Bitcoin suffered a severe setback on Friday as crypto bank Silvergate’s imminent bankruptcy became known. Other crypto assets also fell as investors pondered what the news meant for the broader market.. This was shared with Cointelegraph in Spanish, Simon Peters, Expert Analyst in Cryptoactives of the eToro platform.
Peters explained: “Bitcoin started last week trading above $23,200, reaching over $23,600 on the eToro platform last Wednesday. However, when the Silvergate news broke on Friday, the market was hit hard and the price of Bitcoin fell below $22,250.”.
“Ether, meanwhile, started the week around $1,625, before trading above $1,650. On Friday, however, the crypto asset crashed and fell below $1,550, where it remains trading in a relatively tight range.Simon added.
Ethereum releases network upgrades
Ethereum launched the network update “EIP-4337” over the weekend, a new token standard first proposed in September 2021.
This update has allowed Ethereum wallets to become ‘wallets’smart‘ and enables a number of features via smart contracts, such as lost key recovery. Other advantages such as automated payments and time-based spending limits are now also possible.
“Ethereum as a network has proven time and time again to be among the most advanced in the crypto space in terms of adaptability to demand and flexibility. The network looks more and more like a sophisticated financial ecosystem for user payments and offers compelling arguments for its use.”, remarks Peters, who also added: “The upcoming update, dubbed the Shanghai update, will allow users to withdraw ETH after staking, this could also be a game changer. It is scheduled to appear sometime this month and could have interesting implications for the market.”.
TBD Launches Bitcoin Network Improvements”lightning”
TBD, part of the Block led by Jack Dorsey, has launched a new project called “c=” (c equals) aimed at improving the services and tools of the so-called “lightning network”. The changes seek to improve the reach of the network with updates to the liquidity and routing services.
“The Bitcoin lightning network was created as a layer two solution to the Bitcoin blockchain to improve the ease of use of Bitcoin as a payment network and other functionalities. While networks like Ethereum have teams of developers that work in coordination, Bitcoin is totally decentralized in the sense that it does not have a clear creator or group behind it.says Peters.
Regarding this Simon opined: “Developers like Dorsey have a vested interest in improving the token’s use case and functionality, hence the layer two additions. Both Bitcoin and Ethereum are starting to get closer when it comes to offering complete digital financial ecosystems. Although work is still in progress, we could see changes in the adoption drivers as the functionality and ease of use of both improves.”.
Brazil registers a fiscal rebound in the crypto-asset market
Peters noted: “The Brazilian tax authorities offer an interesting early insight into crypto market movements, as they regularly collect tax information. By January, the country’s tax collectors witnessed a rebound in crypto market transactions of more than 10% compared to December 2022.”.
“However, the total level of transactions has yet to reach 2022 highs in the country, but it does give a glimpse of regional investors returning to the market after a volatile second half in 2022.” emphasizes Simon.
Finally, the Crypto Assets Expert said: “Looking at the most traded crypto assets, Tether’s USDT stablecoin ranked first as a key interconnection token for investors in the region. The stablecoin also has local benefits for Brazilians, as it protects purchasing power against the US dollar and allows them to avoid expensive fees.”.
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