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Top Stories of The Week
SEC to reject bids for spot Solana ETFs — Report
The United States Securities and Exchange Commission is set to reject applications in line for spot Solana exchange-traded funds (ETFs).
The agency has notified at least two of five issuers seeking approval for a Solana ETF, according to Fox News reporter Eleanor Terrett.
“The consensus here, I’m told, is that the SEC won’t entertain any new crypto ETFs under the current administration,” Terrett said on Dec. 6.
Several asset management firms have recently filed for SOL ETFs, aiming to provide investors with direct exposure to Solana’s market.
VanEck was the first asset manager to submit a 19b-4 application with the agency on June 27, shortly followed by 21Shares on June 28 and Canary Capital in late October. Following Donald Trump’s win in the Nov. 6 US presidential elections, Bitwise and Grayscale also applied for a SOL fund.
Ether price returns to $4K for the first time since March
The price of Ether has broken past the $4,000 price level following months of lackluster price performance — reclaiming levels not seen since March 2024.
According to data from CoinMarketCap, the price of Ethereum is up 2.8% on the day and has gained 10.7% over the past week.
Ether’s positive performance follows months of trading below its 200-day exponential moving average, which is a dynamic level of support. Currently, the relative strength index is approximately 71 and entering into overbought territory.
From August until early November, Ether experienced sideways price action until the current rally ignited on Nov. 6 in response to Donald Trump’s electoral victory.
Analysts believe that the price of Ether could reach $7,000 during the current market cycle, bolstered by record inflows from exchange-traded funds and a robust ecosystem of developers building on the Ethereum blockchain.
Bitcoin price hits $100K for first time in history
The price of Bitcoin reached $100,000 for the first time in history, marking a milestone for the cryptocurrency market after a year of significant growth.
Bitcoin hit the $100,000 price mark on Dec. 5, breaking a psychological level just weeks after reaching the $90,000 milestone on Nov. 12, according to TradingView.
Bitcoin also set a new all-time high of $104,000 at 3:08 am UTC — roughly 90 minutes after surpassing the $100,000 mark.
The year has seen more than $31 billion in net inflows from the spot Bitcoin exchange-traded funds in the United States, along with tightened supply from Bitcoin’s fourth halving in April.
Republican Donald Trump’s victory in the United States presidential election in early November, growing speculation of a strategic Bitcoin national reserve, and increased Bitcoin corporate adoption led by MicroStrategy’s Michael Saylor have also contributed to Bitcoin’s price rally.
Trump nominates Paul Atkins to replace Gensler as SEC chair
US President-elect Donald Trump has nominated pro-crypto Paul Atkins to replace Gary Gensler as the new chief of the Securities and Exchange Commission.
In a Dec. 4 announcement, Trump highlighted Atkins’ track record and experience as a former SEC commissioner. Trump wrote on Truth Social:
“Paul is the CEO and Founder of Patomak Global Partners, a risk management consultancy. As Co-Chairman of the Digital Chamber’s Token Alliance since 2017, he has worked on and studied the digital assets industry. A former SEC Commissioner from 2002-2008, Paul strongly advocated for transparency and protecting investors.”
The nomination of a pro-crypto SEC commissioner to replace Gensler was one of Trump’s promises to crypto voters during his campaign and a highlight of his keynote address at the Bitcoin 2024 conference in Nashville, Tennessee.
Hawk Tuah memecoin dumps 90% amid backlash over controversial launch
The launch of viral influencer Haliey Welch’s Hawk Tuah memecoin sparked outrage across social media as the newly launched token briefly pumped and then dumped rapidly following a controversial deployment involving allegations of snipers and insider wallets.
Welch has denied any insider sales or activity on behalf of her team or any affiliated entities.
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The Hawk Tuah memecoin was launched at 10:00 pm UTC on Dec. 4 and quickly rose to a peak market cap of $490 million.
The price of the token then plummeted and was trading at a valuation of $41.7 million at the time of publication, marking a 91% downturn in less than three hours, according to DEX Screener data.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $100,573, Ether (ETH) at $4,024 and XRP at $2.44. The total market cap is at $3.69 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Curve DAO Token (CRV) at 129.67%, Hedera (HBAR) at 106.03% and JasmyCoin (JASMY) at 88.70%.
The top three altcoin losers of the week are Raydium (RAY) at 12.23%, BONK (BONK) at 8.17% and Stellar (XLM) at 6.31%. For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most Memorable Quotations
“We’re sorry if you misunderstood our crypto cynicism to be a declaration of support for tradfi, because we hate that too.”
Bryce Elder, city editor, Alphaville at Financial Times
“Paul Atkins at the helm of the SEC will bring common sense back to the agency.”
Brad Garlinghouse, CEO of Ripple Labs
“So if you’re an asset that’s going to trade and behave in a memetic style, then the sky’s the limit because who knows how to value that?”
Murad Mahmudov, memecoin evangelist
“The foretold vast and purported suffocating assertion of regulatory dominion over an entire industry has not occurred, but they complain about that, too.”
The United States Securities and Exchange Commission
“We tried to stop snipers as best we could through high fee’s in the start of launch on Meteora.”
Haliey Welch, internet influencer
“Indeed, ARK Invest believes that Bitcoin is a much bigger idea than gold.”
Cathie Wood, founder and CEO of ARK Invest
Prediction of The Week
Ether poised to outperform Bitcoin: Bybit
Ether outshined Bitcoin in the cryptocurrency spot and derivative markets after the Nov. 5 United States presidential election and keeps gaining momentum, according to a Dec. 2 report by crypto exchange Bybit.
In November, Ether “gained significant traction against BTC, as reflected by the sharp drops in the ratio between their spot prices,” Bybit said in its November 2024 “Volatility Review,” co-created by market researcher Block Scholes.
Growing demand for ETH options also indicates “[t]raders are increasingly favoring ETH,” Bybit said in a statement.
Ether’s outperformance accelerated after US Securities and Exchange Commission Chair Gary Gensler announced plans to step down on Nov. 21, bringing “additional momentum and attention” to the asset, according to the report. Since then, “[t]his most recent move has been sustained.”
Bybit said ETH’s mounting dominance is “clearest in spot,” where the ratio of ETH to BTC has risen from around 0.0325 on Nov. 21 to more than 0.04 as of Dec. 6, according to TradingView.
FUD of The Week
FDIC asked banks to ‘pause’ crypto activities — Court docs
Court documents filed in a Freedom of Information Act lawsuit against the United States Federal Deposit Insurance Corporation (FDIC) showed the US regulatory body asked certain financial institutions to pause crypto banking activities.
In a Dec. 6 filing in the US District Court for the District of Columbia, the court released “pause letters” sent by FDIC officials to the boards of directors for different US banks, whose names were redacted.
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According to the letters sent in 2022, the FDIC requested the institutions “pause all crypto asset-related activity” in response to the uncertain regulations around digital assets.
“The FDIC will notify all FDIC-supervised banks at a later date when a determination has been made on the supervisory expectations for engaging in a crypto asset-related activity, including the need for any regulatory filings,” said some of the letters.
Potential charges Haliey Welch could face if SEC probes HAWK launch
The disastrous launch of influencer Haliey Welch’s Hawk Tuah (HAWK) memecoin this week was marred by allegations of sniping and insider trading, with the token plunging 91% in just three hours.
Welch has denied these claims, and authorities have not announced any investigation.
However, if the United States Securities and Exchange Commission or the Department of Justice (DOJ) decide to investigate the controversial launch, Welch and her team could face significant legal scrutiny.
According to Yuriy Brisov, partner at law firm Digital and Analogue Partners, the SEC can pursue civil charges for securities fraud, alleging misrepresentation or deceit in the sales of securities if HAWK qualifies as a security under the Howey test. The DOJ might consider criminal charges like wire fraud or money laundering, especially if there’s evidence of intentional deception or financial misconduct.
On Dec. 4, Welch launched the HAWK memecoin, which briefly surged to a peak value of $490 million before plummeting over 90% to $30 million in a few hours.
Sky faces scrutiny over potential $756M exploit flaw
Sky, formerly known as MakerDAO, is facing criticism for its reliance on an externally owned account (EOA) to manage $756 million in USD Coin reserves within its lite peg stability module (PSM).
Concerns were raised by an X user about the protocol’s reliance on an EOA to manage a substantial portion of its reserves, amounting to $756 million in USD Coin. Critics argue this custodianship model could leave funds vulnerable to potential exploits or insider misuse.
After its recent rebrand to Sky and concerns surrounding the ability to implement a freeze function in the future, the risk of a breach or misuse of these EOA-managed funds could further impact the protocol’s reputation and user trust.
Magazine Stories of The Week
‘Normie degens’ go all in on sports fan crypto tokens for the rewards
“Many people spend hours on social media or playing Candy Crush — I spend time on fan tokens. What’s the problem?” asks one sports token superfan.
‘China’s MicroStrategy’ Meitu sells all its Bitcoin and Ethereum: Asia Express
‘Asia’s MicroStrategy’ Meitu has sold all of its 940 Bitcoin and 31K ETH — passing the title to Japan’s Metaplanet with its 1100 BTC reserve. Asia Express
Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?
Roadmap headwinds and FUD stalled Ethereum’s price performance in 2024, but there are signs that it may turn a corner in the new year.
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