With its disruptive announcements, technological advancements, and regulatory upheaval, the cryptocurrency landscape keeps demonstrating that it is a place of boundless creativity as well as a battleground for laws and policies.
The most important stories from the previous week pertaining to Bitcoin, Ethereum, Binance and Solana, and Ripple are outlined below.
In a recent landmark research, the world's largest bank by assets, the Industrial and Commercial Bank of China (ICBC), compared Bitcoin to digital gold and Ethereum to digital oil. Bitcoin is commended for being strong and rare, evolving into a secure sanctuary of value on par with gold.
Conversely, Ethereum is acknowledged for its pivotal function in driving Web3 apps and initiatives, along with its persistent technological advancements concerning security, scalability, and sustainability.
This acknowledgment underscores the growing significance of cryptocurrencies in the global economy and represents a critical turning point in the acceptance of cryptocurrencies by conventional financial institutions.
Using Shopify, Solana reinvents payments.
With the expansion of its Shopify plugin, Solana Pay can now accept over 100 different cryptocurrencies. With the help of Helio, this upgrade provides retailers with a lower-cost decentralised payment option that includes real-time conversion to stablecoins like USDC, EURC, PYUSD, and USDY.
The plugin seeks to enhance Web3 features, loyalty programmes, and payment experiences for millions of retailers by integrating them into cryptocurrency commerce.
Solana Pay makes it easier for people to accept cryptocurrency payments in large quantities and gives Shopify users more flexibility and speed with its competitive transaction fees of 0.75% and on-ramp via the Helio dashboard.
The FED keeps interest rates stable.
The Federal Reserve of the United States (Fed) declared that its monetary policy will remain unchanged, predicting only a quarter-point reduction in interest rates by year's end. This decision created a climate of uncertainty surrounding Bitcoin, which disappointed investors who had been hoping for further decreases.
Bitcoin, which is seen as an inflation hedge, responds sharply to the monetary policies of the Federal Reserve. A rate cut might buck the trend of restrictive policy, which enhances the US currency and drives down the price of Bitcoin.
Bitcoin's short-term mild volatility indicates that this move was expected by the market. The long-term picture is still unclear, though, as further rate cuts in the future might herald a recession and drive investors to seek for safe-haven investments like Bitcoin.
Ethereum ETF: Gary Gensler says it will soon be approved
Recently, investors' hopes were rekindled by SEC Chairman Gary Gensler's suggestion that Ethereum ETFs would receive final regulatory approval by the end of summer. The second-largest cryptocurrency by market capitalization, Ethereum, is an easier investment to make, according to this prospect.
For their Ethereum ETFs, a number of major financial firms, like VanEck and BlackRock, have already gotten preliminary permission; final validation would enable these new offerings to be traded on the exchanges. Experts predict that the crypto market would benefit, helped by indications of a deceleration in US inflation and potential loosening of monetary policy.
The introduction of Ethereum ETFs may bring about a new era for digital assets and financial markets, notwithstanding the current volatility in the sector.