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Between revolutionary announcements, technological developments, and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovations and a battleground of regulatory and economic struggles. Here is a summary of the most significant news from the past week regarding Bitcoin, Ethereum, Binance, Solana, and Ripple.
Bitcoin: Profitable Addresses in Freefall
The Bitcoin market experienced a notable drop in profitable addresses in 2024. At the beginning of the year, around 92% of Bitcoin addresses were profitable, reaching a peak of 100% in March 2024 when the price of Bitcoin surpassed $70,000. However, after the April 2024 halving, this trend reversed, and the percentage of profitable addresses fell to 80% in August. This decline reflects the inherent volatility of Bitcoin market cycles, exacerbated by increased selling pressure as the price of Bitcoin fell below $55,000. Analysis of past cycles shows that this type of fluctuation is not uncommon, with the Bitcoin market having previously experienced phases of high profitability followed by significant corrections. This current trend is therefore part of the historically observed cyclical pattern, where growth phases are often followed by correction periods.
Ripple vs. SEC: A Heavy Fine with 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. This decision follows accusations of selling unregistered securities in the form of XRP, a case that dates back to December 2020. Judge Analisa Torres ruled that Ripple had violated federal securities laws by selling XRP directly to institutional investors, while exempting sales of XRP on secondary markets. Despite a fine much lower than the billions initially claimed by the SEC, this decision does not mark the end of challenges for Ripple. The possibility of an SEC appeal still looms, which could prolong the legal uncertainty surrounding the company.
Putin Signs Crypto Mining Legalization in Russia
Russian President Vladimir Putin signed a historic law legalizing the mining of Bitcoin and other cryptos in Russia. This law allows Russian companies and registered individual entrepreneurs to mine digital assets, with certain energy consumption restrictions for unregistered individuals. This legislative framework also introduces new concepts such as mining pools and digital currency extraction. The legalization of crypto mining could strengthen Russia’s position on the international crypto scene, allowing it to compete with established regions like the United States in terms of hashrate. The current economic context, marked by Western sanctions in response to the invasion of Ukraine, has pushed Russia to explore Bitcoin and other cryptos as an alternative to bypass these sanctions. This 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 Leave Crypto Exchanges
In the past week, a massive withdrawal of 28,000 BTC, equivalent to $1.7 billion, was observed on crypto exchange platforms. This movement represents the largest Bitcoin outflow from exchanges this year, and is interpreted as a deliberate strategy by large investors, called “whales,” to secure their assets off centralized platforms. This withdrawal could signal anticipation of a future rise in Bitcoin price, precaution against market volatility, or a response to increasing regulatory uncertainties. The withdrawal of these Bitcoins reduces the available liquidity in the markets, creating a potential supply shortage that could exacerbate price fluctuations in the event of increased demand. This movement could also reflect renewed confidence in Bitcoin’s long-term potential, with investors seeking to protect their holdings from the risks associated with centralized exchanges.
The First Solana ETF Approved in Brazil: A Major Advancement
Brazil has approved the very first ETF based on Solana (SOL), marking a significant step for crypto adoption by traditional financial institutions. This ETF, managed by QR Asset Management and supervised by Vortx, uses CME CF dollar reference rates for Solana, providing a new secure investment opportunity for investors. This approval is part of a broader strategy to position Brazil as a global leader in regulated cryptocurrency investments, thus consolidating its role in the global market. However, although 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 key information to remember for this week. But if you want a more detailed recap and in-depth analysis directly in your inbox, feel free to subscribe to our weekly newsletter.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
