Bitcoin’s big returns during the week, which took it above $46,000, remain the most important development in this weekly crypto recap, while other regulatory events also made the news.
Bitcoin’s sharp recovery during the week drastically improved sentiments in the crypto market this week. On February 5, Bitcoin traded a little over $42,500 with stable yet muted movements. Its trajectory gradually rose over the week, impacting the overall crypto outlook. Finally, by the end of the week, the overall crypto returns for the week surged much higher than last week.
The global crypto market cap got a boost from the big weekly crypto returns. It has gone above $1.7 trillion, while BTC is alone inching closer to $1 trillion. If macroeconomic events don’t deter its rise, BTC could soon breach $ 50,000 before the BTC halving event.
Meanwhile, crypto analysts lauded the massive inflows recorded by the spot Bitcoin ETF this week. The Blackrock IBIT spot ETF became the fund with the largest assets within a month of launching. Blackrock and Fidelity’s ETFs held over $3 billion of assets within the month. As a result, the two have become the largest ETF debuts in the US in thirty years. In January, the two ETFs beat most market funds in the US.
Darin Feinstein, founder of crypto firm Core Scientific, echoed similar sentiments regarding the general crypto outlook. He said, “A Bitcoin ETF proves via the Bitcoin network that it holds the Bitcoin – that’s a much safer investment, in my opinion, than investing in any other ETF, such as a gold ETF, where you have no way to know on a real-time basis if its really holding the gold or if it’s been authenticated.”
South Korean officials also announced they would meet the US SEC head this week to discuss the spot Bitcoin ETFs.
Meanwhile, the crypto and blockchain sector witnessed multiple regulatory developments this week. The US was in the spotlight as Treasury Secretary Janet Yellen affirmed the potential of stablecoin regulation. She urged the US Congress to create appropriate regulations for the crypto and blockchain sector and empower regulators.
Canada has also emerged as a hub for crypto and blockchain in North America. Startups in the sector attracted the highest fintech investments in 2023, leading to optimism for the space. The numbers are positive for the sector even when general funding in the fintech space has decreased considerably.
Stablecoin firm Tether also announced the launch of a blockchain educational initiative. The education program could be highly influential in promoting crypto adoption in the near future.
Let’s sum up the weekly crypto recap with the best-performing tokens for the week:
On the other hand, these crypto tokens suffered the highest losses:
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