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

Every week, the dynamic world of cryptocurrencies offers us new perspectives and boldly redraws the boundaries of digital finance and blockchain technology. This week was no exception. In this post, we will explore the recent events and trends that have marked the crypto ecosystem. From the European Union’s initiative for greater transparency in cryptocurrency transactions over 1,000 euros, to the impact of massive Bitcoin sales by miners, the flow of European capital towards American Bitcoin ETFs, Robinhood’s strategic accumulation of Shiba Inu, Binance’s insightful predictions for 2024, the UN’s revelations about USDT as a favored tool by scammers, to the exciting announcement of a new version of the Solana Saga smartphone.

Enhanced Transparency for Crypto Transactions Over €1000 in EU

The European Union has recently taken steps to increase transparency in cryptocurrency transactions. An agreement between the European Council and the European Parliament aims to strengthen the due diligence measures required of crypto businesses for transactions exceeding 1,000 euros (approx. 1,090 dollars). This initiative is part of the fight against money laundering and aims to mitigate the financial risks associated with cryptocurrency transactions. In particular, the agreement emphasizes improving transparency and security, especially concerning transactions involving self-hosted wallets, often used for illicit activities.

These new rules, however, are not yet in force. Their implementation depends on the formal approval of the European Parliament, which must agree on the texts with the Council before their adoption and publication in the Official Journal of the European Union. This regulatory development is part of a broader effort by regulators to address vulnerabilities and illicit activities in the crypto ecosystem. Recently, the European Banking Authority also extended its guidelines on money laundering and terrorist financing risk factors to the crypto industry, highlighting a collective effort to align regulatory practices with the evolving nature of these financial technologies.

Massive Sales by Bitcoin Miners: A Prelude to a Crash?

The Bitcoin market is currently under strain due to a significant increase in sales by Bitcoin miners. The Miner Position Index (MPI), which measures miner outflows against their annual moving average, has recently reached alarming levels, the highest since January 2021. This spike in MPI indicates that miners are selling their bitcoins at a more sustained pace than usual. Traditionally, miners sell some of their bitcoins to cover operational costs, such as electricity bills. However, an increase in the speed of these sales can raise concerns in the market, as it could signal a bearish trend for the price of Bitcoin.

The flagship crypto market, extremely sensitive to the actions of miners, responds sharply to these changes. The recent spike in the MPI is not just another figure but a potentially powerful indicator of upcoming changes in the market. This situation highlights the delicate balance between supply and demand in the Bitcoin ecosystem. Indeed, every movement by miners can have a significant impact on the markets and potentially trigger bearish or bullish trends.

Exodus of European Capital towards American Bitcoin ETFs

Europe is witnessing a massive reallocation of capital from its own crypto funds to the new Bitcoin-backed ETFs (Exchange-Traded Funds) launched in the United States. According to Luke Nolan, a research associate at CoinShares, outflows of capital from European Bitcoin ETPs (Exchange-Traded Products) have significantly increased since the introduction of American spot Bitcoin ETFs. This trend reflects a significant shift by American institutional investors, who now prefer to invest in financial products based in the United States, deemed more profitable and convenient. Previously, these investors used European ETPs for low-risk arbitrage, but with the arrival of American ETFs, they find it more advantageous to carry out these transactions on their domestic market.

The approval of Bitcoin ETFs in the United States has had a considerable impact on the crypto market, leading to an exodus of capital not only from European ETPs but also from Canadian ones. The four largest European Bitcoin ETPs have experienced significant capital outflows since the launch of American Bitcoin ETFs. This massive reallocation is just a reflection of a growing preference for financial products based in the United States, potentially offering more security and profitability to institutional investors.

Robinhood Discreetly Accumulates Billions of Shiba Inu

Robinhood, the well-known trading platform, has significantly increased its reserves of Shiba Inu (SHIB), the memecoin inspired by Dogecoin. According to blockchain analyses by Arkham Intelligence, Robinhood has acquired about 230 billion SHIB tokens, worth a total of 350 million dollars, in the last 24 hours. This massive accumulation comes as SHIB is going through a rough patch, having lost more than 50% of its value since its all-time high in October 2021. Despite this decline, technical signals indicate a growing interest from the “whales”, or large SHIB holders, suggesting discreet accumulation ahead of a potential bullish rally.

This accumulation strategy by Robinhood is not new, as the platform had already massively stored Dogecoins before allowing its users to trade this crypto. Robinhood’s sudden interest in Shiba Inu testifies to the growing adoption of this virtual currency, long criticized for its lack of concrete utility. With a market cap close to 5 billion dollars, SHIB ranks among the top global cryptocurrencies according to CoinMarketCap. The highly engaged Shiba Inu community continues to develop new features, such as the Shiba Inu metaverse, which could potentially energize the currency’s ecosystem.

Crypto Trends 2024: Binance Predictions

Binance Research, the research branch of the crypto exchange Binance, has published a report detailing the key trends that it believes will mark the year 2024 in the world of cryptocurrencies. The report highlights Bitcoin (BTC) as a central element and emphasizes developments such as NFT Ordinals, BRC-20 tokens, and the imminent halving event. Binance considers Bitcoin as a “legitimate asset” that has gained considerable recognition in 2023, and expects this momentum to continue in 2024, spurred in particular by the recent approval of Bitcoin Spot ETFs.

In addition to Bitcoin, Binance Research’s report identifies several other crypto market segments that are expected to see significant growth. Among them, the institutional adoption of crypto is highlighted, with the entry of traditional financial giants such as BlackRock and Fidelity into the crypto space. Other areas such as the integration of artificial intelligence (AI) in crypto, the tokenization of real-world assets (RWA), and the on-chain liquidity segment are also seen as having strong growth potential in 2024. The report also mentions decentralized physical network infrastructure (DePin) and decentralized social media, as well as account abstraction, as promising areas for the coming year.

USDT, the Favored Tool of Scammers According to the UN

According to a United Nations report, the stablecoin USDT (Tether) has become a favored tool for scammers, especially in money laundering operations. The report underlines that USDT offers a discreet and difficult to trace method for quickly recycling large sums of dirty money. This situation is particularly concerning in Southeast Asia, where USDT is used in large-scale scams, including “pig butchering” type frauds. These scams involve seducing a victim on social media before extracting significant amounts of money. The scammers then use USDT to conceal the fraudulent origin of the funds, taking advantage of the speed of transfers and the difficulty of tracking transactions on the blockchain.

The report also points out the features of USDT that make it attractive for criminal activities. As the world’s largest stablecoin by market cap, with high liquidity and widespread adoption, this crypto is easily exchangeable and transferable in large quantities without leaving a clear trace. Moreover, the governance of USDT is criticized for its lack of transparency, which benefits criminals.

Solana Prepares a New Version of the Saga Smartphone

Solana Mobile plans to launch a new version of its Saga smartphone. This decision follows the first generation phone’s dismal sales performance, with only 2,200 units sold, far below the expected 25,000. The Saga smartphone, designed for Web3 and running on Android, failed to meet expectations despite its initial price tag of 1,000 dollars. In response to this disappointing performance, Solana Mobile is considering launching a second smartphone with similar core features to the first generation but at a lower price and with different hardware.

The new Solana smartphone will differentiate from its predecessor with several advantages, including an integrated crypto wallet, custom Android software, and a dApp store featuring crypto applications. The first version of the Saga has seen its price reduced to boost sales, and despite this, the phone has enjoyed some popularity on platforms like eBay, where it has been traded for up to 5,400 dollars. Solana Mobile hopes that this new version, with its improvements and more affordable price, will attract more users and strengthen Solana’s presence in the blockchain-oriented smartphone ecosystem.

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