Weekly Crypto Wrap: 15th August 2024

TLDR

• Learn about crypto with BTC Markets’ beginners guide.
• It's tax time: watch our latest webinars featuring Crypto Tax Calculator & Syla.
• Bitcoin price jumps as US$2 billion in Mt. Gox funds moved.
• El Salvador announces US$1.6 billion investment to kickstart ‘Bitcoin City’.
• Bitcoin ETFs set to surpass Satoshi's BTC holdings.
• Ethereum ETFs see first positive weekly flows since launch.
• Ethereum L2 ecosystem sets new record with 12.4m transactions in one day.

BTC Markets announcements

BTC Markets tax webinar featuring Crypto Tax Calculator and Syla.

Unpacking the ATO’s latest guidance on crypto taxes for DeFi with Crypto Tax Calculator.

Our Head of Finance, Charlie Sherry, catches up with Patrick McGimpsey from Crypto Tax Calculator to talk about the latest guidance from the Australian Taxation Office (ATO) on the taxation of Decentralised Finance (DeFi).

Watch the video here.

How to simplify your crypto tax reporting in 2024 with Syla.

Charlie also chats with Syla’s Technology Co-founder, Nick Christie, to address a long-standing challenge for cryptocurrency investors: accurately declaring and managing taxes on their digital assets.

Watch the video here.

BTC Markets partners with Syla for crypto tax reporting solution.

BTC Markets has partnered with Syla to simplify cryptocurrency tax reporting for Australian users. This collaboration integrates Syla's advanced tax reporting solutions, providing a seamless and localised approach to managing crypto taxes.

The partnership addresses the challenge of accurately declaring and managing taxes on digital assets, benefiting both new and seasoned users.

Click here to view the discount codes.

Learn about crypto with BTC Markets beginners guide.

Recently, we announced the launch of our new Learn Section, designed specifically for beginners eager to learn about the world of cryptocurrencies.

At BTC Markets, we understand that the crypto space can be daunting, especially for newcomers. That's why we've created a comprehensive educational hub to help you navigate this vibrant landscape with confidence.

What you’ll find in our Learn Section:

• Introduction to cryptocurrencies: Explore the fascinating world of cryptocurrencies and their potential role in the future of finance.
• Getting started in crypto: Learn the basics about crypto wallets, exchanges and creating an account.
• How to buy and sell crypto: Learn how to buy, sell, and store crypto on an exchange, and secure your assets with best practices.
• How to stay safe in crypto: Stay safe in the crypto space by understanding the common scams and how to avoid them.
• Crypto tax requirements: Understanding the regulatory landscape and tax reporting requirements for crypto.

Visit our Learn Section today and start your journey towards becoming a confident and informed crypto enthusiast. With BTC Markets, the future of finance is at your fingertips.

Explore now.

BTC Markets x Ticker News ‘Crypto Corner’ featuring Jamie Coutts.

Real Vision’s Chief Crypto Analyst, Jamie Coutts catches up with BTC Markets CEO, Caroline Bowler in our latest episode of Ticker News ‘Crypto Corner’. Tune in as they discuss the transformative shift in finance as crypto emerges as a new asset class.

They investigate the growing significance of digital assets like Bitcoin and crypto exchange traded products (ETPs), which now have a market cap nearing US$100 billion.

Watch now on YouTube or Ticker News.

Mobile app fiat and crypto withdrawals.

Did you know that you can now easily withdraw fiat and crypto assets using the latest version of our mobile app?

This feature allows you to effortlessly manage your withdrawals and track transfer statuses through a comprehensive history list.

Update your mobile app from the App Store (iOS) or Google Play Store (Android).

Discover more about this exciting mobile app update here.

BTC Markets in the news

Australian Financial Review: What to do with your money in market meltdowns.

The chief executive of cryptocurrency exchange BTC Markets, Caroline Bowler, says there may be more to the crypto sell-off than meets the eye.

“It appears that crypto investors are reinvesting in their preferred tokens rather than a pure risk-off sell-off in the asset class.”

Read the full article here.

State of crypto

The weekly trading stats as of Monday, August 12th at 10:00 am AEST, based on data from TradingView in USD.

Bitcoin price jumps as US$2 billion in Mt. Gox funds moved.

The price of Bitcoin has surged following the movement of US$2 billion worth of Bitcoin previously held by the collapsed Mt. Gox exchange. On Tuesday, Arkham Intelligence reported that a crypto address most likely associated with BitGo, which is involved in repaying Mt. Gox's defrauded users, moved over 33,000 BTC to another wallet. This move was likely a preparatory step for upcoming repayments to affected customers.

As a result of these large on-chain transactions, Bitcoin's price increased from around US$59,500 to over US$61,000 within an hour, reflecting a 3% rise. This price increase is noteworthy given that Bitcoin had recently dipped below US$50,000. Mt. Gox, once a major Bitcoin exchange based in Japan, was hacked in 2014, leading to the theft of 850,000 BTC. The exchange filed for bankruptcy, and only recently have affected users begun receiving their funds under a rehabilitation plan approved in 2021. Despite the recent price rise, Bitcoin remains below its peak of nearly US$74,000 back in March 2024.

Trade BTC/AUD on BTC Markets.

El Salvador announces US$1.6 billion investment to kickstart ‘Bitcoin City’.

El Salvador has announced a historic US$1.62 billion investment from Yilport, a Turkish company, to revamp two of its seaports, marking the largest private investment in the country. This deal will see Yilport and the Salvadoran government jointly operate the ports for the next 50 years.

One port, Acajutla, handles major exports like coffee and sugar, while the other, La Union, is notable as it is near the proposed site for Bitcoin City, a planned tax-free city that would fund itself through Bitcoin mining powered by its regional volcanoes. Though Bitcoin City was initially planned to be funded through Bitcoin bonds, delays have led El Salvador to seek alternative funding sources, including partnerships and special visa programs.

The deal is characterised as a Bitcoin City infrastructure investment by Max Keiser, a member of El Salvador’s National Bitcoin Office. The country currently holds approximately 5,840 BTC, worth around US$345 million, and continues to add 1 BTC to its holdings every day.

Bitcoin ETFs set to surpass Satoshi's BTC holdings.

U.S. spot Bitcoin ETFs, launched earlier this year, are rapidly accumulating Bitcoin and are on track to collectively surpass the amount believed to be held by Bitcoin’s pseudonymous founder, Satoshi Nakamoto. Satoshi, who mined the first Bitcoin in 2009, is thought to have accumulated around 1.1 million BTC based on the "Patoshi pattern" theory. Currently, U.S. spot Bitcoin ETFs hold close to 900,000 BTC.

Top funds, including BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale, have attracted billions of dollars, offering a regulated way for investors to gain Bitcoin exposure. BlackRock leads with over 347,994 BTC, while Grayscale holds 232,542 BTC. Bloomberg ETF analyst Eric Balchunas predicts that these ETFs will surpass Satoshi's holdings in October 2024, with BlackRock expected to become the largest holder by late 2025. The rapid growth of these ETFs reflects significant investor demand for a safer and regulated means of Bitcoin investment.

Source: TheBlock.co

Ethereum ETFs see first positive weekly flows since launch.

For the week beginning August 5, the nine newly launched US-based spot Ethereum ETFs saw their first week of positive net inflows since their July 23 launch, totalling US$104.8 million. This occurred despite a 23% decline in the price of Ether (ETH) since early August.

Six of the nine funds experienced net positive flows, led by BlackRock’s iShares Ethereum Trust, which saw US$188.4 million in inflows, bringing its total assets to over US$900 million. Fidelity's Ethereum Fund followed with US$44.65 million, reaching US$342 million in total assets.

Last week, four other Ethereum ETFs saw positive net inflows: Grayscale’s Mini Ethereum Trust (US$19.8 million), VanEck (US$16.6 million), Bitwise (US$11.7 million), and Franklin (US$3.7 million). As of August 9, the total net assets across all nine ETFs reached US$7.3 billion, with US$1.9 billion traded during the week. However, Grayscale’s main Ethereum Trust saw a significant outflow of US$180 million, dragging the aggregate inflow lower.

Additionally, efforts are underway to introduce options trading for these Ethereum ETFs, with the NYSE American proposing a rule change to list and trade options contracts for three ETH ETFs from Grayscale and Bitwise.

Trade ETH/AUD on BTC Markets.

Ethereum L2 ecosystem sets new record with 12.4m transactions in one day.

Ethereum’s layer-2 (L2) scaling ecosystem has achieved a new record, processing 12.42 million daily transactions on August 12, driven largely by the memecoin mania on Coinbase’s L2 blockchain, Base. This marks a significant 140% increase in daily transactions since the start of 2024. Data from Growthepie, an Ethereum layer-2 block space analytics platform, highlights that this surge is primarily due to Base’s rapid growth, with transactions peaking at over 4 million in late July. Base blockchain metrics confirm a 700% increase in daily transactions over the past six months, largely fuelled by memecoin activity as creators moved to more cost-effective and efficient chains.

Layer-2 networks have also surpassed Solana and Binance Chain in stablecoin holdings, with 150% and 94% more stablecoins than those platforms, respectively. Meanwhile, Ethereum's layer-1 daily transactions remain stable at around 1.1 million, with gas fees dropping to yearly lows, allowing Tether to mint 1 billion USDT for only 53 cents on August 13.

Crypto Fear & Greed Index

Source: alternative.me

The week ahead: economic events

August 15th: China Industrial Production and Retail Sales YoY. United Kingdom GDP Growth Rate, GDP Annual Growth Rate and Monthly GDP MoM. U.S. Retail Sales.

August 16th: United Kingdom Retail Sales MoM. United States Building Permits.

August 17th: United States Michigan Consumer Sentiment.

August 20th: Australia Interest Rate. Canada Inflation Rate.

August 21st: Japan Balance of Trade.

August 22nd: United States Fed Funds Interest Rate.

Source: trading economics

Scam awareness

Unmasking the most common crypto scams

The rise of cryptocurrencies has brought about revolutionary opportunities and possibilities. However, with every technological advancement comes a flip side – an increased risk of scams and fraudulent activities.

Scammers are becoming more cunning and sophisticated in their tactics. Let’s look at the most common crypto scams.

Read the full blog here.

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

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Weekly prices are accurate as of 10:00 AM AEST on 12/08/2024.