Here is a comprehensive account of this week’s major events across the crypto sector
Ether surges to new highs while Bitcoin struggles to retest $60,000
Ether began the month with strong upward momentum, pushing its price steadily higher through the end of last week. That continued uptrend carried ETH to a new high near $2,142 on Saturday, according to CoinMarketCap data. The token pulled back to about $2,060 on Sunday and remained around that level into Monday.
ETH rallied again late Monday and retested roughly $2,130 early Tuesday. It held that level until Wednesday, when a sharp drop pulled the price below $2,000. Since then Ether has recovered above $2,000 and is trading around $2,068.34 at the time of reporting.
Bitcoin briefly tested $60,000 on Saturday before surrendering more than $1,000 of those gains within 24 hours. BTC traded near $59,000 into the start of the week and stayed in that range through Wednesday. A sudden decline on Wednesday pushed it down to about $55,000, although it recovered to roughly $56,000 by the day’s end. Bitcoin is now trending upward again and attempting another run at $60,000 after several recent failed attempts.
Grayscale aims to convert its Bitcoin Trust into an ETF
Grayscale, the U.S.-based digital asset investment firm, confirmed this week that it remains focused on developing exchange-traded fund products. The company said it plans to convert its flagship Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
GBTC is the largest Bitcoin investment vehicle on the market, representing approximately $34 billion in assets under management. In a blog post outlining its intentions, Grayscale highlighted the firm’s history and growth and reiterated that transitioning Trust products into ETFs was part of its long-term strategy.
The company said it has been monitoring the regulatory environment to determine when it would be appropriate to move forward. Grayscale noted that it first filed for a Bitcoin ETF in 2016 and engaged with the U.S. Securities and Exchange Commission in 2017 before withdrawing that earlier application.
MicroStrategy makes another $15 million Bitcoin purchase
MicroStrategy announced on Monday that it completed a further Bitcoin purchase valued at $15 million. With this acquisition the business intelligence firm added 253 bitcoins, bringing its total holdings to 91,579 BTC.
The latest purchase follows a similar $15 million buy about a month earlier, meaning MicroStrategy has acquired roughly $30 million in Bitcoin over the past three weeks. According to SEC filings, the company paid an average of $59,339 per coin for the most recent transaction.
Since its first purchase at the end of Q3 2020, MicroStrategy has spent around $2.23 billion on Bitcoin. The firm’s average cost basis per coin is about $24,311. At today’s Bitcoin price near $58,000, MicroStrategy’s holdings are worth more than $5 billion—over double the total amount it invested.
Coinbase, Fidelity, and Square form a crypto industry council
Fidelity Investments, Coinbase, and Square have joined other industry players to form a new trade group aimed at promoting the positive aspects of cryptocurrencies. Reported by The Wall Street Journal, the organization—whose founding members also include Paradigm—is called the Crypto Council for Innovation.
The council’s purpose is to shape a more constructive industry narrative for regulators and policymakers, support constructive policy dialogue, and foster innovation. U.S. crypto regulation remains unclear in many areas, and the group intends to help clarify how digital assets should be regulated.
According to reporting, the council’s mission is to communicate the “transformational promise of crypto” and its benefits to policymakers, regulators, and the public. Governance will include a board with representatives from each founding company and a dedicated executive team.
Coinbase listing boosts Enjin price
Ethereum-based Enjin received a major lift this week after Coinbase Pro announced support for the token. The exchange said on Wednesday that it would make Enjin available for professional trading, triggering a strong upward move in the token’s price.
Enjin closed Wednesday above $2.80 and crossed the $3.00 threshold the following day. The rally pushed ENJ past $3.20 on Thursday and reached a new all-time high of $3.65 earlier today. The token is trading around $3.61, having gained more than 26% in the last 24 hours.
PayPal CEO’s remarks on China spark controversy
Midweek remarks from PayPal CEO Peter Thiel sparked controversy when he suggested China could use cryptocurrencies as a geopolitical tool to challenge the dominance of the U.S. dollar. Thiel argued that Bitcoin and other crypto assets could be leveraged as financial instruments to weaken central bank-issued currencies.
He warned that such strategies could undermine the dollar’s position and give other nations, including China, greater sway in the global economy. In his comments he also criticized U.S. technology companies for their business ties with China.