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Bitcoin Tops $44K and Analysts Predict More Growth

Bitcoin Tops $44K and Analysts Predict More Growth

Bitcoin's surge to $44K and potential growth, Bitcoin community split over ordinal inscriptions, and SEC's delay on Grayscale's Ethereum ETF decision.

Welcome to this week’s newest release of Datawallet Daily. As usual, we’ve carefully selected the most important crypto stories from the last 24 hours:

Bitcoin Tops $44K, Analysts Predict More Growth

Bitcoin has surged past $44,000, marking a significant rally with a year-to-date increase of over 160%. This uptrend, reaching heights not seen since April 2022, is believed by analysts to be just the beginning of a longer bullish phase. The rise in Bitcoin’s value is attributed to its growing stature as a global macro asset and the anticipated approval of a U.S. spot Bitcoin ETF. Ethereum also mirrored this positive trend, nearing $2,300. 

Analysts from altFINS emphasize the influence of ongoing ETF optimism and increased institutional adoption, while also highlighting the importance of global macroeconomic trends, particularly the easing of global inflation and central bank policies. The market anticipates potential rate cuts by March 2024, though the Federal Reserve’s upcoming decisions and long-term interest rate projections remain crucial factors influencing risk assets.

Bitcoin Ordinal Inscriptions Split BTC Community

The Bitcoin community is currently divided over the use of Bitcoin ordinal inscriptions, which have led to increased network congestion. Prominent Bitcoin Core developer Luke Dashjr has criticized these inscriptions, describing them as spam exploiting a vulnerability in the Bitcoin Core by bypassing the set data size limit in transactions. 

This has resulted in a significant rise in unconfirmed transactions and memory usage on the Bitcoin blockchain. The issue previously caused Binance to temporarily halt Bitcoin withdrawals due to the surge in unconfirmed transactions.

Despite criticisms, others in the community, like Jason Fang of Sora Ventures, view these inscriptions as an unstoppable and innovative evolution of Bitcoin’s blockchain, offering benefits such as increased fees and profits for miners. 

SEC Delays Decision on Grayscale’s Ethereum Spot ETF Listing

The U.S. Securities and Exchange Commission has postponed its decision on the listing of Grayscale’s Ethereum Trust as an exchange-traded product on the NYSE Arca. Originally set for a decision by December 11, the SEC has now extended the deadline to January 25. This extension is aimed at providing the SEC with more time to thoroughly consider the proposed rule change and its implications. 

The decision on Grayscale’s Ethereum Trust is significant, as it could mark a notable advancement in the integration of cryptocurrency into mainstream financial markets, offering institutional investors easier access to Ethereum. The SEC’s final decision will either approve, disapprove, or initiate further proceedings on the rule change.

$600M in Dogecoin Futures as DOGE Peaks Since April

Dogecoin (DOGE) has experienced a notable surge, rising over 10% to trade above $0.10, a peak not seen since April. This uptick parallels Bitcoin’s recent rally to $44,000, reviving risk appetite in the crypto market. The notional open interest in DOGE futures has increased by 58% to $625 million, the highest since early November 2022, suggesting a confirmed uptrend. 

Funding rates on exchanges have also spiked, indicating a strong investor inclination towards bullish bets. While DOGE often mirrors Bitcoin’s movements, the current increase doesn’t necessarily signal widespread market greed, as the DOGE/BTC ratio remains indicative of a bear market.

Other breaking news

  • Pyth Network Adds Major Players to Governance After Airdrop
  • Helium Mobile Launches $20 Nationwide Unlimited Cell Plan
  • Ethereum NFT Creators Rush to Save Projects from Thirdweb Flaw
  • Amazon Prime Offers Free “Gods Unchained” NFT Game Card Packs
  • Bitcoin Mempool Hits Record Congestion Levels

Wrapping up

Wrapping up today’s edition: Bitcoin surges past $44,000, a trend that might just be starting if spot ETFs are approved. Ordinals’ success has caused network congestion, prompting some Bitcoin core developers to ponder their removal, affecting a $1.2 billion ecosystem. In regulatory news, the SEC has postponed its decision on Grayscale’s Ethereum Spot ETF Listing, with January now in focus. Meanwhile, the recent price surge has boosted traders’ risk-taking, as shown by $600M in Dogecoin Futures. More updates to come!