Introduction to Cryptocurrency Headlines

The cryptocurrency world witnessed significant developments this week. Bitcoin recorded its biggest inflow day, Ether ETFs made a strong debut, and speculation rose about Bitcoin becoming a strategic reserve asset under a potential Trump administration. Stay informed on the most significant crypto developments this week and what they mean for the market’s future.

Top Stories This Week

Bitcoin ETF Records Biggest Inflow Day Since March

BlackRock’s spot Bitcoin exchange-traded fund (ETF) saw its largest inflow day in over four months, with over $523 million entering the fund on July 23. The iShares Bitcoin Trust ETF (IBIT) acquired 7,759 Bitcoin on July 22, valued at just over $523 million at the time of writing, according to Hey Apollo data cited by co-founder Julian Fahrer in a July 23 post on X.

The July 22 inflows bring the total assets under management for IBIT to 333,000 BTC, worth around $22 billion at current prices. This marks the seventh-largest day of record for inflows into IBIT in United States dollars. The largest single day of inflows occurred on March 18, when $849 million worth of BTC was added to the fund. The second-largest day on record was March 5, with the fund seeing $788 million in inflows, according to Farside Investors data.

Revolut Secures UK Banking License After Three-Year Wait

Revolut, the London-based fintech company, finally secured a banking license in the United Kingdom after a protracted three-year regulatory approval process. This significant milestone, announced on July 25, marks a pivotal moment for the company as it strengthens and solidifies its position in its home market.

The UK’s Prudential Regulation Authority granted the license with certain restrictions, allowing Revolut to gradually build out its banking operations before a full-scale launch. CEO Nik Storonsky commented on this landmark event:

“We are incredibly proud to reach this important milestone in the journey of the company, and we will ensure we deliver on making Revolut the bank of choice for UK customers.”

Founded in 2015, Revolut has rapidly grown its customer base, with nine million registered users in the UK and over 45 million globally. It is supported in 35 countries worldwide. Revolut was valued at $33 billion during a fundraising round in 2021 and is currently in discussions to sell shares worth about $500 million, potentially increasing its overall valuation to approximately $40 billion.

Crypto Trading Trends and Market Analysis

India Cracks Down on Darknet Drug Deals Using Crypto Tracking

India’s Narcotics Control Bureau (NCB), the country’s nodal drug law enforcement and intelligence agency, is actively monitoring cryptocurrency payments on the darknet as part of its ongoing efforts to combat drug trafficking in the country. During a Parliamentary discussion on July 24, Nityanand Rai, the minister of state for home affairs, revealed India’s current strategy to reduce the import and inter-state movement of narcotic drugs.

According to NCB data, the use of cryptocurrencies in drug crimes has been inconsistent over the last five years. However, the number of cases of drug seizure involving darknet and cryptocurrencies has seen a steady increase since 2022. Rai detailed 13 plans of action against the growing problem of drug trafficking and narco-terrorism in India, two of which targeted the misuse of cryptocurrencies. He said:

“A Special Task Force on Darknet and Crypto Currency has been constituted to monitor suspicious transactions related to drugs on Darknet.”

Spot Ethereum ETFs Post $107M Net Inflows on First Day

United States Ether exchange-traded funds (ETFs) posted net inflows of $106.6 million on their first day of trading despite massive outflows from Grayscale’s freshly converted Ethereum Trust. BlackRock’s iShares Ethereum Trust ETF led the pack with $266.5 million of inflows, followed closely by the Bitwise Ethereum ETF with $204 million in net inflows. The Fidelity Ethereum Fund ETF came in third with $71.3 million.

The inflows to the newborn spot Ether ETFs were enough to overcome bleeding from the Grayscale Ethereum Trust (ETHE), which saw outflows of $484.9 million on the day, amounting to 5% of the once $9 billion fund. ETHE was launched by Grayscale in 2017, allowing institutional investors to buy ETH but imposed a six-month lock-up period on all investments. Its conversion to a spot ETF means that investors can more easily sell their shares, which could explain the high day-one outflows. In January, spot Bitcoin ETFs were marred by a similar dynamic with the Grayscale Bitcoin Trust, which saw over $17.5 billion in outflows following the launch of the 11 spot BTC ETFs.

International Crypto News

Trump Administration May Make Bitcoin a Strategic Reserve Asset

Asset manager Bryan Courchesne recently appeared on CNBC to discuss Bitcoin’s potential to become a strategic reserve asset of the United States government under a potential future Trump administration. According to Courchesne, adopting Bitcoin as a reserve asset would be difficult but not impossible. He pointed to the Department of Justice’s vast holdings of 200,000 BTC, making the U.S. government the largest holder of Bitcoin behind its pseudonymous creator, Satoshi Nakamoto.

Courchesne explained that the Department of Justice could simply transfer the Bitcoin to the United States Department of the Treasury, paving the way for the Treasury to begin accumulating and holding the scarce asset long-term. Speculation that Bitcoin may become a global reserve asset or a strategic U.S. Treasury asset surged following former President Donald Trump’s announcement of support for the digital asset industry amid mounting worldwide debt and monetary inflation. Trump’s pick of J.D. Vance, a 39-year-old Bitcoin holder, as his running mate also fueled speculation that a future Trump administration could mean a new era for crypto, in which Bitcoin becomes fully integrated into the current financial system.

Winners and Losers of the Week

At the end of the week, Bitcoin (BTC) is at $67,636, Ether (ETH) at $3,260, and XRP at $0.59. The total market cap is at $2.41 trillion, according to CoinMarketCap. Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Helium (HNT) at 20.43%, SATS (1000SATS) at 11.81%, and Pyth Network (PYTH) at 10.73%. The top three altcoin losers of the week are Lido DAO (LDO) at 19.39%, Worldcoin (WLD) at 17.14%, and Mog Coin (MOG) at 16.15%.

Most Memorable Quotations

“Despite SEC Chair Gensler’s term ending on June 5, 2026, he will most likely resign by January/February 2025.”
Markus Thielen, CEO of 10x Research

“Although a full demand picture may not emerge for several months, ETH price could be sensitive to inflow numbers of the first days.”
Will Cai, managing director of Kaiko Indexes at Kaiko

“Those affected by the 2014 hacking operation have spent a decade waiting to be reimbursed, but now, with a lengthy bankruptcy process concluded, many will realize considerable profits.”
Bitstamp, cryptocurrency exchange

“The narrative of Bitcoin as an emerging store of value is simpler and largely understandable, while Ethereum’s value proposition is more complex and will require more time and greater educational efforts.”
Adrian Fritz, head of research at 21Shares

“Open source will ensure that more people around the world have access to the benefits and opportunities of AI, that power isn’t concentrated in the hands of a small number of companies, and that the technology can be deployed more evenly and safely across society.”
Mark Zuckerberg, CEO of Meta

“The SEC justifies this conduct on the grounds of relevance, burden, and privilege. None holds water.”
Coinbase, cryptocurrency exchange

Predictions and Future Trends

Traders See ETH’s $3.2K Pullback as a Buy While ETFs Build Steam

Traders suggest that Ether’s price fall to $3,209 has now put it in buy territory but warn that it may not last once the tremendous impact of exchange-traded funds (ETFs) comes into effect.

There are two major zones to buy, pseudonymous crypto trader Sheldon The Sniper told their 490,300 X followers in a July 24 post. He pointed to $3,300 and below as the current buy zone and added that the $3,097 buy zone has already passed.

Sheldon further predicted that Ether could reach $4,000 in the next week or two, reiterating two entry points as the ones you ride to the next all-time high breaks. Ether is trading at $3,209 at the time of publication at 5:50 pm UTC, down 7.68% over the past 24 hours, according to CoinMarketCap data.

The price has dipped another level below the closely watched $3,500 mark. Ether has fluctuated since the debut of spot Ether ETFs, which saw $106 million in net inflows. However, futures traders were expecting a larger price drop after the debut of Ether ETFs. The 7.68% decline liquidated $42.53 million in short positions, along with just $2 million in long positions, according to CoinGlass data.

FUD of the Week

Bitcoin Traders Warn BTC Price Can Still Dip to $62K or Even Lower

Bitcoin may be seeing impulsive upside, analysis warns as markets brace for key news events. In a July 26 post on X, popular pseudonymous trader Crypto Ed joined those cautioning over the latest Bitcoin price spike above $67,000. Bitcoin may be up by around 2% since the July 25 daily close, but not everyone believes in the short-term BTC price strength. For Crypto Ed, the rebound from local lows of $63,430 the day prior, which matched price behavior from the end of last week, is a surprise.

Bouncing stronger than I was expecting yesterday, looks impuls

The author does not own or have any interest in the securities discussed in the article.