Bitcoin hits all-time high, Ethereum fees skyrocket with memecoin mania, and is Tesla buying Bitcoin again? These stories and more, this week in crypto.
Bitcoin hits record high
Bitcoin has reached all-time highs in a volatile week trade; first on Tuesday touching just over $69,200 before a sharp 10% drop. But by the end of the week, Bitcoin had recovered, then briefly surpassed $70,000 for the first time. Billions have been invested in Bitcoin ETFs, and anticipation of the next halving event continues to fuel investor enthusiasm. In the meantime, The ether has struck $4,000 for the first time in over two years, propelled by growing speculation surrounding Ether spot ETFs.
Fees Skyrocket on Memecoin Mania
Memecoin mania is back as Ethereum-based meme tokens like Pepe, Shiba Inu and Floki have each more than doubled in price. Shiba Inu headed the pack, with a market capitalization exceeding $25 billion. Its growth is attributed to accelerated token burning and anticipated upgrades to the Shibarium network. The meme coin craze has led Ethereum gas fees at a nearly two-year high, which poses transfer problems.
Fomo in Asia powers Bitcoin
The recent rise in Bitcoin has been mainly fueled by Asian investors, notably from South Korea, China and Hong Kong, representing around 70% of the trade volume. Asia accounted for $800 billion of the total $1.17 trillion worth of Bitcoin traded in February. The trend reveals a significant FOMO effect in the region, also evidenced by a 12-fold increase in searches for “bitcoin” on messaging app WeChat.
Ethereum ETFs delayed
The US SEC has postponed its decisions on two new crypto products. Decision on Ethereum ETF applications delayed, launch a public consultation period, during which the agency requests opinions on whether the arguments in favor of approved Bitcoin ETFs are applicable to Ethereum and what potential risks of manipulation may arise. The SEC also postponed its decision on whether to authorize exchanges to list and trade spot bitcoin ETF options.
BlackRock to buy Bitcoin ETFs
BlackRock, the world's largest asset manager, recently updated his file with the SEC, indicating its intention to purchase Bitcoin ETFs in cash for its funds. The BlackRock Global Allocation Fund and the Strategic Income Opportunities Fund aim to generate investment returns through stocks, debt, money market securities and now, Bitcoin.
FTX settled with BlockFi
Bankrupt companies BlockFi and FTX announced an agreement to resolve their long-running legal battle. FTX will pay $874 million to BlockFi, including a $185 million customer claim against FTX.com and a $689 million claim against Alameda Research. The negotiated settlement is seen as a positive outcome, as mediation will reduce litigation costs in BlockFi's bankruptcy proceedings.
Spain stops Worldcoin project
Spain stopped crypto project Worldcoin, co-founded by OpenAI CEO Sam Altman, due to privacy concerns. The Spanish government's data protection agency has ordered Worldcoin, which provides WLD tokens in exchange for iris scans, to suspend its activities in the country for three months, highlighting the high risks to people's rights posed through the processing of sensitive biometric data.
Is Tesla Buying Bitcoin Again?
Speculation surrounds Tesla's Bitcoin holdings, such as his BTC portfolio currently holds about 11,509 bitcoins, about 1,800 more than it reported in its last earnings report. Some are anticipating the announcement of a recent Bitcoin purchase during Tesla's upcoming earnings conference call, while others are considering the possibility of an accounting error. Tesla bought $1.5 billion worth of Bitcoin in February 2021, then sold 75% of its stack in 2022.
This is what happened this week in crypto, see you next week.