What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, along with engaging background reports, concisely summarized in the weekly review.
Selected articles of the week:
The regulatory status of crypto-assets has long been controversial in the United States. The regulatory authorities for securities (SEC) and commodities (CFTC) as well as other agencies are wrestling over oversight. Many industry representatives see former MIT professor Gary Gensler, whom US President Biden appointed SEC Chairman in 2021, as the main instigator of this regulatory uncertainty. One of Trump’s election promises therefore included the dismissal of the agency head. However, this will not happen. On the day of the new president’s inauguration, 20 January, Gensler will leave the SEC voluntarily. The current candidates for the head of the agency all have a positive attitude towards the crypto sector.
Starting January 20th, Chairman Gary Gensler will step down from the SEC, paving the way for a candidate from Trump’s cabinet.
Memecoins are gaining traction
Memecoins are cryptocurrencies inspired by internet memes or cultural jokes. Their price is fuelled by online communities and social media hype, while actual utility remains outside the equation. Over the past year in particular, this type of cryptocurrency has become increasingly relevant. Most new memecoin launches took place on Solana, where traders can issue tokens on platforms such as Pump.fun without any developer knowledge. This led to a significant increase in network activity.
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
Derivatives on Bitcoin ETFs
This week, after a lengthy approval process, trading in options on BlackRock’s Bitcoin ETF started on the Nasdaq. Options are financial derivatives that give investors the right, but not the obligation, to buy or sell an underlying asset at a fixed price before a certain date. They are often used to hedge risks, speculate on price movements or improve portfolio strategies. Options are particularly popular with traditional investors. For many share indices, the volumes for options are higher than the underlying products themselves. Accordingly, this product launch is significant, as the impressive figures on the first day underline.
After a long winded approval process, options on BlackRock’s Bitcoin ETF (IBIT) began trading on Nasdaq.
First signs of an ‘alt season’
Bitcoin has been rising continuously since Trump’s election victory a fortnight ago. The promise of looser regulation and lower taxes appeals to the markets. In addition, the victory coincided with a technical breakout after a six-month consolidation phase. Over the past month, the Bitcoin price has risen accordingly by almost 40%, reaching an all-time high of not quite USD 99,500. The beginnings of a rotation into alternative cryptocurrencies (‘altcoins’) are now emerging. In particular, cryptocurrencies linked to Elon Musk, who will head the government’s DOGE cost-cutting department under Trump, have benefited considerably. In addition to memecoins, older altcoins with little fundamental activity – jokingly referred to by some as ‘dinosaurs’ – also rose sharply.
After a period of consolidation, the Bitcoin price is back above the USD 63,000 mark and thus the 200-day average.
Cardano’s ecosystem is still lagging behind
In addition: Cardano is a blockchain platform that competes with Ethereum in the field of smart contracts. The network takes a research-led approach with its own consensus mechanism. However, despite some milestones, the fundamental activity on Cardano remains disappointing. Compared to competing networks such as Ethereum, Solana or Near, the platform consistently underperforms. Nevertheless, the price is performing relatively well.
Cardano’s Chang hard fork and Bitcoin integration milestones, sparked an ADA surge amid rumors of Hoskinson as US crypto advisor.
