Bitcoin as the Best Performing Asset in 2024 – Market Info

Over the past two weeks, the total market capitalisation exceeded €1.98 trillion. The decrease in market capitalisation over a 14-day period is 11.91%. The price of Bitcoin has fallen by 13.05% over the last 14 days to a current value of over €53,300. Bitcoin’s dominance is currently around 54.37%.

Source: Coinmarketcap

Bitcoin as the Best Performing Asset in 2024

Bitcoin and Ethereum generated nearly 3 times higher returns in the first half of this calendar year than traditional assets such as the Nasdaq, gold, the S&P 500 or oil.

Cryptocurrencies, specifically Bitcoin and Ethereum, are performing the highest this year compared to other asset classes, according to a July 1, 2024 post by Matrixport, as calendar year 2024 rolls into its second half.

Source: Matrixport X account

Based on the published data, Bitcoin (BTC/USD) has appreciated as much as 46% since the beginning of 2024, while Ethereum (ETH/USD) has appreciated even more at 48.3%. The performance of Bitcoin and Ethereum cryptocurrencies is significantly higher this current year compared to assets from the traditional financial world, where, for example, the Nasdaq index has appreciated by 20%, the S&P 500 index by 15.1% and gold has risen by around 12.7%.

The biggest catalyst for cryptocurrency growth this year, according to analysts, was the approval of spot bitcoin ETFs in January, which opened the door to new institutional capital. This assertion was backed up by BBVA’s Philippe Meyer, who said during his panel discussion at the Corporate Innovation Day conference that the introduction of a small portion of digital assets such as Bitcoin or Ethereum significantly improves the performance of investment portfolios.

According to Matrixport, by 2024, Bitcoin’s performance will have dramatically outperformed the S&P 500 index. Year-to-date (YTD), Bitcoin’s price has risen 46%, compared to a 15% increase in the S&P 500, indicating that Bitcoin has outperformed the S&P 500 more than threefold.

In its annual Big Ideas 2024 report, ARK Invest examined the performance of various major asset classes over different time periods. The company’s report revealed that over various time periods spanning seven years, bitcoin’s annual returns were 44% compared to the average 5.7% return of other major asset classes including gold, commodities, real estate, bonds or equities. Source

SONY Will Launch Its Own Crypto Exchange

Japanese multinational conglomerate corporation Sony is preparing to launch its cryptocurrency exchange. According to available information, this should happen by restarting one of the crypto exchanges that SONY bought back in August 2023. The new exchange from SONY will be called S.BLOX and its goal is to strengthen Sony’s presence in the digital asset space.

Sony bought out Amber Japan back in August 2023 through its subsidiary Quetta Web. Amber Japan was originally known as DeCurret, even before Singapore’s Amber Group took over that Japanese exchange in 2022.

Sony has renamed its acquired exchange to S.BLOX and plans to significantly upgrade its user interface and mobile app. However, the exact launch date of this new crypto exchange remains unknown for now.

The involvement of such a large technology giant as SONY clearly reflects the growing interest in cryptocurrencies and the world of digital assets. By launching its own exchange, Sony can leverage its brand reputation to expand globally in digital assets. Japan has long been one of the leading players in the cryptocurrency sector thanks to its proactive regulation and high consumer awareness. This also makes it an ideal place for Sony to make its cryptocurrency debut and gradually expand its services. Source

Binance Wins Lawsuit with SEC

Cryptocurrencies and secondary sales of Binance’s BNB token do not constitute securities, a United States federal court has ruled in yet another lawsuit that sets an important precedent for the entire crypto industry.

Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia ruled that cryptocurrencies and secondary sales of the Binance token (BNB) do not constitute securities offerings – which means, in practice, that the BNB is not a security under this ruling.

“The court held that the SEC failed to plead that purchasers in secondary market sales acquired BNB with an expectation of profits, rather than for other uses, which is a key criterion for passing the Howey test (a legal framework outlined by the Supreme Court to determine whether a transaction qualifies as an investment contract).” Binance said in a statement on Tuesday.

The SEC began actively cracking down on crypto exchanges after the FTX crash, presumably to avoid similar collapses in the future. However, the regulator’s actions have been heavily criticized by the wider public for the fact that the SEC has taken a very harsh approach to the battles, even at the cost that the regulator’s stance could significantly stifle innovation in the country.

According to analysts, the decision could also have positive implications for other ongoing legal disputes, such as those involving Ripple and Coinbase. Source

Circle as the First Global Issuer Regulated by the MiCA

Jeremy Allaire, co-founder and CEO of Circle, announced during a Monday press conference in Paris that his company had become the first global issuer of stablecoins to receive regulatory approval under the European Union’s broad regulatory framework for crypto-asset markets (MiCA).

Circle’s USDC and EURC stablecoins are reportedly regulatory compliant under the new set of rules, meaning holders of these stablecoins do not have to worry about being forced to swap their stablecoins into other digital assets in order to remain compliant with the new incoming regulation.

Allaire also announced that Circle has chosen France as the European headquarters for his company, highlighting France’s forward-looking stance on digital asset regulation and Circle’s working relationship with the French Prudential Supervision and Resolution Authority (ACPR).

Circle’s USDC stablecoin, which is currently the second largest stablecoin in the cryptocurrency market, has thus become the first ever stablecoin to meet the regulatory requirements under MiCA regulation. Source

Sales Pressure from Miners Is Decreasing

Even though the last few weeks have been very positive in terms of macroeconomic indicators, Bitcoin has failed to respond to this news with any significant growth. Why is this?

Analysts attribute this situation to selling pressures from investors and miners who are still realizing profits at current price levels. In the case of the miners, it is not so much a question of realising profits as of divestments to cover the costs of extraction. However, this could soon change as, according to the available data, the selling pressure from the miners is gradually easing.

According to the latest report from Bitfinex Alpha, the volume of BTC transferred from miners’ wallets has dropped significantly over the past week, indicating a potential stabilization in this area. Analysts said that such a development is positive for the bitcoin price from their perspective, and bitcoin could resume its upward trend soon, according to them.

Since the April halving of the Bitcoin network, miners’ incomes have halved. As older mining machines have become economically inefficient due to higher operating costs, some miners have had to liquidate their Bitcoin reserves to sustain their mining operations. These entities have gradually divested their assets over the past weeks through over-the-counter (OTC) and open-market transactions in order to continue their operations.

Despite these positive developments, however, there is still much to be wary of. According to analysts, in addition to miners, other factors currently influencing the market are also creating panic and selling pressure, including the German government’s divestment of bitcoins and the information that crypto exchange Mt Gox could soon redistribute bitcoins to users who were victims of a hack back in 2014. These factors are currently significantly influencing investor behaviour in the cryptocurrency market. Source

Inflows into BTC ETFs Reach Three-Week Highs

Despite the fact that the cryptocurrency market may be seeing a minor correction at the moment, accompanied by a decline in asset prices, spot bitcoin ETFs in the U.S. continue to accumulate bitcoins and on Monday 1.7.2024 saw a combined inflow of 2,047 BTC worth approximately US$129.4 million. Also surprising are the sustained high trading volumes, which reached as high as $1.36 billion across the 11 funds on Monday.

According to the data, the funds saw their highest inflows since June 7 on Monday, with a total of as much as $14.6 billion flowing into the funds since January. The largest fund in terms of AUM (assets under management) is currently BlackRock’s iShares Bitcoin Trust, which holds a total of 306,979 bitcoins worth $18.5 billion.

All U.S. spot bitcoin ETFs currently hold a cumulative total of 866,348 BTC, with a current value of $53 billion.

In addition, spot Ethereum ETFs are expected to be launched in the US in the coming weeks, which could bring a boost and new capital to the market. ETFStore President Nate Gerac said in his latest interview that he believes spot Ethereum ETFs will be the second most successful debut in ETF history, right up there with the debut of spot ETFs on bitcoin. According to him, this year will see the two most successful ETF debuts in the ETFs’ more than 30-year history. Source

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