This Week in Pieces: Google Cloud, BNY Mellon News Not Boosting Bitcoin, Ethereum

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It was the fourth consecutive week losses or no movement for Bitcoin and Ethereum, both of which fell at the end of this week after higher inflation readings from the US Bureau of Labor Statistics.

Bitcoin has fallen 2% over the past week and is currently trading at $19,126; Ethereum fell 3.5% to a current price of $1,282, according to data from CoinGecko.

Bitcoin mining difficulty hit on Monday a new historic record after rising 14%, the biggest increase since May. As the difficulty increases, miners could face lower profits if Bitcoin’s price remains inert, as it takes more computing power and electricity to mine. However, the increase in mining difficulty also indicates a strong and growing network.

Ethereum Supply turned deflationary last weekend, meaning that more ETH is currently being burned (taken out of circulation) than created. This comes as no surprise to Ethereum’s flag carriers – it was announced as part of the post-merger processbut the news had little effect on prices this week.

So-called “Ethereum Killers” (layer 1 blockchains with high functionality smart contracts) had a rough week, including Cardano (ADA), which is down 14% to $0.36 and Solana (SOL), which is down 9% to $29.91. The Solana network was also confronted persistent stability issuesalthough Solana founder Anatoly Yakovenko said Decrypt‘s gm podcast that a “long-term solution” is coming and that controlling outages is the “number one priority” for Solana.

Uniswap (UNI) fell 8% to $6.13 and Chainlink (LINK) also fell 8% and is currently trading at $6.95. Ethereum Classic (ETC) and Near Protocol (NEAR) also fell around 16% this week.

Major Adoption Movements

Two huge institutional players announced their move to crypto this week: Google Cloud and BNY Mellon.

Google’s cloud division announced on Tuesday that it would use Coinbase at accept crypto payments for cloud services early next year. A “handful” of customers will be able to pay in crypto thanks to integration with Coinbase Trade, a payment tool for businesses. As part of the deal, Coinbase Commerce is expected to move “data-related applications” from Amazon Web Services’ cloud to Google’s.

Investment banking titan BNY Mellon, one of America’s oldest continuously operating banks, on Tuesday launched a childcare service for Bitcoin and Ethereum on behalf of selected investment firms using software developed with crypto custody provider Fireblocks. BNY Mellon has contracted Chainalysis for compliance software and will store clients’ private keys and provide accounting services on their crypto wallets.

Perhaps a year ago, in a different economic cycle, both of these moves would have moved the crypto markets. Not this week, in the current macro environment.

Shipments from Brussels and Washington

European Union lawmakers on Monday voted 28 to 1 to pass the Crypto Asset Markets Regulation (MiCA) – a landmark set of laws that hopes to regulate crypto within the bloc. If it survives the next round of voting, the MiCA implementation will place tougher requirements on crypto companies, stablecoin issuers, and miners.

In April last year, the G20 (an affiliation of 20 of the world’s largest economies) tasked the Organization for Economic Co-operation and Development (OECD) with “developing a framework providing for the automatic exchange of tax information on cryptocurrencies”. Assets” between nations. Monday, the OECD presented his framework at the G20.

Finance ministers and central bank governors met in Washington later in the week to review the 100-page Crypto Asset Reporting Framework (CARF) and suggested changes to the group’s Common Reporting Standard (CRS).

On Wednesday, Massachusetts Senator Elizabeth Warren and six other US Democratic lawmakers submitted a letter to Pablo Vegas, CEO of the Electric Reliability Council of Texas (ERCOT), calling Texas “deregulated safe harbor” for crypto mining operations and requesting information about the energy consumption of Bitcoin mining operations in the State of Texas.

Finally, this week has brought another refusal from the SEC for a bitcoin cash ETF (exchange-traded fund, this time from Cboe BZX Exchange.

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