0.2% higher than 24 hours ago. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), is similarly sedate, sitting 0.6% higher. One stand-out is XRP, which jumped nearly 20% after Ripple's long-running legal case with the SEC reached a settlement. On Wednesday, a federal judge ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations. Although the case is said to have reached its end, the SEC is expected to appeal the ruling – likely extending legal matters.

Japanese investment adviser Metaplanet arranged a 1 billion-yen ($6.8 million) loan to buy more bitcoin after adopting the largest cryptocurrency as a reserve asset earlier this year. The Tokyo-based company said it borrowed the money from shareholder MMXX Ventures "with the entire amount allocated for purchasing bitcoin", in a statement on its website. The six-month loan carries an annual interest rate of 0.1%. In May, Metaplanet said it would adopt bitcoin as a reserve asset to hedge against the volatility of the yen. At the start of July, it held 161.3 BTC ($9.2 million). The company's strategy mimics that of software developer MicroStrategy, which has been acquiring bitcoin for over four years and holds in excess of 226,000 BTC.

Brazil's markets regulator, CVM, approved a Solana-based ETF. It is the first product of its kind in Brazil and among the first Solana-based exchange-traded products (ETPs) globally. The Solana-based ETF is in a pre-operational stage, so has yet to be approved by the Brazilian stock exchange, B3. Exame, a local news organization, said the product would follow the CME CF Solana Dollar Reference Rate, created by CF Benchmarks. Brazilian asset manager QR Asset will offer the ETF, while Vortx, a local fintech focused on capital markets, will serve as its manager, the report stated. SOL trades at just under $154, 1.1% higher in the last 24 hours, at the time of writing.

Slower U.S. consumer borrowing could present a risk to bitcoin value, according to 10x Research's founder Markus Thielen.

Total credit outstanding increased by $8.9 billion in June following an upwardly revised $13.9 billion in May, according to Fed data released on Wednesday. Delinquency rates, a measure of late repayments of more than 90 days and a sign of deteriorating household balance sheets, were 10.93%, the highest since first-quarter 2012.

It's a sign U.S. consumers have maxed out their borrowing capacity and presents a challenge to bullish crypto narratives, according to Thielen.

"Weak U.S. consumer credit data, which dropped from $11.3 billion to $8.9 billion (below the expected $10 billion), mainly due to rare negative credit card debt and soaring delinquencies, signals a collapsing personal savings rate. This is significant for crypto as it suggests the fiat-to-crypto onramp will remain constrained due to maxed-out U.S. consumers," he said in a note to clients.

- Omkar Godbole