Hey everyone! Welcome back to the latest edition of The Blockchain Bulletin. Over the weekend, the crypto community witnessed diverse developments in the digital asset sector. With Bitcoin dominance at 56.79% and altcoins at 43.21%, the overall market cap experienced a downfall. Also, the Fear and Greed Index was at 51, indicating a neutral sentiment in the market. Over the weekend, the trending tokens were PHA, VIRTUAL, BTC, OGN, and POND, while the top gainers were BGB, VIRTUAL, FTT, GT, and OKB.
Moving onto the news, Galaxy Research stated that the US will not buy new Bitcoin in 2025. According to its research report, the firm stated that the US government would secure its current Bitcoin holdings and would not purchase any in the coming year. It further added that the focus will be on the current holdings while examining the possibilities of long-term usage for the cryptocurrencies in the treasury. According to a crypto analytical firm, the US government currently has 183,850 Bitcoins worth $17.36 billion in different addresses.
Further, Wyoming Senator Cynthia Lummis, who proposed the Bitcoin Act 2024 stated that the government needs to acquire nearly 200,000 Bitcoins per year for five years to establish a 1M BTC reserve for at least twenty years. Also, the proposal stated the urge to consider Bitcoin as a strategic asset while it remains under legislative review.
On the other hand, the crypto community raised concern over the DeFi regulations that were finalized by the Biden administration and the Internal Revenue Service (IRS). The IRS brought in new rules that classified front-end protocols handling digital asset transactions as ‘brokers’, which impacted nearly 875 DeFi platforms. Further, the new rules imposed on brokers to report gross proceeds and issue Form 1099 to customers. This made it mandatory for them to collect users’ data including their names and addresses. Meanwhile, the Blockchain Association, DeFi Education Fund, and the Texas Blockchain Council jointly filed a case against IRS’ broker rule, stating that if implemented, it could pose a risk and ‘cripple’ the US digital asset sector.
Differences Between DeFi and CeFi: A Comprehensive GuideOn the institutional front, VolatilityShares submitted a proposal to the US Securities and Exchange Commission (SEC) to list an exchange-traded fund (ETF) that tracks Solana futures. This will enable the investors to invest in the blockchain through a regulated investment vehicle, enabling them to participate in the crypto market. Further, the proposed ETF will have leveraged options of 1x, 2x, and -1x. This structure was developed to accommodate all investors, irrespective of their risk factors. Talking about the leverage options in brief, the 1x leverage will provide normal trading conditions, while 2x will increase returns, whereas the -1x leverage will provide a hedging opportunity for investors against possible market trends.
Over the weekend, the cryptocurrency market experienced notable developments, particularly concerning XRP, Chainlink (LINK), and the stablecoin sector. The price of XRP has been volatile, dropping to nearly $2.18, a drastic decline that was influenced by Bitcoin’s downturn and broader market pressures. At press time, the token was trading at $2.08. Speculations were rife among investors that the token might follow the Bitcoin trend and move down further to $1. With a decline in network growth and fewer active addresses, investor interest has significantly shifted.
Kaspa Review: A Beginner’s Guide to the Fastest BlockchainChainlink (LINK) faced significant resistance at $24.05 and $26.05 over the weekend. Surpassing these levels could propel LINK towards $28 or $30, representing a potential 20-40% increase or lead to a decline in the $16-$17 range. With these challenges, LINK’s future relies on its resistance level and sustains its price upsurge. Further, keeping its long liquidations at $580.93K and its shorts at $56.44K, the Directional Movement Index (DMI) showed a bearish trend.
In the last 24 hours, LINK experienced total liquidations of $841,400, with its long positions at $606,700 and shorts at $234,700. These liquidation patterns highlight the volatility of LINK in the market, cautioning traders to closely monitor key resistance and support to avoid imminent risks.
On the other hand, the stablecoin market reached $200B, with Tether (USDT) leading at $142.9 billion. This growth coincided with the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, which enforced strict compliance requirements for stablecoin issuers. Although USDT has yet to comply with MiCA regulations, its prime competitor, Circle (USDC), has been MiCA-compliant since mid-2024.
