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3 Biggest Bitcoin News to Start the Week

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By Jaden Francis - - 5 Mins Read
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As we ushered in the first week of the new year, the cryptocurrency market experienced some notable developments that took it in unexpected directions.

 

Despite the optimism that characterized the end of 2021, some of the biggest stories in the crypto space were somewhat subdued during this week.

 

One of the most significant developments was the performance of spot ETFs, which failed to meet many investors' expectations.

 

Meanwhile, there was a surge in interest surrounding ether, with many speculators betting on its potential to outperform other cryptocurrencies in the near future.

 

Overall, these three news stories have profoundly impacted the market, and many investors are closely monitoring how things will unfold in the days and weeks ahead.

1. Bitcoin ETFs: The Anticlimactic Unveiling

Spot ETFs launched in the US were a significant moment for cryptocurrency. However, despite optimism surrounding the financial instruments, Bitcoin's value faced a downturn, erasing gains since December.

 

As of Friday's close, the Grayscale Bitcoin Trust (GBTC), with its head start since its launch in 2015, maintained its dominance with $23.55 billion in assets under management.

 

Even though GBTC witnessed substantial outflows, it still outshone other spot ETFs. In contrast, overall spot bitcoin ETFs in the US saw approximately $1.15 billion in net flows over six trading sessions.

 

Bloomberg analyst Eric Balchunas shared data indicating that spot ETFs, excluding GBTC, collectively hold 95,300 BTC, a value of $3.87 billion, less than half a percent of the circulating supply. GBTC, on the other hand, holds almost seven times that amount. In total, US spot ETFs account for 3.3% of the total bitcoin supply.

 

Despite these developments, the market's attention seems to be shifting towards ether. As Bitcoin grapples with price fluctuations, ether's value has risen, especially in anticipation of its suite of spot ETF applications.

2. Ether’s Ascent: A Shift in Crypto Preference

While Bitcoin faces challenges post-ETF launch, ether has emerged as a frontrunner in the crypto space. So, Ether (ETH) experienced a nearly 1.5% increase year-to-date, with an impressive 11% gain at its peak.

 

So, this upward trajectory garnered attention, leading to a rare negative correlation with Bitcoin, something that has  not been witnessed in almost three years.

 

Currently, the broader crypto market appears to be in a consolidation phase, with several major cryptocurrencies experiencing declines.

 

Notably, Solana (SOL) and XRP have witnessed drops of 20% and 16%, respectively, while BNB remains relatively stable.

 

The focus on ether and the shift in correlation dynamics raise questions about the current health of the crypto market, especially in comparison to traditional indices like the S&P 500 and Nasdaq.

3. Hong Kong to Host The Bitcoin Conference: Embracing Crypto Revolution

In a move signaling its commitment to the digital currency revolution, Hong Kong has announced its hosting of The Bitcoin Conference, set to take place on May 9-10, 2024.

 

Described as the "world's largest fintech conference," this event is poised to bring together crypto industry leaders, experts, policymakers, and activists to explore and discuss various aspects of Bitcoin offerings.

 

Johnny Ng Kit-chong, a member of the Legislative Council of Hong Kong, shared this exciting news on social media, emphasizing the city's desire to become a crypto hub.

 

The official page for The Bitcoin Conference later confirmed the dates, further solidifying Hong Kong's position as an evolving player in the crypto space.

 

One of the conference's central themes will be regulatory frameworks, aligning with recent calls from Ng to promote the implementation of spot Bitcoin ETFs in Hong Kong.

 

This move follows the SEC's approval of 11 spot Bitcoin ETFs in the United States, prompting aspirations for Hong Kong to become a leader in the virtual assets field.

The Bitcoin Halving: A Glimpse into the Future Bull Run

As the crypto community speculates on the next bull run, all eyes turn to the upcoming Bitcoin Halving in April. Analysts predict this event, occurring approximately every four years, could catalyze heightened crypto volatility and significant market movements.

 

According to Glassnode, a leading cryptocurrency analytics firm, Bitcoin Halving is only 100 days away based on the average block interval.

This event is scheduled to happen at a block height of 840,000 and is expected to affect Bitcoin's supply dynamics. The halving will reduce miners' rewards and may potentially lower distribution pressure.

 

Historically, Bitcoin's price has witnessed notable increases before and after each Halving. The last Halving in 2020 saw a 17% rise in the weeks leading up to the event and a remarkable 559% surge in the following year.

 

Analysts like Delphi Digital's Kevin Kelly and Jan3's CEO, Samson Mow, hint at the potential for the Halving to trigger the next bull run, possibly propelling Bitcoin to new all-time highs, even reaching $1 million.

 

While the impact of the Halving event is anticipated to differ from the dynamics observed post-Spot Bitcoin ETF approval, both events highlight the intricacies of crypto markets.

 

As a deflationary measure intrinsic to Bitcoin's tokenomics, the Halving is expected to exert a more fundamental influence on the cryptocurrency's price.

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