Weekly Update: Last week was quite busy in the world of crypto — developments that have set investors and enthusiasts buzzing. The index tracked crypto-market sentiment, which dropped by 13.5% weekly, as major cryptocurrencies like Bitcoin and Ethereum showed mixed performance last week. Bitcoin rose marginally around $63,815.51 per coin and Ethereum near $2,620.271. But, the most activity occurred in the altcoin sector as coins such as Solana, and Shiba Inu jumped to double-digit percentage gains with over 13%. However, there was one silver lining when in the US, PayPal announced they were allowing business clients to buy, hold, and sell cryptocurrencies making it a bullish signal number. The crypto market continues to be as unpredictable as it has ever been with so many changes and turning points.
Let’s dive into the details below to understand more about what happened and how it may relate to the future of digital assets.
1. Regulatory News
The crypto news cycle this week was dominated by regulatory stories. The lack of regulation has seen the US Securities and Exchange Commission (SEC) Chair Gary Gensler come under criticism in a congressional hearing. They slammed his strategy in overseeing crypto handling within the U.S.calling him the most “destructive” chair among every sort of SEC. It underscores the ongoing tension between regulators and the crypto sector.
2. Market Wrap
Bitcoin Reclaims $60K, Ready for Next Bull Run. The progress was due to an increase in good news, such as the interest of big giants in the crypto market. But volatility was also on full display, however with some altcoins declining heavily.
3. DeFi and Blockchain News
The Bankroll Status platform was hacked and over $230,000 was stolen. And for good measure, Vitalik Buterin even lauded the Celo blockchain for having more daily active addresses of stablecoins than Tron itself. This approval highlights the increasing relevance of stablecoins in DeFi.
4. Corporate moves
PayPal says US business owners can buy, hold, and sell cryptocurrencies across its networks. The action is set to promote more mainstream business adoption of digital assets. BlackRock IBIT options pulled in massive inflows which indicates a growing interest from the institutional side.
5. The Bitcoin Price Target
Crypto analysts have set a new price target for Bitcoin which is at $78,000 driven by the Chinese stimulus package. This analysis is based on the expectation that the stimulus will boost the market liquidity and investors’ confidence.
6. ETH and Web3
An ETHMilan 2024, the biggest Ethereum and Web3 conference in Italy occurred this week demonstrating the most recent advances in the Ethereum ecosystem. Topics at the summit focused on Layer 2s, DeFi, and what’s next for “Web3.”
6. Open AI’s Account Hacked
There have been multiple security difficulties in the crypto realm this week. The fifth security breach in 20 months occurred after the hacking of OpenAI’s press account. In addition, a weakness in the Banana Gun trading bot was responsible for a loss of $3 million. These cases reinforce the necessity of strong security implementations in the crypto market.
8. Adoption and Innovation
The Philippine government started an initiative to make the youth aware of blockchain and NFTs. The focus of this program is to provide the knowledge and skills needed to engage in the digital economy for the next generation. At the same time, the release of BitSNARK ZK verification for the Bitcoin blockchain makes the promise of improved privacy for transactional data.
Weekly Analysis: Most Successful and Failing Coins
Top Performing Coins:
Bitcoin (BTC):
Chart of Bitcoin, Source: Coinmarketcap
The strong recovery is clear as Bitcoin has regained the $60,000 level. The reason is clear Positive investor sentiment along with institutional attention, largely from BlackRock’s IBIT options.
Celo (CELO):
Chart of CELO, Source: Coinmarketcap
CELO has surpassed Tron in the daily number of active addresses for stablecoins.
This is due to the Validation from Vitalik Buterin and continual progress in the Celo ecosystem.
Solana (SOL):
Chart of Solana, Source: Coinmarketcap
Solana has proven continuing resilience due to market volatility. The reason for price hype is due to the Strong development activity alongside ecosystem progress.
Underperforming Coins of the week:
Terra (LUNA):
Chart of LUNA, Source: Coinmarketcap
Performance: Faced major declines in the course of bankruptcy wind-down.
Reason: Doubt regarding the future of its products and services1.
Shiba Inu (SHIB):
Chart of Shiba Inu, Source: Coinmarketcap
Performance: Suffered a pronounced drop in value.
Reason: Market adjustment and the profits taken by investors.
Dogecoin (DOGE):
Chart of Dogecoin, Source: Coinmarketcap
Performance: Faced difficulty in preserving its price ranges.
Reason: The deficiency of major news or developments to push demand.
Wrap up with my thoughts
This week in crypto was defined by vital regulatory changes, market fluctuations, and corporate communications. Key messages came from Bitcoin recovering and the rising role of stablecoins in decentralized finance. Being aware and informed is key to correctly navigating through the continually changing world of cryptocurrencies.