Crypto: A high-flying week between gains, regulations and strategies

This week in the world of cryptocurrencies was marked by a series of significant events. From Bitcoin crossing important thresholds to the entry of financial giants into the cryptocurrency space, including regulatory debates and bold predictions, the news has been rich and varied. Let’s dive into the details of this news to better understand the current and future dynamics of the crypto world.

Bitcoin: 83% of users profit

Bitcoin (BTC) recently crossed an important threshold, surpassing $35,000, a major resistance. This rise has had a positive impact on Bitcoin holders, with around 83% of them making profits. This figure was highlighted by crypto analyst Plan B, who shared a chart showing the proportion of BTC holders in profit. Although the chart does not detail exact profit margins, it clearly indicates that investments in Bitcoin have generally been profitable since its launch in 2008, with profits never falling below 60%. However, despite this upward trend, the Bitcoin market remains extremely volatile.

EU adopts anti-Smart Contracts law

The European Parliament recently approved a data law that includes a controversial clause potentially unfavorable to smart contracts. This law, which is still awaiting approval from the European Council, has caused concern within the crypto community. Indeed, the new data sharing law could classify certain smart contracts as illegal, raising concerns about the future of these technologies in the EU. Smart contracts are essential in the blockchain and cryptocurrency ecosystem, providing a high level of transparency and security in transactions.

JP Morgan tempers the euphoria

As the crypto market shows signs of recovery, with Bitcoin (BTC) crossing the $35,000 mark, JP Morgan is taking a cautious stance, tempering general enthusiasm. American bank analysts express skepticism about the sustainability of this upward trend. They point to two main factors to justify their caution: the impact of the potential approval of a spot Bitcoin ETF and the regulatory outlook. Regarding the Bitcoin ETF, JP Morgan suggests that rather than attracting new capital, it could simply redirect existing funds. As for regulation, analysts believe that recent legal developments, such as the cases against Ripple and Grayscale, do not necessarily mean a relaxation of regulatory oversight, especially in light of the FTX fraud.

BlackRock commits to Ethereum ETF

BlackRock, the world’s largest asset manager, is preparing an ETF (Exchange-Traded Fund) based on Ethereum, marking a potentially revolutionary shift for cryptos. This ETF will allow investors to access Ethereum without directly holding the cryptocurrency. This initiative by BlackRock, which manages more than $10 trillion in assets, could significantly increase institutional adoption of Ethereum. The announcement comes after BlackRock launched a private Bitcoin fund for its US clients, highlighting financial institutions’ growing interest in cryptocurrencies. Read the full article

MicroStrategy reaps 1.1 billion profits on Bitcoin

MicroStrategy, under the leadership of Michael Saylor, recorded an unrealized profit of $1.1 billion on its Bitcoin investments. The company purchased bitcoins at an average price of $29,857, and with the recent rise in the price of Bitcoin to over $37,000, it confirms its position as a global leader in bitcoin investing. Despite losing $2.23 billion in August 2023 due to market fluctuations, MicroStrategy’s long-term strategy appears to be paying off, demonstrating Bitcoin’s potential to outperform traditional assets. Read the full article

Peter Schiff predicts a Bitcoin crash: Skepticism or reality?

Economist and noted Bitcoin skeptic Peter Schiff predicts an imminent crash for the cryptocurrency. According to him, the speculative interest around the new Spot Bitcoin ETFs could lead to a drop in prices once these ETFs are launched and current speculators sell for profits. Schiff, despite his loss of credibility within the crypto community, raises arguments that might make sense, notably regarding the potential impact of Bitcoin ETFs and the upcoming Halving in 2024. Read the full article

Solana (SOL) hits new highs

Solana’s native cryptocurrency, SOL, saw a dramatic rise, reaching $54, an increase of 20%. This performance follows the announcement of the continued sale of SOL tokens by FTX, despite fears related to sales limits as part of the liquidation of the exchange’s assets. The increase in Solana dApp deposits and the growth in the number of active SOL addresses also contribute to this rise. This positive trend for SOL suggests growing interest in the Solana blockchain compared to Ethereum.

This is the main thing to remember for this week. But if you want a more detailed recap and in-depth analysis straight to your inbox, feel free to subscribe to our weekly newsletter.