Significant movements were observed in the cryptocurrency market as major currencies declined ahead of the opening of the US stock market on Monday. This dip comes amid the European Union's implementation of new regulations aimed at overseeing crypto exchanges which are set to result in a widescale delisting of the largest stablecoin, Tether's USDT. Bitcoin was trading at approximately $93,603, marking a decrease of about 0.2% prior to the market bell.
Similarly, Ethereum (ETH) faced a drop of 0.4%, trading at $3,405. The cumulative market cap of the global crypto sphere fell by 0.9%, landing at an estimated $3.3 trillion. Notably, the CoinDesk Market Index recorded a decline of about 1.1% over the previous 24 hours, reflecting the overarching bearish sentiment. The newly enacted Markets in Crypto Assets Regulation, commonly known as MiCA, goes into effect today.
This pivotal framework is designed to regulate crypto-asset service providers within the EU's member countries. Legislators are optimistic that these new guidelines will bolster market stability and safeguard investors by addressing prevalent data deficiencies while standardizing supervisory practices across the region. In a significant fallout of these regulations, Tether's USDT will face delisting from a majority of European central exchanges due to its failure to meet the compliance standards established under MiCA.
This action highlights the increasing scrutiny and regulatory expectations placed on the crypto market, particularly for stablecoins that back their value to fiat currencies like the US dollar. In other market news, US-traded spot-price bitcoin exchange-traded funds (ETFs) witnessed investors redeeming over $387 million in total holdings last week.
This significant movement has led the funds' total assets to reach $106.68 billion at the commencement of this week, as per data compiled by research platform SoSoValue. Conversely, the nine spot-price ethereum ETFs reported a noteworthy total net inflow of $349.2 million during the same period, bringing their cumulative net assets to $12.11 billion.
This demonstrates a growing interest in ether as investors navigate through the complexities of the evolving crypto landscape. Looking ahead, this week's economic data releases are positioned to influence the markets. Key reports include the Chicago Purchasing Managers' Index data for December and the pending home sales index for November, both due later today.
The forthcoming Tuesday economic calendar is expected to feature the Case-Shiller Home Price Index and the Federal Housing Finance Agency's House Price Index, both pertaining to October figures. Additionally, data related to weekly mortgage applications and jobless claims will be announced on Thursday.
Lastly, investors will keep a close watch on the manufacturing index data for December to be released on Friday by the Institute for Supply Management. It's noteworthy that US markets will observe a closure on Wednesday in honor of New Year's Day, a consideration for traders and investors alike as they adjust their strategies during this festive period..