Between revolutionary announcements, technological developments and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovation and a field of regulatory and economic battles. Here is a summary of the most significant news of the past week around Bitcoin, Ethereum, Binance and Solana, and Ripple.
Bitcoin: Profitable addresses in free fall
The Bitcoin market has seen a notable drop in profitable addresses over the course of 2024. At the start of the year, approximately 92% of Bitcoin addresses were profitable, peaking at 100% in March 2024 when the Bitcoin price crossed $70,000. However, following the April 2024 halving, this trend reversed, and the percentage of profitable addresses dropped to 80% in August. This decline reflects the inherent volatility of Bitcoin market cycles, exacerbated by increased selling pressure as the Bitcoin price fell below $55,000. Analysis of past cycles shows that this type of fluctuation is not unusual, as the Bitcoin market has previously experienced periods of high profitability followed by significant corrections. This current trend is therefore consistent with the cyclical pattern observed historically, where growth phases are often followed by periods of correction.
Ripple faces SEC fine with serious consequences
On August 7, 2024, Ripple was ordered by a federal judge to pay $125 million in civil penalties, ending a long legal battle with the SEC. The ruling stems from allegations that it sold unregistered securities in the form of XRP, a case that began in December 2020. Judge Analisa Torres ruled that Ripple violated federal securities laws by selling XRP directly to institutional investors, while exempting sales of XRP on secondary markets. While the fine was much lower than the billions initially sought by the SEC, the ruling does not mark the end of Ripple’s challenges. The possibility of an appeal by the SEC still looms, which could prolong the legal uncertainty surrounding the company.
Putin signs legalization of crypto mining in Russia
Russian President Vladimir Putin has signed a landmark law legalizing Bitcoin and other crypto mining in Russia. The law allows Russian companies and registered individual entrepreneurs to mine digital assets, with some restrictions on energy consumption for unregistered individuals. The legislative framework also introduces new concepts such as mining pools and digital currency mining. Legalizing crypto mining could strengthen Russia’s position in the international crypto arena, allowing it to compete with established regions like the United States in terms of hashrate. The current economic climate, marked by Western sanctions in response to the invasion of Ukraine, has pushed Russia to explore Bitcoin and other crypto as an alternative to circumventing these sanctions. The new legislation could also pave the way for financial products such as crypto ETFs and strengthen the cryptocurrency industry in Russia.
$1.7 Billion in Bitcoin Leaves Crypto Exchanges
Over the past week, a massive withdrawal of 28,000 BTC, equivalent to $1.7 billion, has been observed on crypto exchanges. This movement represents the largest outflow of Bitcoin from exchanges this year, and is interpreted as a deliberate strategy by large investors, known as “whales,” to secure their assets away from centralized platforms. This withdrawal could signal anticipation of a future rise in the price of Bitcoin, a precaution against market volatility, or a response to growing regulatory uncertainties. The withdrawal of these Bitcoins reduces the liquidity available in the markets, creating a potential shortage of supply that could exacerbate price fluctuations in the event of increased demand. This movement could also reflect renewed confidence in the long-term potential of Bitcoin, as investors seek to protect their holdings from the risks associated with centralized exchanges.
First Solana ETF Approved in Brazil: A Major Step Forward
Brazil has approved the first-ever Solana (SOL)-based ETF, marking a major milestone for crypto adoption by traditional financial institutions. The ETF, managed by QR Asset Management and overseen by Vortx, uses the CME CF’s dollar reference rates for Solana, providing a new secure investment opportunity for investors. The approval is part of a broader strategy to position Brazil as a global leader in regulated cryptocurrency investments, solidifying its role in the global market. However, while the approval has sparked some optimism, the Solana market remains volatile, with recent price fluctuations and notable selling pressure. As with Bitcoin ETFs, the success of this ETF will depend on Solana’s future performance and the market’s response to the new dynamics introduced by this investment.
That's the bottom line for this week. But if you want a more detailed recap and in-depth analysis delivered straight to your inbox, feel free to sign up. to subscribe to our weekly newsletter.
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