Major Developments for the Week
- Bitcoin passes $60K as recession fears ease
- SEC delays Hashdex Bitcoin-Ether ETF decision
- Ripple fined $125M; well below the $2B sought by SEC
- IRS drops sensitive data request from crypto tax form
- Solana Sees Record Jito Tips with Surge in Activity
- Bitcoin seen as ‘Safe Haven’ Amid Recession Worries
- Ripple penalty fuels XRP ETF hopes
- Fed Action Sparks Crypto Reset Fears Tied to Harris
- Hong Kong Crypto ETFs Face Market Hurdles
- Thailand Tests Crypto Innovation with New Sandbox
- Solana DePIN Project Raises $18M in Funding Round
- Bitcoin holds steady; Ethereum sees 4.5% boost despite volatility
- Coinbase pushes back on SEC’s rule, warns of DEX impact
- Crypto coalition urges Biden for clear digital asset regulations
- Russia legalizes crypto mining, new rules aim to cut dollar reliance
Bitcoin
Bitcoin bounces back: decline of jobless claims boosts crypto market
Bitcoin (BTC) experienced a significant price recovery, surging nearly 12% and passing $62K on Friday morning, marking its largest single-day gain since February 2022. This rebound comes after a sharp decline on Monday, when Bitcoin dropped to as low as $49,781 amid growing fears of a global recession.
This rally coincided with better-than-expected U.S. jobless claims data – the US Labor Department reported that jobless claims fell to a seasonally adjusted 233,000, the largest drop in 11 months, defying economists’ forecasts of 240,000. This eased recession fears and boosted U.S. stocks, leading to positive momentum for cryptocurrencies.
Past performance is not an indication of future results
The broader crypto market capitalization also increased by 11% to $2.11 trillion. Notably, U.S.-listed spot exchange-traded funds (ETFs) attracted $194.6 million in investor funds, the highest since July 2022.
The recent volatility in Bitcoin followed a dip to $50,000 earlier in the week, driven by concerns over U.S. economic conditions and the Bank of Japan’s rate hike. This positive economic data not only lifted U.S. stocks but also fueled Bitcoin’s recovery, alongside a broader 11% increase in the total crypto market capitalization to $2.11 trillion.
Large BTC holders, or “whales,” took advantage of the dip to accumulate more Bitcoin. Looking forward, $61,800 is seen as a critical level for bulls to maintain momentum, with support levels at $54,000 and $50,000 being crucial for sustaining the bullish outlook. Geopolitical developments and Federal Reserve policies will be key factors influencing Bitcoin’s next moves.
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Bitcoin and Ethereum
SEC delays verdict on Hashdex BTC-ETH Spot ETF until late 2024
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to approve or disapprove Hashdex’s proposed exchange-traded fund (ETF) that would directly hold spot Bitcoin and Ether until September 30, 2024. The ETF, known as the Hashdex Nasdaq Crypto Index US ETF, could potentially include additional crypto assets in the future, depending on regulatory developments. The SEC extended its decision-making period to allow more time to consider the proposal and related issues.
Hashdex initially filed for the ETF in July, and it would be based on the Nasdaq Crypto Index US methodology. If the regulatory landscape allows for other cryptocurrencies to be included in the index, the fund could expand its holdings beyond Bitcoin and Ether. However, any significant changes in the ETF’s structure would require further SEC approval. The ETF is set to be listed and traded on Nasdaq once approved.
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Other crypto news
IRS updates crypto tax form: sensitive data requests dropped, seeks public input
The IRS has released an updated draft of Form 1099-DA, which will be used by brokers and taxpayers to report digital asset transactions starting in 2025. The latest version of the form, set to be sent to taxpayers in early 2026, has removed previous requirements for reporting digital wallet addresses, transaction IDs, and broker types, following concerns raised by industry groups like the Chamber of Digital Commerce. The IRS is inviting public feedback on this draft for the next 30 days, aiming to improve clarity and accuracy in reporting digital asset transactions.
This move aligns with new rules established by the U.S. Treasury in June, requiring custodial crypto brokers to report digital asset sales and trades to the IRS, as part of efforts to combat crypto tax evasion. However, decentralized and non-custodial brokers, which do not hold digital assets, will be subject to different reporting requirements under separate regulations.
Ripple hit with $125M fine, SEC eyes further action
A federal judge has fined Ripple $125 million for violating securities laws through its institutional sales of XRP, a penalty significantly lower than the nearly $2 billion sought by the SEC. The SEC had aimed for $2 billion in disgorgement and prejudgment interest, along with $900 million in civil penalties. However, the court ruled that while Ripple’s direct sales to institutional clients broke the law, its retail sales of XRP through exchanges did not.
Despite the penalty, which includes a ban on future securities law violations, Ripple’s token, XRP, saw a modest 2% increase following the judgment. The ruling offers some relief to Ripple, but the SEC is likely to appeal the decision. Although XRP gained briefly on the news, it remains flat for the year.
Solana Sees Unprecedented Growth in Jito Tips and Token Launches
Solana’s ecosystem is experiencing a surge in activity, with Jito validator tips reaching a record 17,290 SOL (approximately $3.19 million) last week. This spike marks a significant increase from the stable levels observed over the past six months, indicating rising network engagement and shifting dynamics within the Solana ecosystem. Jito, a Solana-based MEV (Miner Extractable Value) solution, has been gaining popularity as it allows validators to capture additional value from transaction ordering, which seems to be increasingly recognized by Solana users and developers.
In tandem with the rise in Jito tips, the Solana network also saw the launch of 68,000 new tokens in a single week, highlighting a bustling ecosystem. However, this rapid growth raises questions about the quality of the projects being built and whether the activity is driven by genuine adoption or speculative behavior. As Solana continues to develop, metrics like daily active addresses, transaction counts, and total value locked (TVL) will be crucial for assessing the network’s health and sustainability.
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