Weekly Review: SEC Approves Bitcoin ETF, Yet Price Falls Below $43,000

The U.S. Securities and Exchange Commission (SEC) has approved spot Bitcoin ETFs, yet the price of the leading cryptocurrency has slipped below $43,000. Meanwhile, inflation in the U.S. has accelerated, Elon Musk has proposed using Bitcoin on Mars, among other notable events of the past week.

Bitcoin Price Falls Below $43,000

Starting the week at $44,000, on Tuesday, January 9, the leading cryptocurrency tested $47,000. On Thursday, January 11, Bitcoin briefly surpassed $48,000 but failed to maintain this level.

In the early hours of Saturday, January 13, digital gold prices fell below $42,000. At the time of writing, the asset is trading below $43,000.

This week, the second-largest cryptocurrency by market capitalization tested the $2700 level for the first time since May 2022. At the time of writing, the asset is trading above $2500.

Most digital assets in the top 10 by market capitalization ended the week in the “green zone.” Ethereum saw the largest gain, rising by 13.6%.

The total market capitalization of the cryptocurrency market stands at $1.77 trillion. Bitcoin’s dominance index is 51.1%.

SEC Approves 11 Spot Bitcoin ETF Applications

On January 10, the SEC approved all 11 spot Bitcoin ETF applications. Trading commenced the following day. Approved issuers include Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin Templeton.

A day before the official approval, the SEC’s X-account was hacked to publish a fake announcement of Bitcoin ETF approval. The FBI has joined the investigation of the incident.

U.S. Senator Elizabeth Warren criticized the SEC’s decision. Commissioner Caroline Crenshaw described the approval as “unjustified and ahistorical.”

The crypto community has begun discussing the prospects of an exchange-traded fund based on Ethereum’s spot price, but investment bank TD Cowen experts doubt its imminent approval.

JPMorgan analyst Nikolaos Panigirtzoglou stated that the SEC first needs to classify Ethereum as a commodity rather than a security. He estimated the likelihood of this happening by May at no more than 50%.

BlackRock CEO Larry Fink saw value in a spot Ethereum ETF, suggesting it is “just a stepping stone to tokenization.” 

Topics to Discuss with Friends

• Experts highlighted promising airdrops for 2024.
• Standard Chartered predicted Bitcoin could reach $200,000 following ETF approval.
• Solana meme token prices plummeted after a December surge.
• An unknown individual spent $64,000 creating mysterious Bitcoin “inscriptions.”

U.S. Inflation Accelerates to 3.4%

Annual inflation in the U.S. accelerated to 3.4% in December, exceeding the consensus forecast of 3.2% and the previous month’s figure of 3.1%.

On a monthly basis, the consumer price index rose by 0.3%, three times faster than in November. The indicator also exceeded economists’ expectations of 0.2%.

The measure excluding food and energy prices increased by 0.3% from the previous month and by 3.9% compared to December last year. The previous month’s figures were 0.3% and 4%, respectively. 

Analysts expected the annual rate to slow to 3.8% and the monthly rate to remain at 0.3%.

Elon Musk Proposes Using Bitcoin on Mars

Billionaire Elon Musk has suggested the use of cryptocurrencies, including Bitcoin, as a currency on Mars. 

Responding to a user’s question, he initially doubted the first cryptocurrency’s functionality for such use. He cited the significant time required for transaction confirmations as a limiting factor.

However, after discussions, the billionaire concluded that it is quite feasible: 

“There might be a way to use Bitcoin to some extent, but it would be difficult to use it in large quantities on Mars. Mars is about 20 light minutes from the Sun, so localizing such things there is not easy.”

Subsequently, Musk agreed with Bitcoin Core developer Matt Corallo that the low transaction speed could be addressed with a localized Bitcoin Lightning Network micropayment system.

According to the entrepreneur, some stakeholders in the crypto industry are discussing steps to bring cryptocurrencies to Mars, but technological challenges must be addressed first. 

Meanwhile, Blockstream CEO Adam Back called the distance to the “red planet” the least significant obstacle. He also noted that Bitcoin’s current throughput is quite suitable for Mars. 

Also on ForkLog:

• Arthur Hayes predicted a potential 30% Bitcoin correction.
• Meme token SAMO surged 54% amid an airdrop for Saga smartphone owners.
• Xai gaming project token plummeted 30% during an airdrop.
• The first Bitcoin transaction turned 15 years old.

Cathie Wood Predicts Bitcoin at $1.5 Million and Reveals Her Investments

CEO of ARK Invest, Cathie Wood, revealed that she holds about a quarter of her financial capital in Bitcoin. She added that her portfolio is “almost entirely tied to innovation,” including cryptocurrencies.

According to The Street, Wood’s net worth was estimated at around $140 million as of September 2023. The publication noted that other media outlets have cited figures ranging from $250 million to $300 million.

Wood also predicted Bitcoin could reach $1.5 million by 2030. ARK Invest specialists believe that even in a bearish scenario, the digital gold’s price will rise to $258,500. Their conservative estimate is $682,800.

What Else to Read?

Our traditional digest compiles the week’s main events in cybersecurity.

The cryptocurrency industry is attracting an increasing number of institutional players. This is evidenced by new infrastructure investments and the growing attention companies are paying to Bitcoin as an asset class. The most important events of recent weeks are reviewed in ForkLog.