The cryptocurrency market has shown signs of recovery in the final week of January 2024, with Bitcoin leading the way. The largest digital asset by market capitalization has regained the $41,000 level, after dropping below $30,000 earlier this month. This represents a 37% increase in value since the monthly low.
Bitcoin’s rally has been driven by several factors, including positive news from institutional investors, regulatory developments, and network upgrades. Some of the highlights include:
Tesla announced that it has increased its Bitcoin holdings by another $1.5 billion, bringing its total to $3.5 billion. The electric car maker also said that it will accept Bitcoin as a payment option for its vehicles in select markets.
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The US Securities and Exchange Commission (SEC) approved the first Bitcoin exchange-traded fund (ETF) in the country, allowing investors to gain exposure to the asset without having to buy or store it directly. The ETF, which tracks the performance of the CME CF Bitcoin Reference Rate, began trading on the New York Stock Exchange under the ticker symbol BTCR.
The Bitcoin network underwent a major upgrade, known as Taproot, which improves its scalability, privacy, and security. Taproot introduces a new signature scheme that allows for more complex and flexible transactions, such as multi-signature and smart contracts. Taproot also reduces the amount of data needed to verify transactions, making them faster and cheaper.
The global adoption of Bitcoin continued to grow, with more countries recognizing its legal status and facilitating its use. For instance, Brazil became the first Latin American nation to regulate Bitcoin as a legal tender, following the example of El Salvador. Meanwhile, India lifted its ban on crypto trading and allowed banks to offer services to crypto businesses.
These developments have boosted the confidence and optimism of the crypto community, as well as attracted new investors to the space. According to data from Glassnode, the number of active Bitcoin addresses reached a new all-time high of 38.6 million on January 25th, indicating a high level of network activity and user engagement.
The positive momentum of Bitcoin has also spilled over to other cryptocurrencies, lifting the overall market capitalization to over $1.2 trillion. Some of the best performers include Ethereum, which broke above $3,000 for the first time since September 2021; Cardano, which surged by over 50% after launching its smart contract platform; and Solana, which hit a new record high of $250.
As January comes to an end, the crypto market seems to have shaken off the bearish sentiment that dominated the previous months. However, challenges and uncertainties remain, such as regulatory risks, environmental concerns, and technical issues. Therefore, investors should exercise caution and due diligence when entering this volatile and unpredictable market.
UK Supreme Court Refuses Craig Wright Appeal
The UK Supreme Court has rejected the appeal of Craig Wright, the self-proclaimed inventor of Bitcoin, who was ordered to pay $5 billion worth of the cryptocurrency to the estate of his former business partner, Dave Kleiman.
The court upheld the decision of the High Court, which found that Wright had forged documents and lied in his testimony to claim ownership of more than a million bitcoins that he and Kleiman had mined together in the early days of the cryptocurrency.
Wright, who claims to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin, has been involved in a legal battle with Kleiman’s brother, Ira, since 2018. Ira Kleiman sued Wright for half of the bitcoins that he alleged Wright owed to his brother’s estate, as well as intellectual property rights related to Bitcoin.
Wright has repeatedly failed to prove his claim to be Nakamoto and has been accused of fraud and perjury by several experts and witnesses. He has also faced criticism from the Bitcoin community, who have rejected his attempts to assert control over the cryptocurrency and its underlying technology.
The UK Supreme Court’s ruling is a major blow to Wright, who may have to surrender a significant portion of his fortune and reputation. It is also a victory for Ira Kleiman, who has vowed to donate a portion of the recovered bitcoins to charity.
The case is not over yet, however, as Wright has indicated that he will seek to challenge the jurisdiction of the UK courts and pursue further appeals. He has also filed a lawsuit against Ira Kleiman in Florida, where he is seeking to reverse a default judgment that awarded Kleiman 50% of the disputed bitcoins.