Bitcoin (BTC) and Ethereum (ETH) prices have increased slightly in the past week. BTC added 1.5% to its market value to trade at $29,408 on Saturday. ETH also increased by 1.3% to enter the weekend at $1,851.
The latest weekly report by CoinShares shows that institutional investors have stopped shorting BTC for the first time in 14 weeks. This is a positive sign for the cryptocurrency market, as it suggests that institutional investors are becoming more bullish on BTC.
The increase in BTC and ETH prices is likely due to a combination of factors, including the recent stop in shorting by institutional investors and the overall positive sentiment in the cryptocurrency market. However, it is important to note that the market is still volatile and prices could fluctuate significantly in the near future.
The top 30 cryptocurrencies did not experience any significant price drops in the past week. However, three altcoins posted notable gains: Solana (SOL), Toncoin (TON), and Shiba Inu (SHIB).
- Solana (SOL) increased by 8.5% to its current price of $24.55.
- Toncoin (TON) added 10.1% to hit $1.32.
- Shiba Inu (SHIB) blew up 17.8% to trade at $0.00001108.
Shiba Inu’s price increase is likely due to the news that the coin’s makers are shedding their memecoin reputation and introducing a new identity protocol to all apps on the ecosystem for increased security and privacy.
Overall, the cryptocurrency market made small gains this week, as July’s U.S. inflation readings indicated a continued cooling off.
This week, there were several important developments in the cryptocurrency space. PayPal announced that it would be releasing its own dollar-pegged stablecoin, called PayPal USD (PYUSD). The currency will be issued by Paxos and is expected to become a part of the overall payments infrastructure.
PYUSD will be backed by U.S. dollar reserves, and Paxos will be publishing monthly reserve reports and third-party attestations to ensure that the reserves are credible and the value of PYUSD is stable.
This announcement was met with mixed reactions. Some people were excited about the potential of PayPal to bring more mainstream adoption to cryptocurrencies. Others were concerned about the lack of regulation for stablecoins.
Democratic Congresswoman Maxine Waters (D-CA) expressed her concern that PayPal is launching its own stablecoin without a federal framework for regulation. She said that “given PayPal’s size and reach, federal oversight and enforcement of its stablecoin operations is essential.”
It remains to be seen how PayPal’s stablecoin will be regulated. However, this announcement is a significant step forward for the cryptocurrency industry and could help to pave the way for more mainstream adoption.
This week, there were several important developments in the cryptocurrency space. Brazil announced the name of its new CBDC, the DREX, or the “digital real.” The digital real is a centrally-issued tokenized real that utilizes distributed ledger technology similar to blockchain. However, it has been met with controversy due to the Central Bank’s ability to freeze users’ accounts, decrease target balances, confiscate, and mint new units of the digital currency.
Binance announced that it had secured licenses to operate in El Salvador, a country where Bitcoin is legal tender. Binance has been feeling the heat of the SEC’s spotlight in the United States after the federal securities regulator sued it for breaching securities laws.
The Federal Reserve issued a statement announcing incoming guidance for chartered banks dealing with dollar-pegged stablecoins. It also said it was stepping up its “novel activities supervision program” for banks dealing with crypto or crypto companies in its jurisdiction.
The SEC announced that it plans to appeal Judge Torres’s landmark ruling in the agency’s ongoing lawsuit against Ripple for breaching securities laws. Torres ruled that Ripple’s XRP was not a security by definition but could be presented as one depending on how it’s sold. Her verdict essentially contradicted the SEC’s claim that offerings to retail customers via exchanges constitute securities offerings.
The SEC once more played for time and delayed its decision to approve or reject a high-profile spot Bitcoin exchange-traded fund application from ARK 21Shares.