This week in the crypto world has seen some intriguing developments. A large amount of Bitcoin was moved from Mt. Gox wallets as preparations to repay creditors began, causing the Bitcoin price to drop below $68,000 and making the crypto markets nervous.
Ripple Labs and Bitcoin captured significant attention, while Ethereum and other altcoins experienced volatility, closing out another week of notable developments in the crypto world.
Key Developments in the Crypto World
This week, significant headlines have emerged in the crypto market, highlighting notable events and trends:
- A recent poll revealed that nearly half of the voters in the 2024 Presidential election expect to include crypto in their portfolios, underscoring crypto’s growing importance for American voters.
- Mt. Gox wallets saw significant activity with large amounts of Bitcoin being moved in anticipation of creditor disbursements, impacting Bitcoin’s price, which dropped below $68,000.
- Officials from Argentina and El Salvador met to discuss Bitcoin adoption and regulation. Argentina aims to leverage El Salvador’s experience to develop a regulatory framework for its growing cryptocurrency industry.
- Long-term Bitcoin holders have begun reaccumulating for the first time since December 2023, with selling pressure easing significantly. This marks a phase where long-term holders are increasing their holdings again.
Bitcoin, Ethereum & Other Crypto Developments
Bitcoin faced a tough week, struggling to break significantly above the $70K mark. BTC briefly topped $70K but soon dropped back to the $67K level, aligning with crypto options expiry on May 31. A notable spike in BTC withdrawals from exchanges, worth $2.5 billion, garnered significant attention.
Ethereum and other altcoins experienced turbulent price action. Despite the ETH ETF buzz, Ethereum struggled to maintain a break above $3,800, aligning with options expiry on May 31. Top altcoins SOL, XRP, and DOGE witnessed sluggish movement. Dogecoin, Pepe coin, and FLOKI whale activity spiked, while LUNC emerged as a new topic of discussion with noteworthy advancements.
Analysts predict an imminent Ethereum bull run. According to Kaiko Research, the approval of spot Ethereum ETFs is a positive sign for ETH’s long-term growth despite potential short-term struggles due to anticipated outflows.
Ethereum co-founder Vitalik Buterin emphasized the unique role of Layer2s in the Ethereum ecosystem, fostering independent sub-ecosystems contributing to the broader network.
JPMorgan predicted lower demand for spot Ethereum ETFs compared to Bitcoin ETFs, citing several factors. The bank also noted potential hurdles for additional crypto ETFs given the SEC’s stance on classifying most cryptocurrencies as securities.
ENS Labs has proposed the ENSv2 upgrade to migrate the protocol to a Layer2 network, which has seen a significant increase in adoption, with TVL on these networks reaching $47 billion.
Technology Updates
PayPal launched its PYUSD stablecoin on Solana, marking its first expansion beyond the Ethereum ecosystem and demonstrating PayPal’s commitment to broadening its crypto offerings.
Business Developments
Polygon, Polyhedra, and StarkWare challenged xkSync’s use of the “ZK” ticker and demanded that Matter Labs withdraw its trademark application for “zero knowledge.” Matter Labs defended its actions, calling its trademarks “defensive.”
Security Issues
- Gambling platform ZKasino announced a 72-hour window for investors to claim refunds after accusations of a $33 million rug pull, despite doubts about the refund process’s legitimacy.
- On-chain investigator ZachXBT claimed the team behind Solana-based meme coin CAT was responsible for hacking crypto influencer GCR’s account to manipulate specific token prices.
- Normie Coin suffered a crippling exploit, losing 99% of its value and rattling the community.
Regulation
Reports claimed that Elon Musk would advise Republican presidential candidate Donald Trump on crypto during his election campaign. Discussions between their representatives are ongoing, with campaign strategists considering inviting Musk to speak at the Republican convention.
XRP Lawsuit: The Ripple Labs vs. U.S. SEC lawsuit saw Ripple countering the SEC’s motion to oppose sealing key remedies-related documents. Pro-XRP lawyer Bill Morgan addressed the FUD surrounding XRP ODL sales, disregarding implications of the lawsuit and escrow on XRP’s price. Meanwhile, XRP whales have become notably active, accumulating coins despite market uncertainty.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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