Bitcoin and Ethereum Stable as Other Cryptocurrencies Make Headlines
In the world of cryptocurrency, it was a week full of news and developments. However, the market leaders Bitcoin and Ethereum remained stable, showing that cryptocurrencies are less reactive to current events compared to previous years.
Bitcoin (BTC) experienced a modest 2.7% growth over the past week, reaching a price of $27,952. It even briefly hit a two-month high when it crossed the $28,000 threshold on Sunday night.
Ethereum (ETH), on the other hand, had a tougher week with a 2.1% loss, trading at $1,636. This decline comes despite positive announcements such as the UBS asset tokenization trial supported by the Monetary Authority of Singapore (MAS) and the launch of nine Ethereum Futures ETFs in the U.S.
Grayscale’s Plan to Convert Ethereum Trust into Spot ETF
Grayscale, a crypto asset manager, announced its intention to convert its Ethereum trust into a spot ETF. This move follows their previous courtroom victory against the Securities and Exchange Commission (SEC) regarding their Bitcoin trust conversion. The SEC also faced defeat in its lawsuit against Ripple, where Judge Torres upheld her ruling that selling XRP to retail consumers does not violate American securities laws.
Ripple did receive positive news with the acquisition of a Major Payments Institution license from MAS. However, XRP’s price fell by 1.6% over the past week.
Notable Price Movements: Avalanche and Solana
Only two cryptocurrencies experienced significant price movements this week. Avalanche (AVAX) and Solana (SOL) both rallied around 15%. Currently, Avalanche is trading at $10.39, while Solana is valued at $23.31.
The Solana network’s total value locked (TVL) also reached a new high of $338.82 million on Monday.
In the News…
The week began with Coinbase obtaining a Major Payment Institution (MPI) license from MAS. This license complements their In-Principle Approval received last year and supports their global expansion plans due to regulatory uncertainties in the U.S.
The Financial Conduct Authority (FCA) announced its intention to launch a Digital Securities Sandbox (DSS) by the end of Q1 2023. The DSS will provide a controlled test environment for innovative products related to digital securities.
Hong Kong’s police force and Securities and Futures Commission (SFC) established a joint task force to monitor illegal activities on crypto exchanges following the suspension of trading on JPEX exchange. This comes after one of the largest cases of financial fraud in Hong Kong’s history, affecting over 2,300 victims.
A report by Chainalysis revealed that Hong Kong has seen significant inflows in cryptocurrency, rivaling those of mainland China despite having only 0.5% of its population.
Lastly, both Starbucks and the Museum of Modern Art launched their own NFTs this week.
Hot Take: A Mixed Week for Cryptocurrencies
This week showcased a mixed performance for cryptocurrencies. While Bitcoin and Ethereum remained stable, other cryptocurrencies experienced notable price movements. Regulatory developments, legal battles, and positive announcements influenced market dynamics. It remains to be seen how these factors will continue to shape the crypto landscape in the coming weeks.
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