What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
For almost a year, Bitcoin has been moving within a price range around the historic 100,000 USD mark. This week, another breakout attempt failed due to a liquidation cascade. Although the price fell by only -2.25% from Sunday to Monday, heavily leveraged altcoin positions triggered forced sales worth 1.7 billion USD – the largest cascade of the year. Over the course of the week, the total value of liquidated derivative positions rose above 3 billion USD, a clear sign of over-leverage in the market. The correction follows several strong months fueled by regulatory progress in the US. Now the markets will decide whether a bottom can be found.
Bitcoin once again defends the 100.000 USD mark despite conflict in the Middle East, while Ethereum and altcoins weaken.
United Kingdom moves closer to the United States
The UK’s Financial Conduct Authority (FCA) is internationally regarded as being rather restrictive towards digital assets. But the policy shift in the US seems to be having an impact. This week, the authority announced that it would suspend certain rules for crypto firms that had previously applied to traditional financial institutions. In addition, the FCA plans to develop a new framework together with US authorities such as the SEC. The rules are scheduled to come into effect in 2026, following a public consultation. In the past, many companies had avoided the UK due to regulatory uncertainty. With a clearer yet more flexible framework, London could strengthen its role as a global hub for digital assets and regain ground in the competition with Dubai, Singapore, and the US.
UK FCA plans to ease some regulations for crypto companies to foster innovation and growth.
Digital euro by 2029
Since 2020, the European Central Bank (ECB) has been working on the project of a digital euro. Now, the central bank is intensifying its plans. According to board member Piero Cipollone, the central bank digital currency (CBDC) could become a reality by 2029 thanks to new progress. However, the idea does not meet with approval everywhere. Critics warn of full traceability by the central bank. Unlike cash, which enables anonymous transactions, a CBDC would digitally document every payment, granting authorities unprecedented insight into citizens’ consumption behavior. The consequences could be privacy risks such as targeted advertising, government surveillance, or data leaks if strict safeguards are not implemented. Thomas Moser, alternate member of the SNB’s Governing Board, explicitly warned against retail CBDCs in an interview with CVJ.CH.
The European Central Bank (ECB) is stepping up its plans to introduce a digital euro for the general public by 2029.
Bitcoin and Ethereum as loan collateral
In August 2023, Luzerner Kantonalbank (LUKB) announced as the first Swiss cantonal bank the development of a comprehensive crypto offering. Following the launches by its Zug and St. Gallen counterparts the previous winter, LUKB went live in March 2024. Over five years, the bank developed internal know-how and its own infrastructure integrated into the core banking system, available in both e-banking and mobile banking. Now, as the first universal bank in Switzerland, it enables its clients to pledge Bitcoin and Ethereum as collateral. With this service, customers can obtain liquidity without having to sell their cryptocurrencies.
As the first universal bank in Switzerland, LUKB offers the possibility to use Bitcoin and Ethereum as collateral for Lombard credits.
New competitor for Hyperliquid
In addition: The DeFi sector is growing rapidly, with new protocols aiming to bridge the gap between decentralized and centralized trading. Aster is one of them – a decentralized exchange (DEX) specializing in perpetuals and spot trading, competing with market leaders such as Hyperliquid. Its meteoric rise is mainly due to the support of the world’s largest crypto exchange, Binance. Its venture arm, YZi Labs, led the seed round and is now actively promoting the project.
What is Aster? A DeFi platform for on-chain derivatives that combines trading, security, and transparency in the crypto market.
