The Incrypted team has prepared for you a digest about the main events in the cryptocurrency industry over the last week of 2023. In it we will tell you about the growth of the Bitcoin ecosystem, changes in the regulatory field in a number of countries, the forecast of Ark Invest CEO Cathie Wood and the growth in wealth of the former head of the Binance exchange Changpeng Zhao (CZ).
Top News Bitcoin News
- Mining difficulty updated ATH
On December 23, 2023, the figure reached 72.01 T. This is almost 7% higher than the previous value.. Increasing mining difficulty brings the halving date closer, which is expected in mid-April 2024.
- Bitcoin hashrate sets new all-time high
On December 25, 2023, the figure reached 544 EH/s. Since the beginning of the year it has grown by 130%. An increase in hashrate indicates an increase in miner activity.
Dmitriy Yurchenko- CTO Taproot Wizards published a script for blocking “inscriptions”
When deployed on a node, it allows you to block those blocks that included transactions with tokens based on the “Ordinals” protocol. The developer recommended that all those who criticize the “inscriptions” use the solution or “shut up.”
Dmitriy Yurchenko- MicroStrategy has replenished its supply of bitcoins
The company purchased an additional 14,620 BTC in December 2023. Its unrealized profit as a result reached $2.2 billion.
Since the beginning of the year, the company’s shares have increased by more than 300%. However, experts consider them overvalued and pointed to the risk of drawdown in the short term.
Dmitriy Yurchenko- Trading volume in Marathon Digital shares increased significantly
According to this indicator, the company has surpassed such corporate giants as Apple and Tesla.. In December, quotes for this position increased by 184%.
- Bitcoin could fall to $32,000
CryptoQuant experts warned of a possible correction in the asset price immediately after the likely approval of cryptocurrency-based spot ETFs. They believe that the launch of funds will trigger a series of sales, which will negatively affect the price of Bitcoin.
Bitcoin BTCCryptocurrency ETFs
- SEC Sets Deadline for Amendments to Spot Bitcoin ETF Applications
It expired on December 29, 2023. Up until this point, companies could make changes to the papers in order to get into the “first wave” if the regulator approves the launch of funds.
Denis Solomyanyuk- Spot Bitcoin ETFs will bypass all existing cryptocurrency ETPs
BitMEX experts came to this conclusion. They believe that the capitalization of this particular segment will be twice as high as the valuation of the entire crypto-ETP sector (about $50 billion).
- The share of Bitcoin ETFs in the asset supply is 3.8%
The largest of these products is Bitcoin Tracker One (COINXBT) from XBT. His accounts hold $7.11 billion worth of bitcoins.. However, the CoinGecko rating does not take into account the GBTC trust from Grayscale Investments, which controls 622,657 BTC.
- CEO of Ark Invest is confident that the SEC will approve spot Bitcoin ETFs before January 10
Cathie Wood noted that the Commission’s depth of understanding of the industry has changed. She also considers the deadline mentioned above to be a deadline primarily for the regulator, and not for counterparties.
- Grayscale Investments has amended its application to convert GBTC into a spot Bitcoin ETF
The company changed its share redemption model to comply with SEC demands.. Like most issuers, it chose the redemption option for fiat rather than bitcoin.
- Spot Bitcoin ETFs Contradict Satoshi Nakamoto’s Idea
This opinion was expressed by Trezor analyst Josef Tetek. According to him, the launch of funds will lead to centralization of the market and uncontrolled emission of unsecured coins.
Regulation
- Japan plans to abolish corporate tax on unrealized profits in crypto assets
It is expected that parliament will vote on these amendments in January 2024. According to the authors, the bill will ease tax pressure on companies and increase the attractiveness of the country among investment investors.
- In South Korea, civil servants were required to disclose information about savings in crypto assets
The changes will come into force on January 1, 2024. It is expected that the innovation will affect about 5,800 government employees. The purpose of the initiative is to combat corruption and money laundering.
- Hong Kong plans to introduce a licensing regime for stablecoin issuers
The decision was dictated by the desire to protect the interests of investors, which was emphasized by representatives of supervisory authorities. The authorities did not indicate the exact timing.
- Argentines will be allowed to declare crypto assets without indicating their source of origin
The corresponding clause is in the bill “On the foundations and starting points of the freedom of Argentines”. Those who choose to declare savings before March 2024 will be able to pay the fee at a reduced rate.
- In India, authorities have accused a number of large crypto exchanges of operating without a license.
The list of counterparties includes Binance, Kraken, Huobi and others. These platforms face complete blocking in the country.
Ukraine and cryptocurrencies
- NABU spoke about the role of cryptoassets in corruption schemes
According to Deputy Director of the National Anti-Corruption Bureau of Ukraine (NABU) Denis Gyulmagomedov, the agency regularly encounters similar precedents. The main tool to combat them is the skills of agency employees, which they develop in special courses.
- The development of a law on taxation of cryptocurrencies in Ukraine was included in the National Revenue Strategy
On December 27, 2023, the government approved the National Revenue Strategy for 2024-2030, which is a roadmap for reforming the tax and customs system of Ukraine. In particular, it provides for the regulation of the turnover of virtual assets.
Mt. Gox
- Affected clients of the bankrupt Mt exchange. Gox received first payments
This was stated by users of Reddit and X (formerly Twitter). According to them, the accrual took place through the PayPal payment service. Payments were in fiat.
- Some of the affected Mt customers. Gox received double compensation
The exchange sent such users a notification asking them to return the excess amount.. They recommended the company wait 10 years, almost the same amount of time it took the platform to start making payments.
Media reported that OpenAI is preparing a new round with a potential valuation of $100 billion
Timing, participants and potential investment amount are not disclosed. However, the company is also in talks to raise about $10 billion from a company in the UAE called G42.
In 2023, the volume of venture investments in crypto projects fell by 68%
The Block experts came to these conclusions. They cited several reasons for this trend, including: the collapse of FTX, macroeconomic factors, and regulatory pressure.
Changpeng Zhao’s wealth increased by $25 billion in 2023
The fortune of ex-CEO of the Binance cryptocurrency exchange Changpeng Zhao is estimated at more than $37 billion. Since January 2023, this figure has increased by $25 billion, Bloomberg reports.
Other news
- SEC Admits False Statements in Suit Against DEBT Box;
- Epic Games has made changes to its app store policies. Blockchain projects have returned to the platform;
- KyberSwap reduced staff by 50% after hack;
- in 2023, Sotheby’s auction house sold $35 million worth of NFTs;
- Barry Silbert and Mark Murphy will leave the board of directors of Grayscale Investments;
- in 2023, almost 1,000 crypto companies were registered in the EU;
- former US President Donald Trump sold Ethereum for $2.4 million;
- in 2023, tech companies laid off more than 260,000 people;
- early investor Aave earned more than $15 million from an initial investment of $500,000;
- FTX lenders proposed to evaluate the exchange’s crypto assets at the rate of November 2022;
- in the SEC case against Terraform Labs, the court sided with the regulator.
What’s up with Incrypted? Articles and interviews
This week, the editors of Incrypted summed up the results of 2023. We have prepared a summary of it in a separate material:
Denis SolomyanyukIn 2023, many crypto exchanges faced problems, particularly regulatory ones.