Hello Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Bitcoin Rally Surpasses $50K Amid Halving Speculation: Bitcoin breaks the $50,000 barrier fueled by institutional demand, marking a two-year high.

2. Franklin Templeton Enters Ethereum ETF Race: Franklin Templeton files for a spot Ether ETF with plans to incorporate staking mechanisms, aiming to enhance investor returns.

3. SEC Chair Gensler Addresses False Tweet Incident: SEC Chair Gary Gensler responds to a cybersecurity breach involving a false tweet from the SEC's official account, emphasizing the commission's commitment to cybersecurity and market integrity.

4. Ethereum NFT Market Resurgence: EtherRock and BAYC Lead Sales: Ethereum's NFT market witnesses a resurgence, with weekly sales volume surging over 99%.
   
   All this and more in today’s headlines!

📰 News Highlights:

Bitcoin Rally Surpasses $50K Amid Halving Speculation🚀💼 [Source][Source][Source]

Bitcoin's price surge to $50,000 on February 12 marks a significant milestone, validating bullish projections and signaling heightened investor interest. The rally, representing a two-year high, is propelled by positive sentiment surrounding exchange-traded fund (ETF) inflows, with spot Bitcoin ETFs attracting over $1.1 billion in funds last week alone.

According to a CoinShares report on February 12, the influx of funds into spot BTC ETFs brings total assets under management to $59 billion, reflecting renewed institutional confidence in the cryptocurrency market. Notably, this surge comes ahead of the anticipated halving event in April, underscoring investors' optimism about Bitcoin's long-term growth prospects.

Despite recent market volatility and liquidations exceeding $152 million, Bitcoin's resilience underscores its enduring appeal as a digital asset. 

Independent trader and analyst Rekt Capital emphasizes, "The signs were there," alluding to the market's bullish momentum leading up to the $50,000 milestone.

Franklin Templeton Enters Ethereum ETF Race💼📈 [Source][Source][Source]

Franklin Templeton's submission to the United States Securities Exchange Commission (SEC) for a spot Ether exchange-traded fund (ETF) underscores its strategic foray into digital asset investment opportunities. 

The filing, submitted on February 12, outlines plans for the "Franklin Ethereum ETF," which aims to incorporate staking mechanisms to enhance investor returns.

By leveraging staking, Franklin Templeton seeks to provide shareholders with additional income from Ethereum holdings, aligning with broader trends in decentralized finance (DeFi) and cryptocurrency markets. Notably, the ETF's proposed staking activities would involve trusted providers, including affiliates of the sponsor.

With SEC approval pending, Franklin Templeton's entry into the Ethereum ETF market reflects growing institutional interest in cryptocurrencies and blockchain technology. The integration of staking further diversifies investment strategies, offering investors exposure to Ethereum's ecosystem while potentially mitigating risk through additional income streams.

SEC Chair Gensler Addresses False Tweet Incident📩🛡️ [Source]

SEC Chair Gary Gensler's response to U.S. lawmakers regarding the unauthorized tweet from the SEC's official account underscores the commission's commitment to cybersecurity and market integrity. 

Gensler acknowledges the cybersecurity breach involving a "SIM swap" attack, which falsely claimed approval of spot Bitcoin exchange-traded funds (ETFs) on January 9.

In a letter dated February 6, Gensler outlines the SEC's efforts to investigate the incident in collaboration with law enforcement agencies. Notably, the commission's cybersecurity obligations are underscored, with ongoing measures to enhance safeguards against future breaches and misinformation.

The unauthorized tweet briefly caused turmoil in the cryptocurrency market, highlighting the potential impact of cyber threats on market stability and investor confidence. Gensler's response reaffirms the SEC's dedication to transparency and accountability, emphasizing the need for robust regulatory oversight in the digital asset ecosystem.

Ethereum NFT Market Resurgence: EtherRock and BAYC Lead Sales 🖼️💰 [Source][Source][Source][Source]

The Ethereum nonfungible token (NFT) market witnesses a revitalization, with weekly sales volume surging over 99%. Notable transactions include the sale of Wrapped Ether Rock #46 for $496,658 and Bored Ape Yacht Club (BAYC) #1726 for $668,297, reflecting renewed interest in NFT collectibles.

According to blockchain expert Anndy Lian, these NFTs symbolize more than digital assets. However, opinions vary regarding the motivations behind such high-value sales.

“The crypto market is anticipated to be more bullish. This brings the degen narrative back to the scene where this is a way to show their social and cultural capital of the NFTs.”

While some view the Ether Rock sale as a strategic move to garner attention, Ilan Rakhmanov, CEO of ChainGPT, suggests it may be an attempt to artificially inflate prices. 

“The Ether Rock sale seems like a price pump by someone who is trying to get more attention to the collection, as the actual sale price is much higher than any offer, which averages around $500.”

Nonetheless, Ethereum's NFT sales volume climbs to $159.5 million, driven by increased interest in collections like Pudgy Penguins and the Nobody collection.

Despite market downturns in recent years, Ethereum's NFT market demonstrates resilience, with collections like CryptoPunks and BAYC maintaining significant value despite fluctuations in floor prices.

💡 Feature of the Day: 

Introducing DN404🔄🔒 [Source]

The emergence of DN404 introduces a new hybrid token and NFT standard, offering an alternative to the recently launched ERC-404. Developed as a more efficient and compliant solution, DN404 aims to combine the functionalities of ERC-20 and ERC-721 tokens seamlessly.

Unlike ERC-404, which necessitates additional protocols for proper implementation, DN404 integrates two contracts—a base ERC-20 and a mirror ERC-721—streamlining the fractionalization process. This approach ensures compatibility with existing protocols and facilitates decentralized trading of fractionalized NFTs.

The primary objective of DN404 is to enable users to trade portions of NFTs without intermediaries, fostering a decentralized ecosystem for NFT exchange. However, developers caution that the code has not undergone formal auditing, emphasizing user discretion when utilizing the standard.

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😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com