The number of wallets holding Bitcoin has exceeded 48 million

Bitcoin saw its price rise above $27 last week on the platform eToro. However, the rally was short-lived as concerns over the timing of the spot price approval ETF crept back into the market and planted seeds of uncertainty.

The cryptocurrency started the week at around $25 and - despite rising mid-week - has now returned to a similar level.

Ethereum has seen similar activity, starting last week around $1 and rising above $630 on Tuesday. It has since pulled back as well and is currently trading just below $1.

In early September, the cryptocurrency market remains on edge. Various macroeconomic and regulatory narratives continue to leave investors uncertain. With the path to lower interest rates still unclear and the bitcoin spot ETF still pending approval, the market will continue its guesswork on the further direction of major cryptocurrencies.

Bitcoin wallets reached 48 million

Despite the ruination of the bitcoin market over the past few weeks, the number of wallets holding the cryptocurrency has surpassed 48 million for the first time in history, according to data from IntoTheBlock.

While the price has been a bit calmer over the summer and suffered a few setbacks, it is clear that the use of cryptocurrencies continues to grow strongly. So far, more than 2023 million wallets have been created in 5,61, compared to just 3,62 million in 2022. This suggests that a significant accelerated expansion of the user base is underway.

The way user expansion affects price is ill-defined and comes down to what those users do with the cryptocurrency. Transactional usage that is increasing has less impact on price, but can affect other aspects such as fees. The market price of a cryptocurrency is more dependent on macroeconomic factors, demand and willingness to maintain it.

HashKey will launch an altcoin fund

Według Reuters reports, Hong Kong-based cryptocurrency company HashKey Capital, intends to launch an investment fund focused on altcoins.

The fund will invest more than $100 million in smaller cryptocurrencies and hold less than 50 percent. of its shares in bitcoinie or ethereum - the two largest cryptocurrencies that are often the basis of such funds. HashKey says for now, the fund will target professional investors looking for alpha (above market) returns from diversified investments.

The fund may not target specific cryptocurrencies, but it certainly shows investors' renewed appetite for market access. HashKey's position in Hong Kong is also noteworthy as it often provides products for investors in mainland China - a market that may be underestimated in terms of cryptocurrency offerings.

"Supreme Court" Ethereum at risk 

Matter Labs founder Alex Gluchowski has suggested that Ethereum create a "high court" to say its last word in transaction and chain disputes.

As the use of the Ethereum network grows and diversifies, it becomes more and more important to fairly settle disputes regarding contracts, ownership or use. This is a process long established in traditional markets whereby asset owners can enforce their rights through traditional court systems.

However, the fact that crypto-assets and blockchains are relatively new means that many issues have not been established in legal precedent. While in the UK, the Legal Affairs Committee is considering how to establish ownership rights over digital assets, there is still a long way to go in terms of it.

This makes a potential supreme court on the Ethereum chain an interesting solution to this evolving situation. However, the composition of any such system would have to go through a broader approval process by developers and the Ethereum community.