Weekly Crypto Roundup: Highlights & Insights

Published on: Jan 23, 2024|4 min read

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London: 23 January 2024 (TraderMade): This week has been a rollercoaster in the cryptocurrency universe, with the crypto market experiencing sustainability milestones in Bitcoin mining, Layer-2 excitement in Ethereum, and a legal showdown looming over Binance.

Let us navigate through the highs and lows, providing insights into the latest crypto landscape developments.

Key Takeaways

False reports circulate about SEC-approved Spot Bitcoin ETFs achieving $4.6 billion in day one trading volume, overshadowing combined 2023 ETF launches.
Bitcoin mining reaches a sustainability milestone, hitting 54.5% of energy from sustainable sources.
USDC issuer Circle files for an IPO confidentially, signaling stablecoins' growing influence in traditional finance.
US Senate introduces bills challenging CBDC classification as "money," with Trump opposing a US CBDC if re-elected.
BTCUSD experiences a dip post-ETF approvals, with the Bitcoin greed index dropping to "neutral" and the daily RSI hitting a four-month low.

Crypto Market Highlights

Bitcoin ETFs: A Green Light Frenzy

The false news of SEC's approval of Spot Bitcoin ETFs set the crypto world ablaze, generating a jaw-dropping $4.6 billion in trading volume on day one – a feat that eclipsed the combined daily volume of all ETFs launched in 2023. However, the initial euphoria wasn't sustained as the Bitcoin greed index slipped to "neutral," leaving traders on the edge.

Sustainable Mining Triumph

In a landmark achievement, Bitcoin mining reached an all-time sustainability high, with 54.5% of energy sourced from sustainable methods. This marked shift underscores a commendable commitment to environmental responsibility within the crypto industry.

Circle's Stealthy IPO Move

USDC issuer Circle made strategic waves by confidentially filing for an IPO in the US, signaling the increasing influence of stablecoins in traditional financial landscapes.

US Senate Challenges CBDCs

The US Senate shook things up by introducing bills challenging the classification of Central Bank Digital Currencies (CBDCs) as "money." Former President Trump chimed in, vowing to block a US CBDC creation if re-elected.

Binance's Battle with the SEC

The Legal Showdown: Amid these market highs and lows, another crypto drama unfolds as Binance, the world's largest crypto exchange, prepares for a showdown with the US SEC. The SEC filed a June lawsuit alleging various rule violations by Binance, its CEO Changpeng Zhao, and its US arm.

Binance's Defense: BAM Trading, the operator of Binance.US, argues that the SEC lacks the authority to oversee crypto assets, echoing Coinbase's stance. Both exchanges seek dismissal of the SEC cases. Binance asserts the SEC hasn't demonstrated any fraudulent activities on its part.

Strategic Decisions: While Binance settled with other authorities last year, it remains unwilling to settle with the SEC. Settling could mean acknowledging the tokens in question are securities, potentially impacting Binance's business model. The exchange appears poised to take its chances in court, confident in its argument that the SEC is overreaching its jurisdiction.

Industry Implications: This legal battle adds another chapter to the SEC's recent targeting of crypto firms. Initially focused on token issuers, the SEC has broadened its scope to include trading platforms and broker-dealers. The outcome of this case, alongside the Ripple case, will significantly influence the SEC's authority over the crypto sector.

Week In Review

False news that SEC-approved Spot Bitcoin ETFs achieved $4.6 billion in trading volume on the first day, surpassing the combined daily volume of all 2023 ETF launches threefold.
Bitcoin mining has reached a record sustainability level of 54.5%.
USDC issuer Circle confidentially files for an IPO in the US.
US Senate bills challenge CBDCs classification as "money"; Trump vows opposition to a US CBDC if re-elected.
Bitcoin greed index drops to "neutral" post-ETF approvals, causing a four-month low in the daily Relative Strength Index (RSI).
US inflation surpasses forecasts, rising to 3.4% in December, with weekly jobless claims hitting a 16-month low.

We are at a pivotal moment as the crypto landscape continues its dynamic evolution. Opportunities and challenges coexist, shaping the future of the crypto world. Stay informed, trade wisely, and brace yourself for the unfolding chapters in this thrilling crypto saga!