Welcome to another week in the dynamic world of crypto, where developments and disappointments seem to go hand in hand. This week brings a spotlight on five crucial aspects that crypto enthusiasts and investors need to keep a close eye on. From the much-anticipated Bitcoin ETFs to the regulatory moves by the U.S. Securities and Exchange Commission (SEC), the landscape is rife with anticipation and, in some cases, a fair share of letdowns.
Crypto this week – What you missed
The global crypto market capitalization fell 0.75% to $1,590 billion between Monday and Saturday. While the drop was minor, the crypto market cap fell from its January 11 high of $1,808 billion, its highest level since April 2022.
As of this writing, Bitcoin (BTC) is worth $41,792.26, up 0.2% from an hour ago and 0.5% from yesterday. The value of Bitcoin today is 2.7% lower than it was 7 days ago. The Fear and Greed Index is at 56.
The global crypto market capitalization is now $1.73 trillion, up 0.94% in the last 24 hours and 59.17% in the last year. As of today, Bitcoin’s market cap is $818 billion, reflecting a 47.39% domination. Meanwhile, stablecoins’ market capitalization is $135 billion, accounting for 7.84% of the total crypto market capitalization.
BTC ETFs – What a shock!!
Another week has passed since the launch of spot Bitcoin ETFs in the United States trading landscape. Market figures show a massive spike in the popularity of these ETFs shortly after their launch.
In line with this, net inflows continued to rise this week, followed by an increase in ETFs’ total trading volume. BlackRock, Fidelity, and Bitwise look to be dominating the list of best ETF service providers, attracting investors from across the United States.
Meanwhile, Hong Kong is preparing to seek approval for its first Bitcoin ETF. Venture Smart Financial Holdings Ltd, a financial services firm, announced plans for the same this week.
Despite an increase in BTC-spot ETF trading volumes, BTC remained down. Bloomberg Intelligence ETF analyst Eric Balchunas reported trade volumes for the first six days of trading, saying. “The ‘Nine’ saw another jump in volume today, up 12% vs Thur and 53% from Wed, a rare phenomenon.”
Falling expectations on a March Fed rate cut most likely contributed to the losses. According to the CME FedWatch Tool, the chance of a March Fed rate cut has dropped from 76.9% (Jan-12) to 48.1% (Jan-19). The US dollar index (DXY) closed the week up 0.96% at 102.932.
The SEC won’t just give up!!
Judge Katherine Failla heard oral arguments regarding the Coinbase motion to dismiss (MTD) on Wednesday, January 17. Judge Failla conducted fact-finding during the initial hour of the hearing. The SEC revealed its stance concerning cryptocurrencies and securities regulations.
In response to Judge Failla’s inquiries, the SEC stated that the thirteen crypto coins referenced in the SEC v Coinbase case were securities at the moment they were issued. The SEC contended that crypto investors invest with the expectation of profit in the ecosystems underlying each token.
The SEC made a notable reference to Judge Rakoff’s ruling in the SEC v Terraform Labs case. As determined by Judge Rakoff, Luna and TerraUSD are securities. Furthermore, in the ongoing SEC v Ripple case, the SEC acknowledged its disagreement with the Programmatic Sales of XRP ruling.
The SEC argued that there was no distinction between crypto sales to institutional and retail investors in light of the Programmatic Sales decision. On Thursday, Coinbase shares declined 7.11% as investors responded to developments at the court hearing. In the week ending January 19, Coinbase shares fell 4.61% due to the sell-off on Thursday.
Binance is in the limelight again!
This week, Binance, the preeminent crypto exchange globally, delivered a number of significant notifications to its user base. The platform’s recent acquisition of Manta Network coincides with the fact that Manta Pacific’s TVL has surpassed $800 million. In addition, it augmented its holdings with a DOGE perpetual contract that provides 75x leverage.
It is worth mentioning that the firm also removed particular BTC, ETH, and BNB spot trading pairings from its list. However, it announced the inclusion of ETC, ENS, and TIA in the FDUSD & USDC pairs. Concurrently, the company declared its entry into the Thai market, which Gulf Binance facilitated.
This concludes yet another week in which Binance has witnessed a tidal wave of breakthroughs.
ETH spot ETF decision
The SEC postponed its decision regarding the Fidelity ETH-spot ETF application on Thursday. Thursday saw ETH decline 2.38%, closing the session at $2,467. ETH averted a resurgence below $2,300, notwithstanding what SEC Chair Gary Gensler had previously stated.
Importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.
Gary Gensler
The current value of Ethereum (ETH) is $2,478.67, reflecting a 0.1% surge from one hour ago and a 0.5% surge since the previous day at the time of writing. Compared to seven days ago, the value of ETH is 2.4% less today. Volume-wise, Ethereum transactions totaled $4,482,414,349 over the last twenty-four hours.
