Is
crypto
back?
It
seems
that
every
other
week
there
is
a
headline
saying
bitcoin
(BTC)
and
ether
(ETH)
are
trading
hands
at
prices
not
seen
since
2021,
when
the
crypto
market
was
in
an
upswing.
It’s
not
obvious
that
the
price
appreciation
is
going
to
stop
anytime
soon;
things
feel
different
this
time
around.
This
is
an
excerpt
from
The
Node
newsletter,
a
daily
roundup
of
the
most
pivotal
crypto
news
on
CoinDesk
and
beyond.
You
can
subscribe
to
get
the
full
newsletter
here.
The
pandemic-era
bull
market
was
a
period
of
mass
exuberance,
hysteria
and
fun.
Everyone
from
Elon
Musk
to
my
mom
seemed
to
be
talking
about
crypto.
Celebrities
were
endorsing
meme
coins
and
buying
NFTs.
Crypto
became
a
cultural
touchstone:
perhaps
the
best
signifier
of
an
economy
going
through
wild
gyrations
as
the
post-pandemic
world
began
to
reopen,
a
weird
time
dominated
by
“vibes.”
In
comparison,
the
latest
market
upswing
has
been
quiet.
Sure,
a
few
friends
have
reached
out
to
see
if
they
should
buy
bitcoin
—
an
anecdotal
indicator
suggesting
increased
retail
interest.
But,
by
and
large,
it
seems
very
people
have
taken
notice
as
crypto
prices
have
ticked
up.
Of
course,
following
the
wave
of
protocol
failures
and
corporate
bankruptcies
in
2022,
starting
with
the
high
profile
implosion
of
Terra
and
culminating
in
the
collapse
of
FTX,
crypto
has
become
toxic
to
talk
about.
The
same
level
of
enthusiasm
and
lightheartedness
is
hard
to
regain
while
still
living
through
the
hangover.
There
are
a
number
of
indicators
besides
price
action
that
suggest
the
crypto
market
rebound
has
begun
in
full
force.
MetaMask,
the
primary
means
of
accessing
the
Ethereum
network,
is
nearing
an
all-time
high
of
monthly
active
users
(30
million);
Coinbase,
the
largest
U.S.
crypto
exchange,
posted
its
first
profitable
quarter
in
two
years
as
trading
volumes
bounce
back;
and
bitcoin
search
interest
is
bouncing
back
(a
little),
according
to
Google
Trends.
A
number
of
factors
could
be
contributing
to
rising
interest.
The
bitcoin
halving,
an
event
that
occurs
roughly
every
four
years,
is
always
a
popular
media
topic.
Meme
coins
and
token
airdrops
feed
the
idea
that
the
crypto
industry
prints
people
free
money.
Endorsements
from
figures
like
BlackRock
CEO
Larry
Fink
and
even
government
bodies,
in
places
like
Hong
Kong
and
the
United
Arab
Emirates,
foster
a
sense
that
crypto
is
technologically
significant.
Most
notably,
the
launch
of
nearly
a
dozen
spot
bitcoin
exchange-traded
funds
(ETFs)
has
gone
better
than
expected,
with
BlackRock’s
ETF
already
posting
the
fifth-largest
inflows
this
year
and
billions
of
capital
flowing
into
the
crypto
funds.
Moreover,
there
is
a
growing
sense
that
the
worst
may
be
over
for
crypto,
legally-speaking.
Large
overhanging
concerns
have
more
or
less
wrapped
up,
often
in
crypto’s
favor.
The
Department
of
Justice
settled
with
Binance,
imposing
a
strict
financial
penalty,
but
one
the
world’s
largest
exchange
appears
able
to
carry.
The
U.S.
Securities
Exchange
Commission’s
hostile
attempt
to
“regulate
through
enforcement”
was
dinged
after
Ripple
won
a
significant
legal
battle
in
court,
and
as
the
agency
faces
other
uphill
battles
in
court.
And
the
FTX
bankruptcy
process
is
winding
down,
with
full
restitution
expected
for
all
former
users.
Increasingly
governments,
including
in
the
U.S.,
appear
to
want
to
work
with
the
industry
to
develop
policies
that
protect
consumers
without
hampering
the
development
of
crypto.
The
European
Union
passed
the
significant
MiCA
ruleset
while
the
U.K.,
Hong
Kong,
Nigeria,
and
others
are
all
vying
to
become
crypto
“hubs.”
It’s
as
dangerous
as
it
is
stupid
for
journalists
to
try
to
predict
the
future,
especially
in
an
industry
as
volatile
and
quickly
changing
as
crypto.
There’s
no
guarantee
the
bitcoin
rally
will
continue,
and
there’s
always
the
chance
for
fortunes
to
reverse.
But
there
certainly
is
a
growing
sense
that
crypto
is
on
the
cusp.
A
lot
of
things
have
changed
since
2021,
many
for
the
better.
If
the
buzz
grows,
crypto
has
the
opportunity
to
do
it
better
this
time,
leaving
behind
the
shameless
celebrity
endorsements,
wanton
financial
speculation,
pure
fraud
and
waves
of
rehypothecation
and
backroom
deals
that
defined
crypto’s
bad
vibes
last
time
to
focus
on
building
something
more
substantial
and
long-lasting.
