Crypto Market Cap Hits Highest Level Since May 2022
The total cryptocurrency market capitalization increased by 0.75% to $1.617 billion from Monday to Saturday morning. The progress towards a BTC spot ETF market boosted buyer demand for cryptocurrencies. However, fake news and increasing scrutiny of the US crypto space made for a volatile week.
The total crypto market capitalization rose to a Tuesday high of $1.726 billion before falling to a Wednesday low of $1.501 billion. Significantly, the cryptocurrency market capitalization reached levels of $1.7 trillion for the first time since May 2022.
BTC-Spot ETF Highs and Lows
Progress toward a BTC spot ETF market continued in the week ending January 5. However, there were ups and downs for btc and the crypto market in general.
On Wednesday, rumors The SEC could reject or postpone BTC spot ETF applications that sent the cryptocurrency market into a tailspin. BTC fell 4.42% on Wednesday but recovered from a session low of $41,495, ending the day at $43,028.
James Seyffart, ETF analyst at Bloomberg Intelligence managed rumors while providing updates on activity related to the BTC Spot ETF. On Friday, Seyffart noted that all 11 BTC spot ETF issuers remained in the Cointucky Derby, adding that they are not over the finish line, but close.
However, there was another BTC spot ETF curveball at the end of the session on Friday. The comment window was open until the end of Friday's session. Better Markets submitted comments shortly before the comment window closed and the approval window opened. Significantly, the president and CEO of Better Markets is reportedly closing with SEC Chairman Gary Gensler.
Uncertainty over the comment letter's influence on the SEC tested demand from BTC buyers and the broader market. Despite the ups and downs, BTC remains in positive territory. From Monday to Saturday, BTC rose 3.77% to $44,009.
Senator Elizabeth Warren and the anti-cryptocurrency army
On Thursday, the U.S. House Financial Services Committee announced the next round of subcommittee hearings. One caught the attention of the crypto community. On January 10, the Capital Markets and Digital Assets, Technology and Financial Inclusion subcommittee will hold a hearing titled "Regulatory Whiplash: Examining the Impact of FSOC's Evolving Designation Framework on Innovation."
Amicus Curiae attorney John E. Deaton responded to the announcement on X (formerly Twitter), saying,
"If you want someone to testify who actually represents the interests of token holders, not cryptocurrency companies, and who has taken on the SEC and helped expose the extent to which Gary Gensler is NOT protecting investors, I offer my services as a volunteer.
Attorney Deaton represented 75,000 XRP holders in the SEC case against Rippleresulting in Programmatic Sales of XRP decision.
SEC v. Coinbase: SEC asks judge to consider Terraform Labs ruling
The Securities and Exchange Commission (SEC) asked Judge Katherine Failla to consider the recent case SEC v Terraform Labs decision in it SEC vs. Coinbase (CURRENCY) case. January 4th presentationThe SEC argued that Terraform Labs' ruling further supports its opposition to Coinbase's Sentencing Motion.
Significantly, the SEC noted,
โThe Terraform court issued an opinion on the parties' cross motions for summary judgment, granting summary judgment for the SEC on its claims that the defendants offered and sold unregistered cryptoasset securities in violation of Section 5 of the Securities Act of 1933. In doing so, the Terraform court ruled in favor of the SEC on issues relevant to consideration of the defendants' motion in this case.โ
Coinbase shares gave ground on Friday, falling 1.09% to $153.98. In a brutal week for NasdaqPublicly traded stock Coinbase ended the week down 11.5%. The Nasdaq Composite Index ended the week ending January 5 down 3.25%.
In other news
US Jobs Report: BTC and the broader crypto market reacted to a hotter-than-expected situation US Jobs Report. Wage growth unexpectedly rebounded in December, with the unemployment rate unchanged at 3.7%. Average hourly earnings increased 4.1% year over year compared to 4.0% in November. Nonfarm payrolls increased 216,000 compared to 173,000 in November. BTC retreated to below $43,500 before ending the day at $44,264.
