Crypto Bites | Recap 02072025
Hello crypto fren,
The crypto world is abuzz today with significant developments pointing towards a bullish summer, especially for Bitcoin, and increasing mainstream adoption of digital assets. From landmark ETF approvals to strong price predictions and real-world payment integrations, here's a recap of the top crypto news.
Spot Altcoin ETFs Gain Momentum with Grayscale Approval
In a groundbreaking move, the SEC has officially approved Grayscale's plan to convert its Digital Large Cap Fund (GDLC) into a spot ETF. This approval is a monumental step for the crypto market, as GDLC offers diversified exposure to major cryptocurrencies including XRP, BTC, ETH, SOL, and ADA.
This decision is being hailed as a strong signal for the future approval of individual spot altcoin ETFs. Industry experts are now projecting a 95% chance of SEC approval for spot ETFs of XRP, SOL, and LTC this year. The GDLC, modeled on the CoinDesk 5 Index, could serve as a "test run" for the SEC, paving the way for more specific altcoin ETFs.
While U.S. regulatory bodies have taken their time, Canadian regulators have already shown a more agile approach, approving XRP spot ETFs in June. GDLC trading is expected to commence soon, following its operational setup and exchange approval, building on Grayscale's successful Bitcoin Trust ETF launch in January 2025. This fund's structure, allowing daily share creation and redemption, aims to alleviate the premium/discount issues often seen with older closed-end crypto funds.
Bitcoin's Big July: New All-Time Highs on the Horizon?
Bitcoin is gearing up for what analysts predict could be a historic July. Market observers expect Bitcoin to hit a new all-time high this month, potentially reaching $116,000, bolstered by historical July gains.
A substantial $64 billion is projected to flow from altcoins into Bitcoin this quarter, nearly matching the combined market capitalization of Tron, Dogecoin, and Staked Ether. This anticipated capital rotation is expected to drive Bitcoin's market dominance up by approximately 2% between July and September, fueling its price rally. Traders on Deribit are actively betting on Bitcoin surpassing $112,000 by July 25, with an 81% chance of reaching new highs before October. Currently, Bitcoin is trading at $107,399, up 0.8% in the past 24 hours, while Ethereum remains stable at $2,444.
Furthermore, analysts forecast Bitcoin could soar to $125,000 to $136,000 in July, driven by easing geopolitical tensions and favorable liquidity conditions.
$22 Trillion Fed Price Earthquake: M2 Money Supply and Bitcoin
Despite trading sideways since May, Bitcoin's bullish predictions are being reinforced by the massive amounts of sidelined capital. The U.S. M2 money supply has hit a record $22 trillion, a factor many analysts believe could trigger a significant Bitcoin price breakout as this vast liquidity flows into digital assets.
Historically, Bitcoin's price has shown a strong correlation with the growth of the M2 money supply, suggesting continued upward movement if liquidity remains high. Crypto influencer Anthony "Pomp" Pompliano even predicts Bitcoin could reach $150,000 by year-end if current money supply trends persist. The Federal Reserve's cautious stance on interest rates, influenced by trade tariffs and inflation expectations, adds another layer of complexity, but the overall sentiment points to a "big" July for Bitcoin, with BlackRock's growing influence in the crypto market also playing a key role.
Three Reasons for Bitcoin's Predicted $136,000 Surge
Bitwise further corroborates the bullish outlook for Bitcoin, forecasting a 30% rally in July, attributing this to three key factors: geopolitical tensions, accelerating institutional buying, and global rate cuts.
Historical data indicates that Bitcoin often experiences strong rebounds after geopolitical shocks, suggesting a potential price of around $136,000 if similar patterns hold. Analysts see a 63% chance of Bitcoin hitting a new all-time high before August, and an 81% chance before October. Institutional accumulation is picking up steam, with major players like Michael Saylor’s MicroStrategy and BlackRock’s Bitcoin ETF holdings creating supply pressure. Additionally, central banks' rate cuts over the past year have injected more liquidity into the markets, contributing to Bitcoin's resilience amidst economic uncertainty. Despite inherent volatility, positive ETF flows and favorable macroeconomic trends strongly suggest a potential breakout for Bitcoin this month.
Binance Pay Expands Crypto Payments Across the French Riviera
Beyond price action, crypto adoption continues to grow in real-world applications. Binance Pay has partnered with French fintech Lyzi to enable over 80 businesses across the picturesque French Riviera to accept cryptocurrency payments. This significant rollout, spanning cities like Cannes, Nice, Antibes, and Monaco, will seamlessly integrate digital assets into the region's vibrant luxury tourism and retail economy.
This partnership empowers both visitors and locals to pay with stablecoins and other cryptocurrencies at a wide array of establishments, including hotels, restaurants, beach clubs, luxury retailers, and service providers. Customers can simply scan a QR code and confirm a transaction, enjoying instant settlement without incurring gas fees. Merchants, in turn, benefit from immediate euro settlement through the system's integration, marking a major step towards broader crypto accessibility in daily commerce.
Today's news paints a picture of a rapidly evolving crypto landscape, driven by institutional interest, macro-economic tailwinds, and increasing utility. The stage is set for an exciting period in the digital asset space.
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