Weekly Crypto News: 27/12/2023 to 02/01/2024
The year started the way we like it: with a pump in BTC and other cryptocurrencies.
The movement comes mainly from optimism surrounding the possible approval of the Bitcoin ETF on the spot market, one of the most talked about topics in recent months and which could bring several trillion dollars to the crypto market.
See the SEC calendar below regarding the approval or denial of ETFs
The most relevant period appears to be between 01/10/2024 and 01/15/2024. In this window, we will have the final deadline for deciding on Ark's ETF and the "next deadline" for ETFs from BlackRock, WisdomTree, Fidelity, Invesco and other relevant market players (which can still be extended).
Pay attention to Ark's deadline, which occurs on 01/10/2024, that is, 4 to 5 days before the deadline for other relevant players (to be more precise: BlackRock, BitWise, VanEck, Wisdomtree, Invesco , Fidelity).
The date 10/01 seems the most relevant, as their Ark ETF is structurally similar to BlackRock's, so approval of one can automatically mean approval for the other. As a result, approvals can be mass, arising from this process.
As imponderable factors, we observe the following:
The conversion of GBTC, the most established Grayscale Trust on the subject, is being overlooked. There is a request to convert it into an ETF being processed in an ongoing legal process, in which the SEC has already suffered a serious setback in the first instance.
The Ark ETF may be denied on 10/01, opening a window of opportunity on 14 and 15/01, where there is the highest concentration of requests. Note, however, that there is a fundamental difference between the Ark ETF and the others: the Ark ETF has a deadline of 01/10. The others, however, have deadlines of 14 and 15/01 - but they are not final deadlines. The deadline for ETFs from major players, except for Ark, only occurs in March.
Bitcoin rises past $45,000 amid US spot bitcoin ETF approval anticipation
The price of Bitcoin rose above $45,000 for the first time since April 2021. The price rise was driven by expectations that the United States Securities and Exchange Commission (SEC) may approve a spot Bitcoin ETF.
According to data from The Block, Bitcoin rose 5.8% in the last 24 hours to trade at 44,965 dollars at 9:25 am in Hong Kong. The high reached $45,083 during the morning.
The SEC could notify the 14 asset managers that have applied for spot Bitcoin ETF approval as early as Tuesday or Wednesday, ahead of the January 6 deadline. If the SEC approves ETFs, it could open the door for greater institutional investment in Bitcoin.
Bitcoin is the largest cryptocurrency in the world by market capitalization. The price of Bitcoin has fallen more than 70% since its all-time high of $69,000 in November 2021.
Bitcoin hash rate hits new high with 544 EH/s
The Bitcoin network hashrate reached a new record of 544 exahashes per second (EH/s) on December 25, 2023. This is a 130% increase since January 2023.
The hashrate is a measure of the computing power used to mine Bitcoin. A higher hashrate means the network is more secure and resistant to attacks.
The increase in hashrate can be attributed to a number of factors, including:
- The increase in the price of Bitcoin, which makes mining more profitable.
- Increased demand for Bitcoin, which attracts new miners.
- The development of new mining technologies, which make mining more efficient.
The increase in hashrate is a positive sign for the future of Bitcoin. It indicates that the network is becoming more secure and resilient, which could help attract more investors and users.
In simpler terms, Bitcoin is getting stronger.
Mt. Gox Appears to Have Started PayPal Repayments Tied to 2014 Bitcoin Hack
Cryptocurrency exchange Mt. Gox, which was hacked in 2014, appears to have initiated PayPal refunds linked to the hack.
According to user reports on the Mt. Gox subreddit, some customers are receiving payments in yen via PayPal. Mt. Gox has not officially confirmed the start of refunds, but the company said payments would begin in December 2023.
The Mt. Gox hack was one of the largest cyberattacks in history, with around 850,000 bitcoins stolen. The exchange has recovered around 20% of the stolen funds, and is using these funds to refund affected customers.
Refunds are being made in installments of 10% of the total amount due. Customers who have not yet received a refund should check their PayPal account to see if there is a pending payment.
The start of refunds is good news for Mt. Gox customers who were affected by the hack. However, it is still important to remember that refunds may take some time to complete.
Japan's Cabinet Proposes Scrapping Corporate Tax on Unrealized Crypto Gains
Japan's cabinet has approved a proposal to eliminate corporate tax on unrealized crypto gains. The proposal, which still needs to be approved by the Japanese parliament, would eliminate charging taxes on the difference between the market value and book value of crypto assets issued by other companies.
The proposal is an attempt to promote the development of the cryptocurrency industry in Japan. Eliminating the tax on unrealized gains would make it more attractive for Japanese companies to issue crypto assets.
The proposal is also in line with the policies of other countries, such as the United States and Switzerland. These countries are also considering eliminating the tax on unrealized gains for crypto assets.
Approval of the proposal by the Japanese parliament is expected in early 2024.
Grayscale refiles Bitcoin ETF application as Barry Silbert departs
Cryptocurrency asset manager Grayscale remade its application for a spot Bitcoin (BTC) ETF on the same day that Barry Silbert, CEO of parent company Digital Currency Group, announced his resignation from Grayscale's board of directors.
Silbert's departure can be seen as a positive sign for the future of Grayscale's application. Silbert was one of the main proponents of approving a spot Bitcoin ETF in the US, and his departure could reduce SEC resistance to the product.
Grayscale says its new application is up to date with the latest regulatory information and that the company is committed to working with the SEC to obtain approval for its ETF.
India Will Block Binance, Kraken, and Other Exchanges
India's Financial Intelligence Unit (FIU) announced on November 14, 2023 that it would block access to cryptocurrency platforms Binance, Kraken and others, claiming that the exchanges were operating illegally in the country.
The FIU says the exchanges have not registered with the agency and are not complying with the country's anti-money laundering and anti-terrorism laws. The blockade has been met with criticism from some quarters of the cryptocurrency industry, who argue that the measure is excessive and will harm Indian investors.
Solana Foundation officially presence in Brazil
The Solana Foundation, the organization responsible for developing the Solana network, announced on January 1, 2024 that it is making its presence official in Brazil. The foundation will invest R$50 million in the country to promote the development of the Solana community in Brazil.
The investment will be directed to the following projects:
- Creation of a local team to support the development of the Solana community in Brazil.
- Holding events and workshops to promote the adoption of Solana in Brazil.
- Support for research and development projects related to Solana in Brazil.
The Solana Foundation believes that Brazil has great potential for the development of blockchain technology and cryptocurrencies. The country has a young and growing population with a high level of digital literacy.
The Solana Foundation's investment in Brazil is a positive sign for the development of the blockchain ecosystem in the country. The investment could help boost the adoption of Solana in Brazil and contribute to the development of blockchain technology in the country.
Proposal to Reduce CAKE Token Total Supply
Arbitrum and Optimism tokens, two layer 2 solutions for the Ethereum network, are trading near their all-time highs.
The Arbitrum token reached a record price of $1.83 today before a slight decline, representing a 60% increase over the last 30 days. The Optimism token is also on the rise, with a 40% increase in the last 30 days.
Analysts believe that the increase in the prices of Arbitrum and Optimism tokens reflects increased interest in layer 2 solutions for the Ethereum network. Layer 2 solutions offer lower transaction fees and faster speeds than the main Ethereum network.
The year in data: 5 charts that show how crypto changed in 2023
The year 2023 was a year of recovery for the cryptocurrency market, after the sharp decline of 2022. Bitcoin, the main cryptocurrency, ended the year with an increase of 160%, while Ethereum, the second largest cryptocurrency, increased by 270%. %.
Here are five charts that show how the cryptocurrency market has changed in 2023:
The price of Bitcoin reached an all-time low of $16,600 in January 2023, but recovered to close the year at $42,000.
The price of Ethereum reached an all-time low of $880 in January 2023, but recovered to close the year at $1,900.
The total market capitalization of the cryptocurrency market reached an all-time high of $3.2 trillion in November 2023, before falling to $2.5 trillion by the end of the year.
Daily cryptocurrency trading volume reached an all-time high of $1.2 trillion in November 2023, before falling to $700 billion by the end of the year.
Institutional adoption of cryptocurrencies continued to increase in 2023. Large companies such as Tesla, MicroStrategy, and Square continued to purchase Bitcoin, and more and more banks and financial institutions began offering cryptocurrency services.
Overall, 2023 was a positive year for the cryptocurrency market. The sector continued to develop and mature, and institutional adoption continued to increase.
Blast Hits $1.1B in Deposits More Than a Month Before It's Due to Go Live
Blast, a new layer-2 blockchain developed by the creators of NFT platform Blur, reached over $1.1 billion in deposits just a month before its launch.
Deposits were attracted by an airdrop promised for May, even though the platform is not yet live. Speculators have deposited $1 billion in staked ether (stETH) and $103 million in DAI stablecoin since the Blast website launched last month.
The idea of allowing deposits on a platform that is not yet active has drawn criticism from some sectors of the cryptocurrency industry, with some suggesting that the project has the hallmarks of a pyramid scheme.
Blast is a layer 2 blockchain that aims to offer lower transaction fees and faster speeds than the main Ethereum network. The platform is based on the Rollup protocol, which allows transactions to be executed off the main chain, which reduces congestion and fees.
Blast has not yet launched, but its early success shows the growing interest in layer 2 solutions for Ethereum.
zkSync went down for 5 hours on Christmas Day but is now back online
On December 25, 2023, the zkSync network was down for about five hours. The zkSync team attributed the problem to a bug in the network software that incorrectly triggered a security protocol.
The zkSync network is a layer 2 solution for the Ethereum network that offers lower transaction fees and faster speeds. The issue caused concern among users and developers, as it showed that even layer 2 solutions are not immune to problems.
The zkSync team said it is working to improve network security and prevent similar issues from occurring in the future.
Vitalik Buterin Wants to Modify Ethereum's Proof-of-Stake Model
Ethereum creator Vitalik Buterin published a blog post on January 2, 2024 proposing changes to the network's proof-of-stake (PoS) consensus model.
Buterin argues that Ethereum's current PoS model is inefficient and could limit the network's growth. He proposes three approaches to improve the model:
Reduce the number of validators: Buterin suggests reducing the number of validators required to form a block of transactions. This would reduce the cost of running a validation node and make it easier for people to participate in the consensus process.
Allow validators to be elected by voting: Buterin suggests allowing users to vote for who they want to be validators. This would help ensure that validators are representative of the Ethereum community.
Introduce a harsher penalty system: Buterin suggests introducing a harsher penalty system for validators who behave maliciously. This would help discourage bad behavior and keep the network secure.
Buterin's proposals are still in the development phase, but they represent a significant shift in the Ethereum consensus paradigm. If implemented, they could help make the network more efficient, inclusive and secure.
Avalanche Foundation is about to start buying memecoins for the ‘culture’
News summary "Avalanche Foundation is about to start buying memecoins for the 'culture'"
The Avalanche Foundation, a non-profit organization overseeing the development of the Avalanche network, announced that it will begin purchasing memecoins with its $100 million incubator fund.
The Avalanche Foundation says purchasing memecoins is part of its "Culture Catalyst" initiative, which aims to support culture and creativity on the blockchain. The foundation believes that memecoins are an important form of cultural expression and that they can help promote the adoption of blockchain by a wider audience.
The Avalanche Foundation did not reveal which memecoins it will purchase, but said it will focus on projects with a strong community and strong growth potential. The foundation also said it will work with memecoin creators to ensure the coins are used responsibly and sustainably.
The Avalanche Foundation’s purchase of memecoins is a significant move. It is the first time that an important organization in the world of cryptocurrencies has invested in memecoins. The foundation's decision could help legitimize memecoins and increase their adoption potential.
Solana DEXs book record volumes following airdrops
News summary "Solana DEXs book record volumes following airdrops"
Solana's DEXs (decentralized exchanges) saw record volumes in December 2023 following a series of airdrops that distributed tokens to network users.
Solana's total DEX trading volume reached $5.8 billion in December, a 26% increase from the previous month. The growth was driven by token airdrops from projects such as Serum, Raydium and Orca.
Serum, a leading DEX on Solana, recorded trading volume of $2.5 billion in December, a 30% increase from the previous month. Raydium, another popular DEX, recorded trading volume of $1.6 billion in December, a 20% increase from the previous month. Orca, a DEX specializing in derivatives token trading, recorded trading volume of $1.7 billion in December, a 40% increase from the previous month.
Airdrops are a way for cryptocurrency projects to distribute free tokens to users. They are often used to encourage the adoption of new projects or to reward users for their support.
The increase in trading volume for Solana DEXs is a sign that the network is becoming more popular for cryptocurrency trading. Airdrops likely played a major role in this growth, but it is also possible that the increase is the result of a general increase in interest in cryptocurrencies.
Posted Using InLeo Alpha