Record Volumes for Bitcoin ETFs 📈
Welcome to the Daily Tribune, Thursday, January 18, 2024 ☕️
Hello Cointribe! 🚀
Today is Thursday, January 18, 2024, and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24-hour crypto summary ! ⏱️
🚀 The rapid rise of Bitcoin ETFs: Astronomical trading volumes
Bitcoin Exchange Traded Funds (ETFs), launched by financial giants such as BlackRock, Fidelity, Ark Invest, and others, are experiencing resounding success with phenomenal trading volumes. These ETFs generated trading volumes of ten billion dollars during the first three days of trading, far surpassing the combined volumes of the 500 ETFs launched in 2023. This remarkable performance is highlighted by analyst Eric Balchunas, who notes that these volumes represent seven times more than those of all ETFs launched the previous year. Bitcoin ETFs have accumulated over 30,000 BTC, with notable holdings by Fidelity (9,750 BTC), BlackRock (11,439 BTC), Bitwise (5,540 BTC), Ark 21 shares (2,535 BTC), Vaneck (1,867 BTC), and Invesco (1,151 BTC).
However, the rise of Bitcoin ETFs raises questions about their impact on the Bitcoin market. There is a discrepancy between the high volumes of ETFs and the relative stability of the Bitcoin price. This situation is attributed to the transfer of clients from the GBTC trust by Grayscale to the new ETFs, which involves selling their bitcoins for dollars, exerting downward pressure on the market. Despite significant net inflows into the ETFs, the fund managers already held bitcoins, suggesting that they did not have to buy large quantities of bitcoins to meet demand. The impact on the price of Bitcoin is expected to manifest gradually as ETF managers are compelled to buy bitcoins to meet increasing demand. This dynamic indicates significant upside potential for Bitcoin in the future.
The massive entry of institutional capital could indeed bring increased liquidity, but it also exposes the market to complex financial dynamics and systemic risks typical of traditional markets.
💶 The ECB and Bitcoin: Unlikely to Acquire
The European Central Bank (ECB) recently clarified its position on Bitcoin, stating that it is highly unlikely to acquire this cryptocurrency. This statement was made during a question and answer session on Twitter by Isabel Schnabel, a member of the ECB's executive board. This position contrasts with the growing interest in Bitcoin in the United States, particularly following the acceptance of a Bitcoin ETF by the SEC. The ECB had previously predicted a lasting decrease in the value of Bitcoin, but despite these forecasts, the price of Bitcoin quickly rose, surpassing $40,000.
The ECB emphasizes the fundamental differences between the euro and Bitcoin. The euro is a recognized currency with legal tender, while Bitcoin is the result of a private initiative and is experiencing slow but steady adoption. Bitcoin is limited to 21 million units, a characteristic that brings it closer to gold, often seen as a digital replica of the precious metal. On the other hand, the euro is inflationary by design, a tool for financing public policies through debt. The ECB reminds that the digital euro is a public currency issued directly by it, unlike Bitcoin, which it qualifies as a speculative asset that does not fulfill the characteristics of money. The question of adding Bitcoin to central bank balance sheets remains open, especially with the growing interest in this cryptocurrency as an alternative to gold.
The ECB's position on Bitcoin reflects a cautious and conservative approach to disruptive financial innovation. This reluctance highlights the tension between the monetary stability sought by central banks and the disruptive potential of cryptocurrencies. While Bitcoin is seen by some as an alternative store of value, the ECB maintains a clear distinction between centralized digital currencies and decentralized cryptocurrencies, highlighting regulatory challenges and divergent approaches among different global jurisdictions.
💼 Cantor Fitzgerald CEO Assures Tether's Stability
Tether, the issuer of the stablecoin USDT, has recently been defended by Howard Lutnick, CEO of Cantor Fitzgerald, one of the largest brokerage firms for Wall Street traders. Lutnick stated that Tether actually holds the $95 billion in assets it claims to possess. This statement comes at a time when Tether is facing several challenges, including accusations of money laundering facilitation by the UN and a lack of trust within the crypto community. Lutnick, in an interview with Bloomberg TV, responded to a question about the veracity of Tether's assets by affirming that he manages a large portion of their assets and has seen that they do indeed possess the money they claim to have. This statement from a figure of Wall Street could help dispel doubts about Tether's reserves, although an official audit is still awaited.
The importance of an official audit for Tether is highlighted by the growing popularity of reserve proof in the cryptocurrency sector, particularly after the fall of FTX in November 2022. Users and investors seek guarantees to avoid similar situations. So far, Tether has only published attestation reports, the latest in September indicating asset reserves of $86.4 billion and liabilities of $83.2 billion. The need for an official audit remains crucial to establish lasting trust in the stable cryptocurrency. For example, Binance has responded to this demand by engaging a designated auditor, the Mazars Group, to strengthen transparency and trust in its operations.
The defense of Tether by a figure from Wall Street highlights a paradox: while cryptocurrencies seek to break free from traditional financial systems, they remain dependent on the trust and validation of these same systems to gain legitimacy.
🔗 Ethereum Cancun-Deneb: A Successful Hard Fork on Goerli
On January 17, 2024, Ethereum achieved an important milestone with the successful deployment of the Cancun-Deneb hard fork on the Goerli testnet. Although the process encountered some initial technical difficulties, including synchronization issues for some nodes at the time of the fork, developers quickly deployed a fix. As a result, validators managed to synchronize their systems, allowing for a successful update across the entire Goerli chain in four hours. This success is considered a crucial step before deploying the fork on the Ethereum mainnet. The next steps include deploying Cancun-Deneb on the Sepolia testnet on January 31, and then on Holesky in early February. If these tests go smoothly, the update could be implemented on the Ethereum mainnet shortly after, potentially as early as February 2024.
The Cancun-Deneb hard fork is particularly anticipated for the advancements it promises, especially for Ethereum layer 2 (L2) solutions such as rollups. One of the main innovations of this update is the introduction of EIP 4844, also known as Proto-Danksharding. This EIP allows for the use of \"blob transactions,\" a new type of transaction designed for efficient storage of large volumes of data. These transactions will be crucial to enable L2 solutions to store on the Ethereum chain the data related to transactions conducted on the layer 2. In practice, this novelty could significantly enhance the performance of L2 solutions and greatly reduce the costs of publishing transactions from L2 to the Ethereum mainchain.
The success of the Cancun-Deneb hard fork on Goerli is an important milestone for Ethereum, signaling a major breakthrough in addressing scalability and cost issues. This update is crucial not only for the development of Ethereum but also for the entire dApps and FinTech ecosystem. By improving performance and reducing costs, Ethereum positions itself as a pillar for innovation in decentralized financial services, paving the way for wider adoption of blockchain in various commercial and financial applications.
Crypto of the day: Myro (MYRO)
Myro (MYRO) is a unique cryptocurrency inspired by Raj Gokal's dog, co-founder of Solana. This project responds to the popular demand for dog-based narratives in the crypto space. Myro is more than just a cryptocurrency; it is a movement aiming to make the Solana ecosystem more inclusive and welcoming. The main utility of Myro is to provide added value to the Solana ecosystem, with unique use cases and utilities that contribute to Solana's long-term growth. MYRO holders benefit from this affiliation with Solana, potentially enjoying the speed, security, and low transaction costs of the Solana blockchain. Myro can be purchased in various ways, including through decentralized exchanges like Jupiter, using wallets like Phantom, and is also accessible on multiple chains through cross-chain swaps.
Recent Performance of Myro (MYRO)
Current Price: Approximately 0.2053 EUR
Percentage Increase/Decrease: 55.86% increase in the last 24 hours
Market Cap: Approximately 193,860,371 EUR
Rank on CoinMarketCap: 230th
Crypto Analysis of the day: Solana (SOL)
Let's dive into the analysis we published this morning on Solana (SOL). After reaching a new annual high at $126, SOL has entered a corrective phase.
Currently, SOL is trading around $100, maintaining above its 50-day and 200-day moving averages. This is a positive sign, indicating a bullish trend. However, a divergence between oscillators (such as RSI and MACD) and the price of Solana could signal a weakening momentum. In simple terms, this means that even though the price appears stable, underlying indicators suggest that this stability may not last. It's like watching an athlete run a marathon; they may seem strong in the middle of the race, but if their heart rate starts fluctuating, it could indicate that they may soon slow down.
For traders and investors, the key levels to watch are $80 and $115. If SOL remains above $80, we could see a rise towards $115, or even $125 or $137. On the other hand, if SOL drops below $80, it could decline to $70, or even $60. These levels are crucial in determining Solana's future direction.
Cryptocurrencies are a dynamic field where changes can occur rapidly. As always, I encourage you to do your own research and not rely solely on technical analysis. Fundamental factors, such as market news and technological developments, also play a crucial role in price dynamics. Let's stay connected, informed, and cautious in our investment decisions.