Weekly News Digest for Feb 20 - 26
Market Update
Last week's cryptocurrency market showcased a blend of bullish signals and speculative optimism, with Bitcoin and Ethereum demonstrating strength amidst broader market surges. Bitcoin's technical analysis indicated a potential breakout above $52,884, supported by positive oscillator readings and bullish moving averages. Ethereum mirrored this resilience, with its price touching $3,000, buoyed by ETF speculation and the upcoming Dencun upgrade. Worldcoin's WLD token led the market with a remarkable 142.7% increase, contributing to an overall crypto market value climb to $1.96 trillion. High-profile predictions fueled the bullish sentiment, with Robert Kiyosaki forecasting Bitcoin to reach $100,000 by June, and Fundstrat's Tom Lee suggesting a $150,000 target within the year. However, the market faced minor setbacks mid-week with major coins dipping slightly, though select tokens bucked the trend. Max Keiser's warning of government intervention in Bitcoin ETFs and a potential market crash contrasted with Microstrategy's Michael Saylor and Pantera Capital's Dan Morehead expressing strong confidence in Bitcoin's superiority and a forthcoming bull market, respectively, indicating a complex but optimistic market outlook.
News of the Week
Edward Snowden, a privacy advocate and former NSA whistleblower, declared Bitcoin to be the most significant monetary advance since the creation of coinage, a statement he regards as "unpopular but true." He frequently shares his perspectives on Bitcoin, underscoring its ability to fix issues like currency devaluation and advocating for its potential in matters like SEC-approved ETFs. His remarks have stirred mixed responses, with some individuals agreeing on its potential to separate money and state, and others criticizing its traceability and lack of privacy.
Crypto funds globally experienced a record inflow of $2.45 billion last week, bringing the total AUM to $67 billion, a high not seen since December 2021. This surge in investments, led by the United States with 99% of the inflows, indicates growing investor confidence in digital assets, particularly spot-based bitcoin ETFs. While bitcoin dominated the inflows, other cryptocurrencies like ETH, AVAX, LINK, and MATIC also saw positive inflows, highlighting diverse investor sentiment across various blockchain networks.
Decentralized finance (DeFi) has seen an increase in the total value locked (TVL), surpassing $80 billion, a significant recovery since the Terra stablecoin crash in May 2022. Lido's liquid staking platform is currently the largest player in the DeFi space with a dominant $29.49 billion in TVL, primarily from ether-based liquid staking derivatives. Ethereum retains over 60% of the TVL share among 979 DeFi protocols, with Tron being the second-largest blockchain by TVL size, indicating a resurgence of confidence in the DeFi market.
Donald Trump's cryptocurrency assets have grown to over $5 million, largely due to the success of the namesake TRUMP token gifted to him by the project's developers, amounting to $2.9 million. Although initially cautious about cryptocurrencies, Trump's portfolio includes profits from several NFT card collections and over $1 million in Ethereum-based holdings. The value of Trump's crypto assets positions him as a significant holder in the market, with the TRUMP token achieving an all-time high value increase and remaining a considerable portion of his digital wealth.
Recommended by LinkedIn
The Blockchain Basics Act has been introduced in Ohio, South Carolina, and Mississippi, aiming to protect key cryptocurrency rights at the state level, such as the ability to self-custody, trade, mine, and run nodes without undue restrictions. In each state, the initiative has been spearheaded by local legislators, making for a total of seven U.S. states where similar regulations have been proposed, with Missouri having already passed them. Dennis Porter of the Satoshi Action Fund views this as a significant step for Bitcoin users' rights and freedom, amidst worries of restrictions from figures like Sen. Elizabeth Warren.
Cryptocurrency advocate John Deaton announced his bid for the Senate in Massachusetts, intending to unseat incumbent Democrat Senator Elizabeth Warren. Deaton, contrasting Warren's anti-crypto stance, promotes a crypto-friendly approach and aims to bring change to Washington, D.C. Prior to challenging Warren, Deaton needs to secure the Republican nomination against other GOP candidates.
CME Group announced the planned launch of micro euro-denominated bitcoin and ether futures on March 18, subject to regulatory approval. These contracts will allow investors to gain price exposure to one-tenth of a bitcoin or ether in euros, amplifying accessibility to cryptocurrency investments. The introduction of these products follows a notable increase in the trading volume of their U.S. dollar-based counterparts.
The People Power Party in South Korea suggested delaying the start of cryptocurrency taxation until 2027, as part of its election pledge. This proposal is due to the lack of a comprehensive regulatory framework for taxing virtual assets, despite some initial regulation being passed in the National Assembly. Additionally, the party is considering revising the taxable base amount for digital assets, which currently stands at a threshold that many believe unfairly discriminates against them compared to stock income.
In the last 17 days, the AI cryptocurrency market has seen a significant rise in value, adding $10.21 billion, coinciding with Openai's announcement of their text-to-video AI application Sora. The AI crypto sector has grown by 142.79%, with top tokens like internet computer (ICP) experiencing substantial increases in market capitalization. Other AI tokens have also displayed impressive growth, with the sector witnessing an overall exponential rise over the past year, sparking widespread enthusiasm for AI technology innovations.
Pyth Network has launched real-time price feeds for 13 bitcoin exchange-traded funds (ETFs), enhancing data access for decentralized finance (defi) developers and the broader financial communities. As a blockchain oracle, Pyth will now provide low-latency financial data to aid in the execution of complex smart contract operations on various blockchains. This initiative is a significant step in bridging the gap between decentralized finance and traditional financial networks, facilitating the development of innovative financial products.
🌟Exploring how crypto reshapes finance reminds me of Musk's drive for innovation—always pushing boundaries!💡Growth in Defi's value & market updates highlight the ever-evolving landscape. #ForwardThinking 🚀