Market Overview (Apr 8 – Apr 14): Bitcoin ETF Trends and Geopolitical Tensions Shake Crypto Market

Key Points

• Major financial institutions in Asia are investing in Bitcoin, and companies like Metaplanet are developing ways for citizens to access Bitcoin with fewer legal and financial barriers.
• The FED’s meeting minutes highlight concerns about inflation and potential economic risks, including political unrest, rising energy costs, and a weakening Chinese economy.
• Geopolitical tensions, particularly between Iran and Israel, have led to significant market fluctuations and a drop in Bitcoin’s value.

Explore the latest crypto news with updates on Bitcoin ETFs, regulatory shifts, geopolitical Tensions, and macroeconomic trends impacting the cryptocurrency market.

Last week’s highlights big news (Apr 8 – Apr 14)

In recent news, big financial players such as Harvest Fund and Southern Fund in China are applying to establish a Bitcoin ETF fund in Hong Kong. Harvest Fund manages over $230 billion in assets, and Southern Fund manages over $280 billion.

Further east, Sora Ventures has announced a partnership with Metaplanet, a company listed on the Tokyo Stock Exchange. The partnership aims to create Asia’s first “Microstrategy”. Metaplanet will hold Bitcoin and plans to buy its first 1 billion Yen BTC, approximately 6.5 million USD.

This allows Japanese citizens to access Bitcoin without paying taxes, which could reach up to 55%. Metaplanet will also enable anyone with an account on the Tokyo Stock Exchange to access Bitcoin without any legal risks.

In technological advancements, the TON ecosystem introduces palm recognition technology to compete with Worldcoin in verifying digital identities on the blockchain.

On the regulatory front, Uniswap has received a “Wells Notice” from the SEC. A “Wells Notice” is a letter sent by the SEC to inform a company of charges from the SEC and gives the company a chance to clear its name and convince the SEC why it should not be sued.

In the meantime, Coinbase has enabled customers in the UK to buy Bitcoin using Apple Pay, providing an easy entry point for new crypto enthusiasts.

The political landscape is also seeing changes. After the recent South Korean parliamentary elections, the winning opposition party has committed to expanding access to Bitcoin ETF funds, emphasizing their pro-Crypto stance. These policies will apply to both domestic and international ETFs.

In the Middle East, Crypto.com has received full operational approval from Dubai’s Virtual Asset Regulatory Authority (VARA) for its local organization. Institutional investors in the United Arab Emirates (UAE) will now be able to use the Crypto.com exchange.

However, it’s not all rosy. The Philippine Securities Commission has banned Binance, similar to about 14 other platforms that were banned in 2023 for non-compliance with the law.

Lastly, Aave’s decentralized finance protocol is considering a new proposal to share revenue from transaction fees with token AAVE holders. This move could incentivize more users to hold and use AAVE tokens, potentially boosting the protocol’s popularity and value.

Read More: Spot Ethereum ETF vs. Ethereum Futures ETF: Which Is The Better Investment?

Macroeconomics (Apr 8 – Apr 14)

CPI UPDATES:

➡️ This Month’s CPI = 3.5%

• Last Month = 3.2%
• Estimate = 3.4%

➡️ This Month’s Core CPI = 3.8%

• Last Month = 3.8%
• Estimate = 3.7%

The FED meeting minutes reveal a need for more assurance that inflation is moving towards their 2% target. With political unrest and rising energy costs posing potential risks for higher inflation, FED officials also highlighted the risk of loose policies further boosting inflation.

On another note, they pointed out a more balanced job market and advancements in technology. They also cited the weakening Chinese economy and the declining commercial real estate market as potential risks should interest rates not be cut.

Inflation data from two months ago suggested potential short-term factors affecting the results, with Chairman Jerome Powell indicating a need for more time to confirm. The inflation rate for PPI (wholesale inflation) is slightly lower than estimated at 2.1%, indicating persistent inflation.

Financial events for the new week include the Bitcoin Halving and numerous FED officials speaking. The Bitcoin/Crypto market displayed a reaction to recent news about Iran and Israel, although these are initial reactions. The true market response will become clearer when the stock market opens.

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Prediction Market Crypto (Apr 8 – Apr 14)

The forthcoming period is expected to be turbulent due to geopolitical tensions. Bitcoin’s value dropped swiftly by $6K following reports of Iran launching substantial unmanned attacks toward Israel. This was a response to their embassy being bombed by Israel earlier in the month.

According to US intelligence, Iran is predicted to counterattack Israel within the next 48 hours. Israel was informed, based on specific intelligence, that they should anticipate a direct and unprecedented attack from Iran within this time frame.

Meanwhile, the US does not dismiss the potential of launching counterattacks with Israel against Iran if Israel is attacked. These developments coincide with just four days remaining for the Bitcoin halving event, and the market’s collapse before this event was largely unexpected. The potential for conflict has led to significant market fluctuations.