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Key Takeaways
- Bitcoin reclaimed $53,000 after more than two years Monday.
- Reddit revealed it owns bitcoin and ether in regulatory filings ahead of its initial public offering.
- Former U.S. President Donald Trump seemingly softened his stance on cryptocurrencies.
- The Federal Reserve released an analysis of the U.S. dollar-denominated stablecoin market.
- The U.S. Department of Energy has temporarily suspended an energy consumption survey of bitcoin miners after a lawsuit.
What Happened in Crypto Markets Last Week?
Bitcoin (BTC) started the week on a strong note, rising 3% Monday afternoon to top $53,000, its highest level since December 2021. Reddit’s disclosure of its cryptocurrency holdings, and former President Donald Trump’s seemingly softer stance on bitcoin last week may have added to the price momentum for the largest cryptocurrency.
Reddit’s Cryptocurrency Stash
As it gears up for an initial public offering (IPO), social media platform Reddit unveiled its ownership of bitcoin and ether (ETH) in a filing with the U.S. Securities and Exchange Commission last week. That adds to the list of mainstream companies such as MicroStrategy (MSTR) and Tesla (TSLA) that own bitcoin.
But that’s not all of Reddit’s crypto exposure. The company also has some of Polygon’s Matic (MATIC) for use in specific virtual goods transactions. Although the exact number of tokens remains undisclosed, Reddit clarified in the filing that the net value of these digital assets is considered “immaterial.” This strategic move underscores Reddit’s longtime engagement with cryptocurrencies and blockchain technology, which began as far back as 2014.
Trump Softens Bitcoin Stance
Former President and Republican candidate Donald Trump seemingly softened his stance toward cryptocurrency last week. In a recent interview on Fox News, Trump admitted that bitcoin has gained popularity, while still expressing his preference for the U.S. dollar.
This seems a bit of a walkback from the hardline anti-crypto stance he posted on Twitter (now X) in 2019.
USDC Dumps Tron
Stablecoin issuer Circle will cease to support its USD Coin (USDC) stablecoin on the Tron blockchain network, citing alignment with its commitment to maintaining the trustworthiness, transparency, and security of USDC.
Fed’s New Report On Stablecoins
On Friday, the Federal Reserve released a report on stablecoins, which was particularly focused on how the market operates during times of stress. Notably, the report found that, despite their assumed similarities, the USDC and Tether (USDT) stablecoins operate as their own distinctive markets.
“Even stablecoins that might appear to operate similarly on paper—fiat-backed stablecoins like USDT and USDC, for example—are distributed through primary markets with distinct characteristics in terms of frequency, number of participants, and response to external shocks,” the report said.
The report, which also covered BUSD and DAI, indicated further study of the stablecoin market is necessary, as these assets maintain a pivotal role in decentralized finance (DeFi).
Bitcoin Miners Get Energy Department To Pause Survey
The U.S. Department of Energy (DOE) has agreed to temporarily suspend its emergency survey on energy consumption by cryptocurrency miners after a lawsuit by bitcoin miner Riot Platforms (RIOT) and the Texas Blockchain Council.
The DOE’s statistical branch—the U.S. Energy Information Administration (EIA)—has paused its mandatory survey for a month and will safeguard the data already collected since Feb. 5. The lawsuit is aimed at halting the survey, citing potential harm to businesses from disclosing sensitive information.
What To Expect From Crypto Markets This Week
So far this week, its been a mixed bag. While bitcoin continued its onward march, there are some pockets of not-so-great news.
Cryptocurrency exchange BitForex has plunged into darkness amid reports of a $57 million outflow. According to reports, customers are currently unable to access the exchange as withdrawals ceased processing. The abrupt disappearance of the exchange’s online presence follows the departure of former CEO Jason Luo in January. Previously, the exchange faced allegations of faking trading volume and regulatory scrutiny for operating without a license in Japan.
Analysts will also be tracking spot bitcoin exchange-traded fund (ETF) inflows this week, as a drop in activity last week coincided with a stalling of the crypto asset’s recent price rise. Despite the relative drop in activity, last week was the fourth straight week of positive net inflows for digital asset investment products, according to CoinShares.