Weekly Market Wrap: Bitcoin Surpasses $42K as Crypto Market Resumes Pre-Terra Levels
In a significant recovery, Bitcoin (BTC) has surged beyond $42,000, reaching levels last seen before the Terra crash in April 2022. This marks a notable milestone, with Bitcoin's price flirting with the $40,000 threshold before breaching it, currently trading above $41,600. Ether (ETH) has also experienced an upswing, surpassing $2,200 for the first time since May 2022.
However, other major altcoins like Cardano (ADA), Tron (TRX), Avalanche (AVAX), and Dogecoin (DOGE) have seen marginal declines of approximately 2%. Ripple (XRP), Polygon (MATIC), and Chainlink (LINK) have experienced more significant declines, each seeing a 4% decrease. Solana (SOL) has retraced the most among larger-cap altcoins, with a decrease of over 6%, settling just above $60.
The total crypto market cap has witnessed a slight contraction from its recent peak, currently hovering just below $1.550 trillion on CoinMarketCap. Despite this, positive sentiment persists, indicating a resurgence of confidence and heightened interest in the overall cryptocurrency market.
The recent positive momentum in the crypto market is attributed to optimistic remarks from U.S. central bankers and the anticipation of a potential approval for a spot Bitcoin exchange-traded fund (ETF) in the United States.
As institutional investors speculate on ETF approval, existing Bitcoin futures-based products have experienced increased inflows, breaking records set in 2021. The crypto market's recent performance underscores a resurgence in confidence and interest, driven by positive market dynamics and regulatory developments.
Large Ether Holder Transfers Nearly $90M to Kraken
An extensive Ethereum (ETH) holder, dormant for five years, has transferred almost $90 million worth of the token to the Kraken exchange, as reported by the on-chain analytics tool Lookonchain. The whale deposited 39,260 ETH during the Asian morning hours, with previous activity on the address indicating a receipt of 47,260 ETH in 2017. Notably, this address has no evident connection to exchange cold storage. However, a transaction may have ties to trading firm Cumberland. The move to an exchange often implies a potential sell-off for stablecoins or other tokens, which could exert selling pressure. Kraken's available market depth for ETH trading pairs surpasses $5 million, indicating a transaction of this magnitude could influence the market by at least 2%. This notable transfer raises questions about the intentions behind moving such a substantial amount after an extended period of inactivity.
BlackRock Secures $100K Seed Funding for Bitcoin ETF
BlackRock, the world's largest asset manager, has received $100,000 in seed funding for its spot Bitcoin exchange-traded fund (ETF), according to a recent filing with the United States Securities and Exchange Commission (SEC). The undisclosed investor purchased 4,000 shares at $25.00 per share on October 27, 2023, acting as a statutory underwriter for the Seed Creation Baskets. BlackRock outlined plans to pay the sponsor's fee by borrowing Bitcoin or cash as trade credit on a short-term basis, enabling the firm to charge fees via a loan rather than selling BTC, minimizing the potential impact on BTC prices. This development comes as BlackRock, alongside other financial giants, vies to launch the first spot Bitcoin ETF in the U.S., with its application currently among 13 awaiting the SEC's decision.
XBO Featured Coin of the Week —– ETH
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, a groundbreaking platform supporting smart contracts and decentralized applications (DApps). Launched in 2015, Ether serves as the essential fuel for the Ethereum network, facilitating transactions and incentivizing miners.
In 2022, Ethereum underwent a pivotal transition known as The Merge, shifting from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. The Merge seamlessly combined the existing PoW Ethereum mainnet with the Beacon Chain, a PoS chain, marking a significant reduction in ETH issuance—termed the "triple halving," akin to Bitcoin's halving events. With over 14 million ETH staked, the network may become deflationary, and stakers stand to earn 8-12% annual returns, though withdrawal is subject to the Shanghai upgrade, expected 6 to 12 months later.
Despite maintaining a similar block production rate, The Merge doesn't immediately address transaction throughput or gas fees. Governance changes will continue to be off-chain through stakeholder discussions. Crucially, Ethereum's energy consumption is slated to plummet from 112 TWh/yr to a mere 0.01 TWh/yr, an impressive 99.9% reduction.
This environmental improvement aligns with growing institutional interest in sustainable assets, potentially attracting substantial investment. However, Ethereum miners, valued at $19 billion, are exploring ETHPoW, a proof-of-work hard fork, showcasing the dynamic landscape around this transformative cryptocurrency. As Ethereum continues to evolve, its influence extends beyond transactions, shaping the future of decentralized applications and smart contracts in the blockchain space. Explore the potential of ETH on our crypto trading platform, tapping into the next phase of Ethereum's journey.
Buy, sell, and swap ETH securely at XBO.com.
Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.
