Welcome back, it was the week when ether hit a fresh record high and an obscure cryptocurrency, called SHIB, was in the spotlight for all the wrong reasons.
Here are the top stories that caught our eye.
Ether hits fresh all-time high
Ether, the world’s second largest cryptocurrency, hit a fresh all-time high of almost $4,661 according to Investing.com data this week, and the rally shows little signs of abating.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Experts attributed ether’s latest rally to an upgrade that took place on Friday and to its role in non-fungible-tokens (NFTs).
The Ethereum 2.0 Altair Beacon Chain Update is a pivotal step in achieving Ethereum 2.0, a significant upgrade to the network that has been bubbling since years.
The update paves the way for Ethereum’s transition from a “proof of work” to a “proof of stake” consensus mechanism. Both are methods of verifying transactions on the blockchain, but proof of work uses a lot of energy, while proof of stake is considered more energy efficient and reduces the risk of attacks by miners on the network.
Spain’s central bank tells financial institutions to reveal their cryptocurrency plans until 2024
The Bank of Spain (Banco de España, Spain’s central bank) is urging its financial institutions to detail their crypto plans for the next three years, according to a report by CoinDesk.
The move, first reported by Spanish newspaper El Pais on Thursday, is an effort to understand “the impact that the ongoing process of digitalization and financial innovation may have,” according to an unnamed central bank source.
Condesk says the bank has asked that commercial banks include information on their relationships they have with various cryptocurrency service providers. Banks are also being asked to reveal any stakes held in crypto companies as well as stating any plans on whether banks intend to provide custody services, trading or payment services, or offer any digital platform to customers until 2024.
The move comes as interest in the sector has risen over coming months, with major Spanish banks, such as Santander Group, revealing plans to offer a cryptocurrency exchange-traded-funds (ETF).
The Bank of Spain also published instructions last week on how institutions can begin to roll-out cryptocurrency services in Spain.
Earlier this year, Spain’s leading opposition party, Partido Popular (PP), introduced a bill that paved the way for mortgages to be paid using cryptocurrencies.
It’s a bad week for dogecoin spin-off shiba inu coin
Dogecoin inspired token shiba inu coin (SHIB) crashed this week after a crypto “whale” (an entity or a person that holds enough units of cryptocurrency to visibly affect the market) moved as much as $2.3bn in tokens from a digital currency wallet, driving its value down by more than 20% on Thursday.
The token’s price had surged last month after evidence that a big holder bought 276.6 billion tokens. After Thursday’s price drop, the value of the token is still significantly low at $0.00005171 as of Friday morning.
In a double whammy week of bad news for the token, cryptocurrency exchange Kraken opted not to list SHIB even though it said it would do so if one of its social media posts from last week garnered a minimum of 2,000 likes. Even though the post attracted almost 60,000 likes, Kraken backtracked and said that it has more work to do as it reviews its listing process.
Commonwealth Bank of Australia offers crypto to retail customers
The Commonwealth Bank of Australia (CBA) is set to become the nation’s first high-street bank to offer its retail customers cryptocurrency trading.
The CBA said it will team up with Gemini Trust Company, a US-based exchange, to provide access to a crypto exchange and custody service.
CBA’s move is at odds with the nation’s four biggest banks. Earlier this year, the banks were criticised at a parliamentary hearing for shunning business with cryptocurrency providers.
CBA said its decision was inspired by the growing popularity of cryptocurrencies. After a pilot takes place this year, CBA will offer the ability to buy, hold and sell ten cryptocurrencies.
Here’s what happened in the cryptocurrency market in the last seven days:
- Bitcoin is up 4% at $61,500.
- Ether is up 7% to $4,485.
- Dogecoin is down 11% to $0.26.
- Cardano is up 2% to $1.98.
- Solana is up 25% to $237.79.
What you need to watch out for
It is worth keeping an eye out on the price of ether. US banking giant Goldman Sachs thinks it could rise by 80% in the next two months and hit $8,000 if inflation expectations stay intact.
Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times), Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.
Follow her on Twitter at @sardana_saloni
Should your business invest in a VoIP phone service?
Here's what you need to know about VOIP (voice over IP) services before landlines go digital in 2025.
By David Prosser Published
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
The top funds to invest in
Tips Tech-focused funds are continuing to attract private investors and Scottish Mortgage falls back into favour - we look at the top fund, trusts and stocks investors are pumping their money into in the last month
By Vaishali Varu Last updated
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published