Crypto Update: BTC-Spot ETF Market Boosts BTC Profits

The BTC-spot ETF market took center stage this week, but Ripple, the SEC, and Senator Warren also made waves in the crypto market news.  

Highlights

• The BTC-spot ETF market saw continuous inflows for five successive sessions.
• XRP dropped below the $0.50 mark due to false reports claiming hackers had accessed Ripple wallets.
• Senator Warren initiated a new anti-crypto campaign, focusing specifically on crypto mining.  

Strength in BTC-Spot ETF Market Drives BTC's 2.87% Gain in a Week

BTC's value increased by 2.87% to $43,271 from Monday to Saturday, with investor response linked to the flow and volume data within the BTC-spot ETF market throughout the week. Notably, the BTC-spot ETF market experienced net inflows for the fifth consecutive day on Thursday. The decline in outflows from the Grayscale Bitcoin Trust (GBTC) played a crucial role in the positive flow patterns.

Furthermore, the iShares Bitcoin Trust (IBIT) surpassed GBTC in trading volumes on its 15th day of trading. Perhaps more notably, IBIT achieved $3 billion in assets within three weeks. ETF Institute co-founder Nate Geraci shared this milestone, noting that IBIT now ranks in the top 10% of all ETFs based on assets.  

BTC Weekly Chart 030224

BTC Resilience Against Hawkish Federal Reserve and Strong US Jobs Report

BTC briefly dropped below $42,000 following a hawkish stance from the US Federal Reserve and a robust US Jobs Report. Despite the Fed's decision to maintain interest rates at 5.50% and dampening expectations for a March rate cut, the BTC-spot ETF market inflows counteracted these developments.

Federal Reserve Chair Powell's comments about the need for greater confidence in inflation's sustainable decline toward 2% before considering rate cuts, as well as the strong January US Jobs Report, led to a reduced likelihood of a March rate cut. Nonfarm payrolls surged by 353,000, with average hourly earnings increasing by 4.5% year-over-year.

The CME FedWatch Tool indicated a decrease in the probability of a March rate cut from 38.0% to 20.5% by Friday. Nevertheless, both the US equity markets and BTC experienced a positive Friday session, with BTC gaining 0.12% and the Nasdaq Composite Index rallying 1.74%.  

BTC Nasdaq Hourly Chart 030224

SEC Requests Dismissal in SEC v Debt Box Case to Avoid Sanctions

The SEC filed a Motion to Dismiss in the SEC v Debt Box case on January 30, arguing against imposing sanctions and emphasizing the implementation of corrective measures to prevent future misrepresentations. The proposed corrective actions involve mandatory training for all Enforcement Division staff involved in investigations and litigation, outlining the importance of candor, the duty to promptly correct inaccuracies, and the unique considerations for seeking emergency relief.

The case gained significant attention in the crypto sphere in December 2023 when Judge Robert Shelby ordered the SEC to demonstrate why the court should not sanction SEC lawyers for false and misleading representations. This legal action stemmed from SEC charges against Debt Box in July 2023, alleging the sale of unregistered securities.

Additionally, Amicus Curiae attorney John E Deaton responded to the court order in December, expressing a belief in the case's significance beyond XRP. He also shared his increased investment in XRP after the lawsuit, based on confidence in a favorable outcome and a belief in legal compliance.  

Fake News of Chris Larsen's Hack Causes XRP to Plummet Below $0.50

XRP experienced a significant drop to a low of $0.4861 on Wednesday due to false reports of hackers accessing 213 million XRP through Ripple wallets. Co-founder Chris Larsen addressed the situation, confirming unauthorized access to his personal wallets.

Ripple CEO Brad Garlinghouse clarified that no Ripple-managed wallets were compromised, emphasizing the inaccurate nature of the reporting.

Throughout the current week, XRP declined by 2.96% to $0.5086 from Monday to Saturday. There were no updates related to the SEC v Ripple case, which could have impacted investor sentiment. Both the SEC and Ripple are awaiting a ruling from Judge Analisa Torres on the SEC Motion to Compel.  

XRP Weekly Chart 030224

Senator Warren's New Anti-Crypto Initiative Focuses on Crypto Mining

Senator Elizabeth Warren voiced renewed concerns about crypto mining, highlighting its energy consumption surpassing that of entire cities. Praising Secretary Granholm's decision to monitor crypto emissions, Warren emphasized the importance of addressing crypto's environmental impact.

In earlier efforts, Warren had criticized cryptocurrencies for their involvement in unlawful activities. She is advocating for legislation to impose banking-style regulations, particularly through the Digital Asset Anti-Money Laundering Act, which aims to grant the SEC increased authority over the US crypto market.