Weekly Recap: Bitcoin, Binance, Ethereum, XRP… Crypto News Not to Miss!

Week after week, the crypto sector continues to innovate and boldly redefine the boundaries of finance and technology with creativity. In this weekly recap, we will dive into the most significant news of the past week, from Bitcoin’s unexpected resilience despite the European Central Bank’s (ECB) gloomy projections, to the meteoric rise of XRP, and the latest legal developments regarding Binance.

The ECB Incorrectly Predicts Bitcoin’s Demise

In a blog post by the European Central Bank, Ulrich Bindseil and Jürgen Schaaf, two senior officials, expressed concerns about Bitcoin. They consider that Bitcoin, not having kept its promises of decentralization and peer-to-peer payments, is on its last legs. The article, titled “Bitcoin’s last stand”, describes Bitcoin as a dangerous “financial bubble”, exacerbated by recent events such as the collapse of Terra Luna and the FTX case. The ECB estimates that the current stability of Bitcoin’s price around 20,000 USD could be a last gasp before its decline.

Contradictorily, shortly after this article was published, Bitcoin experienced a significant surge, surpassing $40,000. Bitcoin is not yet ready for a “long descent into hell”. The price increase has revived interest from investors and media in this asset class. Bitcoin’s resilience and social utility, used daily by millions for intermediary-free transactions, challenge the ECB’s prediction.

XRP Soaring: All-Time High in Transactions!

Ripple (XRP) is currently in the spotlight, with transactional activity reaching all-time highs. According to data from XRPscan, the number of transactions on the Ripple market recently peaked at 1.38 million, a record since mid-August 2023. This surge in activity coincides with ongoing developments in the lawsuit between Ripple and the SEC and fuels investors’ hopes for an imminent explosion in XRP’s price.

XRP holders are optimistic about the outcome of the lawsuit and anticipate a victory for Ripple that could lead to a significant price increase. Although the price of XRP has remained below $0.64 since early December, several analysts predict an upcoming rise. Beyond the impact on the XRP price, the lawsuit between Ripple and the SEC could create favorable legal precedent for the crypto ecosystem. According to Ripple’s CEO, a victory against the SEC would prevent the agency from continuing its crusade against other crypto projects.

Bitcoin at the Top? The Warning from John Bollinger

John Bollinger, an iconic figure in the trading world, has recently shared his observations on Bitcoin. On December 5th, he noted a marked strength in the Bitcoin market, with prices exceeding the daily and weekly Bollinger Bands, without notable divergences. However, the next day, Bollinger added a cautionary note and suggested that the market might have reached its peak. His previous analyses, based on the Bollinger Bands which measure volatility, were often accurate.

The Bitcoin market is known for its volatility. After a recent rise, the price seems to be stabilizing around $44,000. Current market sentiment analysis indicates a state of “greed”, but not yet “extreme greed”. Despite fluctuations, Bitcoin remains attractive for the long term, not only for its price but also for its potential as a technological and financial revolution.

Bitcoin at $700,000: Adam Back’s Prediction

Adam Back, CEO of Blockstream and a respected figure in the world of cryptography, predicts that Bitcoin’s market capitalization will surpass that of gold within the next two years. Drawing upon his expertise and his role in developing Bitcoin’s Proof of Work system, Back envisions a Bitcoin at $700,000 during the next halving. This prediction is based on a comparison with the market capitalization of gold, which is estimated at $13 trillion. If Bitcoin reached this capitalization, each unit could be worth roughly $700,000.

Gold, traditionally considered the ultimate store of value due to its scarcity and durability, may be dethroned by Bitcoin. With an already impressive Stock to Flow (S2F) ratio set to explode after the next halving, Bitcoin will become even rarer than gold. Back believes that if a portion of gold’s value is transferred to Bitcoin, the flippening threshold could be reached even before $700,000 per Bitcoin.

Société Générale Issues Tokenized Green Bonds on Ethereum

Société Générale (SocGen), the French banking giant, has taken a significant step by issuing 10 million euros of tokenized green bonds on the Ethereum blockchain. This initiative marks a turning point in the tokenization of traditional financial assets. Tokenization offers significant benefits, such as increased transparency, transaction speed, operational cost optimization, and improved liquidity.

This advancement demonstrates the growing interest of traditional financial institutions in blockchain and asset tokenization. AXA, through its subsidiary AXA IM, invested 5 million euros in these tokenized green bonds, even using a proprietary stablecoin for the transaction. Generali Investments also subscribed to this historic issuance. Is this not proof that blockchain is gaining ground in the financial services sector? According to forecasts, $10 trillion in tokenized assets will be in circulation in the coming years!

El Salvador: A Winning Bitcoin Bet

El Salvador, having made the bold bet of adopting Bitcoin as legal tender, is now reaping the benefits of this decision. With the recent rise in the Bitcoin price, surpassing $40,000, the country has recorded a substantial profit. Nayib Bukele, the president of El Salvador, announced a gain of 2.84%, or $3.6 million in profits from the state’s Bitcoin investments. This financial success is all the more significant as El Salvador was the first country to officially recognize Bitcoin as legal currency.

Despite the notorious volatility of cryptocurrencies, El Salvador remains firm in its long-term strategy and does not plan to sell its Bitcoins. Nayib Bukele affirmed that selling Bitcoins is not in the country’s plans, highlighting a deep understanding of the fluctuating nature of the crypto market. This position is also supported by Alejandro Zelaya, the former Minister of Finance, who oversaw the implementation of Bitcoin.

CZ, the Former CEO of Binance, Confined in the USA

Changpeng Zhao, the founder of Binance, is required to stay in the United States until his sentencing scheduled for February on money laundering charges. This decision, made by Judge Richard Jones, reverses a prior authorization that allowed CZ to temporarily return to the United Arab Emirates. Federal prosecutors insisted that the former CEO of Binance, with significant wealth abroad and no ties to the United States, presents a serious flight risk.

Although CZ pleaded guilty last month, showing his willingness to cooperate, the judge found the risk of flight too high, notably due to the lack of an extradition agreement between the United States and the United Arab Emirates, where his family resides. The former CEO of Binance, who has already stepped down from his post, faces a theoretical sentence of up to 18 months in prison, although prosecutors are considering a reduced sentence due to his cooperation.

That’s the essential news to remember for this week. But if you want a more detailed recap and in-depth analyses directly in your inbox, do not hesitate to subscribe to our weekly newsletter.