Crypto Roundup 22 Dec: Bitcoin, Solana Approach Yearly Highs in Surges

coin.gabbar - 2023-12-25 11:53:27

Crypto News Key Highlights:
El Salvador's Congress approved a migration law granting expedited citizenship to foreigners making Bitcoin "donations" for government initiatives. President Bukele's New Ideas party supported the reform, emphasizing the president's development goals. The law, effective soon, complements El Salvador's unique integration of cryptocurrency.

As the US SEC holds a joint conference call with ETF filers, speculation rises about potential approvals before the January 10, 2024 deadline. Seven of 14 ETF seekers have shifted to a cash-only model. Analysts, like James Seyffart, anticipate approvals between January 8-10, with possibilities of BlackRock and Grayscale being among the first to receive approval.
Solana's (SOL) relentless rally sees a 17.15% surge, nearing $100, with a market cap of $41.7 billion. The surge propels SOL to the fourth-largest cryptocurrency, surpassing Binance Coin (BNB). Notably, SOL's trading volume and open interest spike, underscoring its prominence. However, there are indications of significant investors selling SOL, as mentioned by BitMEX co-founder Arthur Hayes, who humorously claimed a divine message prompted him to shift from SOL to Ethereum (ETH).

The SEC reportedly held a rare joint conference call with Bitcoin ETF filers, emphasizing the need for cash creates. This move ensures issuers convert all "in-kind redemptions" from their ETF filings, directing them to convert Bitcoin to cash before trading shares. The SEC's cautious approach may signal increased dialogue and risk mitigation ahead of potential approval.

Elon Musk's X is set to launch in-app payment services on its social media platform around mid-2024, pending money transmitter license approvals. Musk, speaking to Cathie Wood, mentioned bureaucratic delays but expressed confidence in the license process. Despite Musk's diminishing focus on crypto, Tesla continues to hold $148 million in Bitcoin.

Cryptocurrency analyst Will Clemente suggests Coinbase (COIN) shares could serve as a traditional finance "index play" for broad exposure to the crypto sector. Despite Wall Street perceiving Coinbase mainly as an exchange, Clemente notes its diverse revenue streams, while Bitwise predicts Coinbase's revenue doubling in 2024.

Traders remain cautious as Bitcoin struggles around $44,000, anticipating a potential correction to $41,000. Despite increased odds of a spot Bitcoin ETF approval, concerns arise about a "buy the rumor, sell the news" scenario. Market indicators, including BTC futures premium and options market data, suggest a balanced outlook amid regulatory uncertainty.