- It was a roller coaster of a week for the crypto market as Bitcoin pumped from $64,000 to $68,500, only to return to $64,000 on Wednesday.
- The first spot Ethereum ETFs launched on the U.S. market, marking another historic development for digital assets on the road to widespread institutional adoption.
- Rumors about a push to make Bitcoin a reserve asset for the U.S. government circulated through the cryptosphere, with many analysts now saying it's only a matter of time.
Market Overview
It was a roller coaster of a week for the cryptocurrency market as prices pumped higher ahead of the launch of spot Ethereum (ETH) exchanged-traded funds, only to fall back to where they were last Friday in a ‘sell-the-news’ type of environment.
Tuesday marked another historic day for digital assets in 2024 as eight Ether ETFs launched on the U.S. market, pulling in $106.6 million on their first day and seeing $1 billion in trading volume. Leading the pack was BlackRock’s IShares Ethereum Trust (ETHA), which pulled in $266.5 million on its first day of trading, followed by a haul of $204 million for the Bitwise Ethereum ETF (ETHW).
However, the fact that the SEC gave the ETFs conditional approval back in May meant the development was largely expected and priced in, to the reaction by the market was muted, and prices slid lower in the aftermath.
After pumping from support at $64,000 last Friday to a high near $68,500 on Monday, Bitcoin slid lower throughout the week, returning to support near $64,000 late on Wednesday. On Thursday…
At the time of writing, the total cryptocurrency market cap stands at $2.34 trillion, an increase of 10.7% over the past week. The DeFi market cap currently stands at $97.7 billion with a 24-hour trading volume of $4.06 billion, which is 6.27% of the total crypto market volume.
Crypto News
Cars on the Blockchain – Japanese automotive giant Toyota announced it is exploring the adoption of the Ethereum Network to host vehicle Mobility-Oriented Accounts (MOA), which would create digital accounts for cars and possibly enable autonomous driving in the future. Introducing vehicle mobility onto public blockchains enables tokenizing rights, enabling a car to function as a completely independent service entity. Additional benefits include improvements to programmability and a standard interface that connects to various services. “The most extreme scenario suggested by these features is fully autonomous driving in the future,” the company said. “Autonomous mobility, which no longer requires human operation, can function as a completely independent service entity, with all rights being handled in the on-chain world.”
Ferrari’s, Not Lambos – Ferrari announced that it plans to expand its cryptocurrency payment system to Europe following a successful launch in the U.S., allowing European car dealers to accept crypto payments beginning at the end of July. “By the end of 2024, Ferrari will expand cryptocurrency transactions to other countries in its international dealer network, where cryptocurrencies are legally accepted,” the company wrote in a press release. To enable the new payment method, Ferrari is “leveraging the expertise of various companies active in the cryptocurrency payment sector to ensure transaction security.” The new system will allow for the verification of the source of funds, protect transactions from price fluctuations related to exchange rates, and convert payments into traditional currencies upon receipt, allowing dealers to accept payments without the need to manage cryptocurrencies directly.
And in the World of Politics and Digital Assets…
Rebuilding Bridges – U.S. Vice President Kamala Harris is looking to rehabilitate the image of Democrats in the eyes of cryptocurrency voters as she was reportedly in talks to speak at the Bitcoin 2024 conference in Nashville this week, joining a line-up that already includes presidential candidates Donald Trump and Robert F. Kennedy Jr. The talks fell through, with many analysts noting that it would have likely been a hostile environment for the presidential hopeful following years of anti-crypto actions from the Biden-Harris administration. Amid the pushback from crypto fans, Harris received support from an unexpected source – crypto proponent and entrepreneur Mark Cuban – who mentioned that Harris’ team had reached out to him with questions about cryptocurrency. Cuban said the feedback he has received suggests that “she will be far more open to business, AI, crypto, and government as a service.”
Reserve Asset – Rumors are circulating that Presidential candidate Donald Trump could use his speech at the upcoming Bitcoin 2024 conference to announce plans to make Bitcoin a strategic reserve asset, a move that analysts say would be difficult, but not impossible. The Department of Justice currently holds around 200,000 BTC, making the U.S. government one of the largest Bitcoin holders. It’s possible that the Department of Justice could transfer its Bitcoin holdings to the U.S. Treasury, allowing the department to begin accumulating and holding the asset long term. Trump’s recent pro-crypto pivot, including his choice of a 39-year-old Bitcoin holder JD Vance for Vice President, has helped fuel speculation that his second term in office could mean a new era for crypto, in which Bitcoin becomes fully integrated into the current financial system.
Make it Official – Senator Cynthia Lummis (R-WY) said she is crafting new legislation that would require the Federal Reserve to hold some Bitcoin as a strategic reserve asset and plans to unveil the new bill at the Bitcoin 2024 conference. Sources close to Lummis said she plans to have the legislation ready to present on Saturday, just before Presidential candidate Donald Trump is scheduled to speak, and they hope that Trump will endorse the bill. The plan is not finalized, however, and sources acknowledged that the announcement could be delayed. If successful, this move would mark a significant shift in U.S. monetary policy, aligning Bitcoin with traditional reserves like gold and foreign currencies. While the bill’s details remain closely guarded, insiders revealed it directs the Fed to incorporate Bitcoin into its reserves to enhance the stability of the U.S. dollar.
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