Cryptocurrency Week: Donald Trump's Bitcoin, Ethereum Funds, New Treasury Department Leadership
This week, Bitcoin hit $66,000, hitting monthly highs, and sentiment is starting to turn positive. Donald Trump survived an assassination attempt and emerged strongly as a pro-crypto president.
Finally, the German government ran out of Bitcoin, bringing relief to the cryptocurrency ecosystem. Moreover, the launch of the Ethereum Exchange Traded Fund (ETF) is just around the corner.
Assassination attempt on Donald Trump
The week in the cryptocurrency world began with a shocking event – former US President Donald Trump narrowly escaped an assassination attempt. While attending a campaign event in Pennsylvania, Trump was struck in the upper part of his right ear.
He was quickly evacuated to safety and received medical treatment for his injuries. This incident also affected the financial markets. After the attack, Bitcoin rose from around $60,000 to $66,000.
“Based on Bitcoin’s reaction so far, it looks like markets will start pricing in a complete Trump win,” said Will Clemente, co-founder of Reflexivity Research.
Trump's relationship with pro-crypto policies may have contributed to this increase. Meanwhile, betting platforms like Polymarket continue to favor Trump over Joe Biden, whose presidential odds have dropped following a recent Covid-19 diagnosis.
Launch of Ethereum ETFs
Furthermore, industry leaders expect that Ethereum exchange-traded funds (ETFs) will begin trading on July 23. Bloomberg's Eric Balchunas claimed that the SEC has contacted issuers for final amendments to their S-1 forms.
Barring last-minute complications, these funds will offer a new way for investors to interact with Ethereum. Prominent financial players such as BlackRock, VanEck, and Franklin Templeton are expected to receive approval from the SEC to move forward with their ETF offerings.
Fund issuers also released details of fees. Most funds' fees range between 0.19% and 0.25%. However, Grayscale Ethereum Trust has the highest fee, i.e. 2.5%.
German government concludes Bitcoin sales
According to Arkham Intelligence, the German government has sold its entire stock of Bitcoin. The move followed the previous seizure of 50,000 Bitcoin. Cryptocurrency expert Michael van de Poppe noted that such liquidations are usually under legal obligations and are not affected by market conditions.
Although the cryptocurrency community breathed a sigh of relief, some observers speculate that Germany may regret this decision in the future. However, German officials stress that the sales were carried out sensitively to avoid major market impacts.
Possible changes in the leadership of the US Treasury
Potential changes at the US Treasury may impact financial regulations. Donald Trump suggested in an interview with Bloomberg that he might nominate Jamie Dimon, CEO of JP Morgan, as the next Treasury Secretary.
“Jamie Dimon, you know, was very negative and now all of a sudden he changed his tune a little bit,” Donald Trump said.
This comes after a meeting with senior business figures, hinting at a possible consensus in Dimon's views on Bitcoin. At the same time, FDIC Chair candidate Christie Goldsmith Romero expressed her support for banks serving cryptocurrency companies. If her appointment is confirmed, this position could represent a major policy shift, which could ease current pressures on the sector.
Cryptocurrency exchange Wazirx lost $235 million to hackers
On Thursday, hackers stole about $234.9 million from Indian cryptocurrency exchange Wazirx. Following the incident, the exchange suspended withdrawals and initiated additional investigations.
Web3 security experts like Cyphers believe that the famous Lazarus group may be responsible for the incident.
“The use of TornadCash to fund transactions is indicative of methods used in previous high-profile attacks. Although it is too early to definitively link this incident to the Lazarus Group, the similarities are disturbing. Cyphers is carefully analyzing the situation,” Cyphers CEO Didi Lavid told BeInCrypto.
In related news, CDK Global cyberattackers reportedly received over $25 million in Bitcoin as ransom. This event disrupted operations at approximately 15,000 U.S. auto dealerships, highlighting ongoing cybersecurity threats.
The ransom payment was tracked through blockchain analysis, highlighting the traceability of cryptocurrency transactions despite their perceived secrecy.
Top 10 cryptocurrencies this week
Finally, this week the cryptocurrency market saw strong growth, with the total market capitalization reaching $2.34 trillion. Most of the top 10 cryptocurrencies rose by double-digit percentages. Bitcoin is up 11.52%, while Ethereum is up 10.39% over the past seven days.
