Weekly Recap: Bitcoin, Binance, Ethereum, Solana...crypto news you shouldn't have missed!

Week after week, the world of cryptocurrencies continues to captivate and redefine the boundaries of digital finance and blockchain technology. This week was no exception, bringing its share of major developments, innovations, and surprises. In our weekly round-up, we dive into the most striking and influential stories that have shaped the crypto ecosystem. From the historic SEC approval of Bitcoin Spot ETFs, to Standard Chartered’s bold prediction on Bitcoin’s price, to the resilience of Binance Pay in the face of regulatory challenges, the prospects for ETFs for Ethereum and XRP, and the explosion of development activity on Solana, we will review the highlights of the past week.

Bitcoin Spot ETF: The SEC says Yes!

The United States Securities and Exchange Commission (SEC) has made a historic step by finally approving Spot ETFs for Bitcoin. This decision, long awaited by investors, marks a crucial turning point in the history of Bitcoin. Financial giants such as VanEck, Fidelity, and BlackRock now have their pass to offer innovative investment opportunities in Bitcoin. This approval is the result of a change in stance by the SEC, which had previously rejected over 20 proposals for Bitcoin ETFs. A judgment by the United States Court of Appeals for the District of Columbia played a key role, challenging the SEC’s previous refusals and paving the way for this new era.

However, the impact of this approval on the Bitcoin market was not as spectacular as expected. The price of Bitcoin had already incorporated this news, having seen a steady increase in the preceding weeks. The announcement did not cause a major upheaval in the Bitcoin price but instead led to a significant rise in altcoins. Although the future of Bitcoin with Spot ETFs remains uncertain, it is undeniably promising, clearing the way for further integration into the traditional financial system.

Bitcoin at $200,000? Standard Chartered anticipates a big leap

Standard Chartered Bank, a renowned financial institution, forecasts a dramatic increase in the price of Bitcoin, potentially reaching $100,000 this year and doubling to $200,000 by the end of 2025. This bold prediction is based on the recent approval of Bitcoin ETFs by the SEC, an event the bank considers a decisive moment for the normalization of institutional investor participation in the Bitcoin market. Drawing a parallel to the impact of the first gold-backed ETF, the SPDR Gold Shares (GLD), on the gold market, Standard Chartered examines the potential effects of Bitcoin ETFs on the crypto market. The GLD, launched in 2004, saw an influx of $88 billion in its first year.

The bank estimates that Bitcoin could see similar growth to gold following the introduction of the GLD, but at a faster pace. Their projections suggest that between 400,000 and 1.3 million bitcoins could be held by ETFs by the end of 2024, representing a value of $50 to $100 billion.

Binance Pay: Triumphs amidst the regulatory storm

In 2023, Binance Pay has demonstrated impressive resilience and growth despite a challenging regulatory environment. The platform recorded a transaction volume of $77 billion, marking an increase of 71% from the previous year. This remarkable performance is accompanied by a 70% growth in its user base, showcasing the growing adoption of cryptos for payments. Binance Pay has not only successfully navigated through the complex regulatory landscape but has also redefined the possibilities in the realm of cryptocurrency payments. With innovative features and strategic partnerships, Binance Pay has extended its influence across various sectors.

Binance Pay has established itself as a cornerstone of crypto adoption, revolutionizing the financial sector, including by integrating cryptocurrencies into salary payments and loyalty programs. These initiatives have contributed to wider adoption of these assets across various industries.

Bitcoin 2024: Between Initial Momentum and Anticipated Decline

Matrixport, an expert company in crypto investment products, predicts a turbulent year for Bitcoin in 2024. In January, Bitcoin is expected to experience an impressive increase of +17%, moving from $42,265 to $49,450. However, this climb would be short-lived. As of March, a significant drop is anticipated, with a -14% depreciation, bringing Bitcoin back to about $36,350. A rapid rise followed by an abrupt decline.

At the same time, trading signals indicate a short-term weakness for Bitcoin, with an anticipated drop of -7% in the coming two weeks. The always unpredictable Bitcoin continues to capture the attention of investors and crypto enthusiasts, promising an eventful year in 2024.

Banking Restrictions on Bitcoin ETFs in the United States

The introduction of Bitcoin ETFs marked a historical record with a volume of more than $4.5 billion on the first day, involving key players such as Blackrock, Fidelity, and Tempelton. However, a surprising development emerged: millions of Americans found themselves unable to buy these Bitcoin ETFs. Major American banks, such as Vanguard, have refused to offer Bitcoin ETFs to their clients, citing the high volatility of Bitcoin as contrary to their goal of generating positive real returns over the long term.

The refusal of banks to provide access to Bitcoin ETFs has created a distinct divide between wealthy customers and others. Banks like UBS and Merrill Lynch have reserved access to Bitcoin ETFs only for their wealthiest clients, with high investment thresholds. This situation has led to frustrations among ordinary customers, many of whom are choosing to close their accounts with Vanguard. Gabor Gurbacs, an advisor at Tether and Vaneck, suggested that the banks might simply need time to integrate the new ETFs, but the immediate impact of these restrictions remains significant for many American investors.

🌐 Ethereum and XRP: Next on the ETF list?

Steve McClurg, the Chief Investment Officer at Valkyrie Funds, expressed his optimism during an interview with Bloomberg, regarding the imminent approval of Spot ETFs for Ripple and Ethereum following the Bitcoin ETF. This regulatory advance is seen as a major positive signal for the crypto sector and paves the way for broader adoption of financial vehicles directly backed by cryptos.

McClurg highlights the growing interest of investors to diversify their holdings in cryptocurrencies. He points out the example of Grayscale, which recently added Ripple to one of its publicly traded trusts. These financial vehicles, focused on the general public, make it easier for novice investors to access cryptos. However, McClurg acknowledges that the regulatory approval process remains unpredictable, and nothing is yet fully assured.

Solana: Explosive Growth with 2,500 Active Developers

The Solana blockchain stands out in the crypto universe with impressive growth, recording a 50% increase in developer retention over the past three months. With over 2,500 active developers monthly, Solana demonstrates the robustness and vitality of its ecosystem. This significant increase, reflecting heightened activity on the network, is a powerful indicator of Solana’s health, which is positioning itself among the biggest crypto blockchains. It’s important to note that these figures focus solely on contributions to public repositories. Concurrently, this growth in developer retention coincides with a spectacular surge in activity on Solana’s crypto ecosystem. The cryptocurrency SOL saw a meteoric rise of 500% between October and December, fueled by the frenzy around MEME coins based on SOL, briefly propelling SOL ahead of BNB in terms of market capitalization.

However, despite this impressive growth, Developer Report data indicates a downturn in activity on Solana for a period. As of October 1st, the number of developers was only 946, a decrease from the all-time high of 2,634 reached on December 22, 2022. In comparison, the total number of active monthly developers on Ethereum was 4,769 on October 1st, 2023, showing a 22% decrease from its peak of 7,433 reached on June 16, 2022.

That’s the gist of what to remember for this week. But if you want a more detailed recap and in-depth analyses directly in your inbox, feel free to subscribe to our weekly newsletter.