📉 Record outflow for Bitcoin ETFs: The storm in the crypto market continues
Welcome to the Daily Tribune of Saturday, December 21, 2024 ☕️
Hello Cointribe! 🚀
Today is Saturday, December 21, 2024, and like every day from Tuesday to Saturday, we summarize the news from the last 24 hours that you shouldn’t miss!
But first…
✍️ Cartoon of the day:
24h crypto recap! ⏱
🌍 The Bitcoin Reserve Act: A historic turning point for Bitcoin?
The Bitcoin Reserve Act, proposed by U.S. Senator Cynthia Lummis, could transform Bitcoin's role in the global economy. This bill plans for the acquisition of one million Bitcoins by the United States over five years, aiming to recognize it as a strategic national reserve asset. Inspired by international geopolitical and economic dynamics, this initiative, supported by elected President Donald Trump, is already resonating in other nations, ready to build their own Bitcoin reserves, paving the way for global adoption. Experts anticipate that this move could reduce market volatility and challenge the infamous four-year cycles dominated by halving, heralding a new era for cryptocurrencies.
✅ The SEC approves Bitcoin-Ethereum ETFs
The SEC has greenlit the first ETFs combining Bitcoin and Ethereum, developed by Hashdex and Franklin Templeton, marking a significant advance for institutional access to cryptocurrencies. These ETFs will allow investors to access the two main cryptos more easily through regulated products, reinforcing their legitimacy in traditional financial markets. While Bitcoin and Ethereum have recently faced significant volatility, this approval is seen as an encouraging signal. Meanwhile, analysts expect this momentum could extend to other digital assets like Litecoin. However, uncertainties remain around other cryptos like Solana and XRP, still within a regulatory gray area.
💸 Bitcoin ETFs experience a record outflow of $671.9 million
The cryptocurrency market has been shaken in recent hours by a massive outflow from Bitcoin ETF funds, reaching a historic record of $671.9 million in a single day. Marked by major withdrawals from the Fidelity Bitcoin ETF ($208.6 million) and Grayscale Mini ($188.6 million), this situation coincides with a notable decline in Bitcoin’s price, which has fallen to around $95,500. Despite these turbulences, some experts view these movements as potential opportunities for investors.
💵 Binance.US relaunching USD services in 2025: A new era for the platform?
Binance.US has announced the resumption of its USD services for early 2025, marking the end of a suspension imposed in 2023 after SEC lawsuits. The interim CEO, Norman Reed, emphasized that the platform is preparing for this relaunch with strategic partnerships, infrastructure improvements, and innovative custody solutions. This announcement comes as Binance continues to demonstrate its resilience, with record asset flows and a market capitalization of $154.9 billion in November 2024. The return of USD services could not only strengthen Binance.US's position in the U.S. market but also boost user confidence and attract new investors in a context of heightened regulation.
The crypto of the day: Injective (INJ)
Injective is a blockchain built on the Cosmos ecosystem and geared towards decentralized finance (DeFi). It stands out for its innovative features, such as the native integration of DeFi applications, advanced inter-chain interoperability, and an efficient Proof of Stake (PoS) consensus-based model. These characteristics help reduce costs and increase transaction efficiency while promoting the adoption of use cases like the tokenization of real assets.
The native token of Injective, INJ, is at the core of the ecosystem. It is used to pay transaction fees, secure the network through staking, and govern protocol decisions through active participation by holders. INJ has been distributed through a combination of public sale, developer allocations, and community incentives. Benefits include rewards for stakers and privileged access to high-performing and gas-efficient DeFi applications.
Recent performances
Current Price: €20.17
Percentage Increase/Decrease: +16.12% (increase over 1 day)
Market Capitalization: €2.07 billion
Rank on CoinMarketCap: #59
Why Ethereum could become more attractive than ever?
Ethereum is preparing for a major transformation with an intense debate over increasing gas limits. Currently, 10% of validators support this initiative, a significant jump from 1% previously. Figures like Eric Connor advocate for a ceiling of 40 million, while others, like Justin Drake, recommend a more cautious approach at 36 million. The goal is clear: to reduce transaction fees by 15% to 33%, making Ethereum more competitive and accessible for developers and users. Such an evolution promises to accelerate transactions, improve user experience, and enable the deployment of resource-intensive applications. However, this project raises concerns, particularly regarding the stability and security of the network.
The "Pump The Gas" initiative reflects a desire for rapid innovation but comes with significant risks. Excessive increases in gas limits could undermine the decentralization of the network, making validation difficult for small node operators and favoring centralized structures. This issue highlights a tension between progress and caution: a rapid increase could lead to network overload, while stagnation could limit the adoption of applications and harm end users. Project advocates insist on a controlled progression to avoid unforeseen consequences and maintain the balance of the ecosystem.
Finally, this record drop in gas fees could have repercussions on Ethereum's economic dynamics. By reducing transaction costs, the amount of ETH burned decreases, which could affect its scarcity and, by extension, its price. While this represents a unique opportunity to enhance the attractiveness and competitiveness of the network, developers and investors will have to juggle these new challenges in an ever-evolving crypto market. Ethereum is at a critical turning point, balancing bold innovation and calculated risks.
