Weekly Crypto Market Insights
(7 – 13 Oct 2024)
The above chart is the Bitcoin (BTC) H1 chart on TradingView for the week of 7 – 13 Oct 2024.
From the chart, the price of BTC opened at US$62,819.91 on 7 October 2024 and closed at US$62,870.02 on 13 October 2024. It marks an approximately 0.68% increase in price. The price is above the EMA200 which marks a bullish trend for now.
The above chart is the Ethereum (ETH) H1 chart on TradingView for the week of 7 – 13 Oct 2024.
From the chart, the price of ETH opened at US$2,440.02 on 7 October 2024 and closed at US$2,468.94 on 13 October 2024. It marks an approximately 1.19% increase in price. The price is above the EMA200 which marks a bullish trend for now.
The above chart is the Solana (SOL) H1 chart on TradingView for the week of 7 – 13 Oct 2024.
From the chart, the price of SOL opened at US$146.47 on 7 October 2024 and closed at US$147.74 on 13 October 2024. It marks an approximately 0.87% increase in price. The price is below the EMA200 which marks a bearish trend for now.
The above chart is the TOTAL3 H1 chart on TradingView. It shows the total market capitalization of the top-125 cryptocurrencies, excluding BTC and ETH, for the week of 7 – 13 Oct 2024.
From the chart, the market capitalization of TOTAL3 opened at US$602.495B on 7 October 2024 and closed at US$605.148B on 13 October 2024. It marks an approximately 0.44% increase in price. The market cap is above the EMA200 which marks a bullish trend for now.
The above chart is the OTHERS H1 chart on TradingView. It shows the total market capitalization of the top-125 cryptocurrencies, excluding BTC and the Top 10 cryptocurrencies, for the week of 7 – 13 Oct 2024.
From the chart, the market capitalization of OTHERS opened at US$217.987B on 7 October 2024 and closed at US$220.091B on 13 October 2024. It marks an approximately 0.97% increase in price. The market cap is above the EMA200 which marks a bullish trend.
Bitcoin Remains Bullish in Q4 Despite Middle East Tensions and Positive U.S. Jobs Data: K33 and ETC Group Analysts
Better-than-expected U.S. employment figures contributed to a market rebound over the weekend.
Bitcoin’s prospects for a bullish Q4 remain intact, despite recent market turbulence stemming from escalating tensions in the
Middle East and robust U.S. jobs data.
In a recent report, analysts from K33 said that the leading cryptocurrency has shown resilience, with positive signals emerging from the FTX estate’s creditor repayment process, which could bolster market sentiment.
Bitcoin Rebounds After Strong U.S. Data
Last week’s geopolitical unrest and its impact on global markets initially put pressure on Bitcoin, causing a downturn. However, better-than-expected U.S. employment figures contributed to a market rebound over the weekend, allowing Bitcoin to regain some lost ground.
The rebound aligns with analysts’ views that Bitcoin remains well-positioned for a strong performance as the year draws to a close. A key development influencing market sentiment is the progress in the FTX bankruptcy proceedings.
Nearly two years after the crypto exchange’s collapse, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved a reorganization plan for FTX during a hearing on Monday.
This plan, which aims to begin creditor repayments, received broad support, with about 94% of creditors in the “dotcom customer entitlement claims” class backing the proposal. These creditors represent around $6.83 billion in claims by value.
According to K33 analysts Vetle Lunde and David Zimmerman, creditor repayments are expected to begin late in Q4 and extend into early 2025. They project that the process could commence within a 60-day window following the court’s effective date, anticipated for mid-November.
The analysts specified that debtors with claims under $50,000 would receive their payouts within this period, accounting for roughly $1.2 billion worth of assets. Larger creditors, part of the entitlement class, could see $9 billion in payouts by February 2025.
Sell-Side Pressure Has Been Alleviated
A critical question for market observers is how much of the returned capital will flow back into the cryptocurrency and Bitcoin market in Q4.
Lunde and Zimmerman noted that much of the sell-side pressure has already been alleviated, given that many of the crypto assets from the estate have been converted into fiat currency.
Of the total claims, estimated between $14.4 billion and $16.3 billion, about $3.9 billion has likely been acquired by credit funds, which are expected to hold rather than reinvest in the market.
Furthermore, around one-third of the remaining claims belong to entities from sanctioned countries, insiders, or individuals without KYC verification, making it difficult for them to claim their funds.
After accounting for these factors, the analysts estimate that approximately $8 billion remains, with 20% to 40%—around $2.4 billion—potentially flowing back into the crypto markets.
However, they believe this influx will be gradual, reducing its immediate impact on market dynamics. K33’s analysis also reveals that only 21 of the top 100 cryptocurrencies have outperformed Bitcoin in 2024, with most being memecoins, less liquid tokens, or new Layer 1 projects.
Nearly half of the top 100 cryptocurrencies have seen negative returns, while 25—including ETH, SOL, AAVE, DOGE, and TRX—have posted gains but still underperformed Bitcoin.
Sell-Offs Related to Geopolitical Risks Present Buying Opportunity
In an analysis shared with Cryptonews.com, ETC Group said that past trends suggest that such sell-offs related to geopolitical risks often present tactical buying opportunities.
It added that the geopolitical tensions have now eased, and other factors, like the increased odds of Donald Trump’s election, have influenced the market recovery.
“On the macro side, the most recent positive US jobs report has blown out expectations and have eased market concerns for an imminent US recession,” the report said.
This has led to higher Treasury yields and increased expectations of fewer rate cuts by the Federal Reserve.
Nevertheless, ETC said that despite the recent turbulence, sentiment remains neutral, and market participants are closely watching shifts in liquidity and macroeconomic developments.
“Our in-house “Cryptoasset Sentiment Index” has reversed from high levels and currently signals neutral sentiment again,” it wrote.
Source: https://cryptonews.com/news/bitcoin-remains-bullish-in-q4-despite-middle-east-tensions/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Nearly 50% of Traditional Hedge Funds Now Invest in Cryptocurrencies: Report
Centralized exchanges are favored by 58% of traditional hedge funds for liquidity and ease of use.
Nearly half of traditional hedge funds now invest in cryptocurrencies, according to a survey published Thursday by the Alternative Investment Management Association and PwC. This marks a significant increase from 29% in 2023, and 37% in 2022.
This growth is driven by increased regulatory clarity and the launch of spot cryptocurrency ETFs in Asia and the US. Among the funds already invested, 67% plan to maintain their current capital levels. Meanwhile, 33% intend to invest more by the end of 2024.
The most popular digital asset strategies among traditional hedge funds are market-neutral and discretionary long-only, each adopted by 33% of respondents.
This survey was conducted in the second quarter this year. It included nearly 100 hedge funds from over six regions, managing about $124.5b in total assets.
Hedge Funds Move to Derivatives, Centralized Exchanges and Explore Tokenization
Centralized exchanges were found to be the preferred trading venues for 58% of traditional hedge funds. These platforms are favored for their liquidity and ease of use. Decentralized exchanges, used by 33%, offer greater control over assets. Over-the-counter (OTC) trading is preferred by 25%, as it allows large trades without impacting market prices.
Also, there is a notable shift towards derivative trading in digital assets. Its use rose to 58% in 2024 from 38% in 2023, while spot trading dropped to 25% after peaking at 69% last year. This shift signals growing sophistication in hedge fund strategies.
Interest in fund tokenization is also growing. About 33% of hedge fund respondents are committed to or exploring tokenization, up from around 25% last year. Among digital asset-focused hedge funds, 12% are already investing in tokenized assets, though regulatory challenges remain.
Many Still Reluctant to Enter Market
Despite the industry’s growth, many traditional hedge fund managers remain hesitant. Of those not currently invested in digital assets, 76% are unlikely to enter the space within the next three years, up from 54% in 2023. The top barrier, cited by 38% of funds, is the exclusion of digital assets from investment mandates.
While regulatory uncertainty remains a concern, it has eased somewhat due to clearer frameworks like the EU’s Markets in Crypto-Assets (MiCA) regulation.
Currently, family offices and high-net-worth individuals are the largest investors in digital asset-focused funds, followed by funds of funds.
In summary, the survey highlights a growing interest in digital assets among traditional hedge funds but also indicates significant barriers to wider adoption.
Source: https://cryptonews.com/news/traditional-hedge-funds-invested-in-crypto-pwc-survey/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Aethir Launches $100M Fund for AI and Gaming Projects
The fund aims to accelerate the adoption of Aethir’s decentralized compute platform. Decentralized public infrastructure network (DePIN) firm Aethir is launching a $100 million Aethir Ecosystem Fund for gaming projects.
The fund will be supported by the Aethir Foundation, providing financial support to artificial intelligence (AI) and gaming sectors. Through its grant programs, the fund is set to accelerate the adoption of Aethir’s decentralized compute platform, empowering both startups and established enterprises to scale their projects with ease.
Aethir said it has also launched Aethir Catalyst, a grant program within the ecosystem that will distribute 336,000,000 ATH tokens across the next year. These tokens will split equally between AI and gaming projects.
Aethir Launches Network on Ethereum Mainnet
In June, Aethir launched its cloud network on the Ethereum mainnet. DePINs are blockchain-based protocols used for creating and operating the physical hardware infrastructure of the network in a decentralized way.
Aethir’s cloud computing infrastructure platform allows data centres, and other cloud providers as well as crypto mining firms to contribute idle graphics processing unit (GPU) resources to its network.
$20M Aethir Catalyst Grant Program
At the heart of the new fund launch is the Aethir Catalyst, a $20 million independent grant program that will form the cornerstone of the Aethir Ecosystem Fund. The funding will be used to support over 100 projects, offering financial aid through grants or subsidies to companies that rely heavily on GPU compute.
Aethir said it is positioning itself as a vital infrastructure provider, allowing developers to focus on innovation without being hindered by limited access to compute power. The launch of the fund is relevant at a time when AI and gaming are becoming increasingly compute-intensive industries. By supporting early-stage startups and large-scale enterprises alike, Aethir aims to establish strategic partnerships that will drive the future of both industries.
Beyond the Catalyst program, Aethir’s Ecosystem Fund also includes two additional $10 million grant programs, in partnership with XAI and XPLA, designed to further accelerate advancements in AI and gaming. “Aethir Catalyst represents a significant commitment to democratizing access to GPU compute for AI and gaming innovators,” said Mark Rydon, co-founder at Aethir. “By allocating $20 million to this fund, we are ensuring that the most promising companies have the resources they need to thrive, reducing the barriers to compute power for all,” adds Rydon.
Source: https://cryptonews.com/news/aethir-launches-100m-fund-for-ai-and-gaming-projects/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Tax-free crypto transactions coming to UAE in November to push digital ambition
Market observers said the move further cements the UAE as a prominent crypto hub. The United Arab Emirates (UAE) has exempted crypto transactions from the country’s 5% value-added tax (VAT). This exemption is part of an amendment to the Executive Regulation of the Federal Decree Law on VAT. According to a document released on Oct. 4, the amendment will take effect on Nov. 15, 2024. However, the regulation will also apply retroactively to transactions conducted since Jan. 1, 2018.
With this new rule, all crypto-related transactions, including transfers and conversions, will no longer be subject to VAT in the UAE. As a result, crypto businesses must review past VAT filings to ensure compliance with the updated regulations.
What does this mean for crypto adoption in the UAE?
Market observers suggest that this move reflects the UAE’s continued efforts to integrate digital assets into its financial system. By exempting crypto, the country aligns it with other traditional financial services that are already VAT-free.
A recent report by Chainalysis highlighted that the UAE’s crypto adoption rate exceeds the global average. This is likely due to its clear, progressive regulatory stance on digital assets, which has brought certainty to the market.
Abdulla Al Dhaheri, CEO of the Blockchain Center in Abu Dhabi, highlighted the UAE’s commitment to innovation. He stated that the UAE continues to lead the way in blockchain development under visionary leadership.
He further remarked:
“With the elimination of VAT on crypto transfers and conversions, the UAE reinforce their commitment to building a world-leading digital economy, attracting the best talent and investment from around the globe.”
Consequently, the UAE’s proactive approach has attracted many users and positioned the country as a hub for DeFi and broader crypto activities.
Notably, several notable crypto firms have been drawn to the region, seeing it as a strategic gateway to expand into the Middle East. Tether, for instance, recently announced plans to launch a stablecoin pegged to the UAE Dirham. At the same time, crypto firm Ripple secured an in-principle license to operate within the UAE just last week.
Source: https://cryptoslate.com/tax-free-crypto-transactions-coming-to-uae-in-november-to-push-digital-ambition/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bittensor (TAO) leads AI token rally with 160%+ monthly gain
Artificial intelligence-based tokens led by Bittensor (TAO) displayed strength on Oct. 7, rising 16% over the last 24 hours to trade at $637. TAO is trading 7.5% higher than its price seven days ago and has gained a whopping 164% over the last 30 days.
Data from Cointelegraph Markets Pro and TradingView show that Bittensor’s recovery began on Sept. 7, rising 207% from a low of $220 to a six-month high of $678 on Oct. 7. This is just 13% shy of its $767 all-time high reached on April 11.
Changpeng Zhao Pledges More Time to Giggle Academy and Charity Work
Zhao also said that his educational initiative, Giggle Academy, will take up much of his time in the coming years. The project aims to provide free basic education globally for grades 1 to 12. Operating without a revenue model, it incorporates gamification, adaptive learning and blockchain technology, using “soul-bound tokens” to certify students’ achievements.
“I will also dedicate more time and funding to charity (and education). I have some rough ideas,” he said. Additionally, Zhao revealed he is currently writing a book, having completed two-thirds of it.
On April 30, 2024, Changpeng Zhao, also known as CZ, was imprisoned for four months for failing to implement a strong anti-money laundering system at Binance, violating the Bank Secrecy Act. This followed his November 2023 guilty plea, where he admitted to enabling transactions tied to criminal proceeds and sanctioned countries like Iran and Cuba.
Accompanying TAO’s price growth is an uptick in its trading volume, which has increased by 286% between Sept. 7 and Oct. 7, suggesting increased trader interest in the AI-themed token. Similarly, its market capitalization has jumped from $1.7 billion, rising 171% to $4.7 billion over the same period, cementing its position as the second largest AI-based token.
Let’s dig into what is fueling Bittensor’s rally.
Grayscale’s Decentralized AI Fund boosts TAO price
TAO’s price surge comes as it gains importance in Grayscale’s Decentralized AI Fund. On July 17, Grayscale, a US-based crypto asset management company, announced the launch of a new investment product dubbed the Grayscale Decentralized AI Fund that would derive value from the price of native tokens of decentralized AI protocols including Bittensor’s TAO.
Two weeks ago, Grayscale increased TAO’s allocation in the portfolio from 2.6% to 27.6%, almost at par with Near Protocol. By Oct. 4, Bittensor’s allocation stood at 29.5%, slightly surpassing that of NEAR which came in second with 29.15% of the fund’s total holdings. These recent changes in allocation added to the momentum behind TAO’s breakout from the pack.
TAO is not the only AI-themed token outperforming the crypto market today. Other cryptocurrencies in the AI sector have witnessed impressive gains in the past month, including Near Protocol NEARUSD, Internet Computer ICPUSD, and The Graph GRTUSD, which have seen over 42%, 17% and 28% gains, respectively, in the past 30 days.
Artificial Superintelligence Alliance (FET) has also seen significant gains, up 42% over the last month as the community votes on a process that may see CUDOS join Fetch.ai, SingularityNet and Ocean Protocol in the ASI alliance.
Notably, the surge in AI tokens has also been accompanied by an increase in their total market value. Additional data from CoinMarketCap shows that the market capitalization of AI and big data crypto projects and tokens has surged by 48.7% over the past four weeks to $36.9 billion at the time of publication, reflecting renewed investor confidence in the sector.
Investors turn bullish on AI, Bitcoin and crypto again
TAO price mirrored Bitcoin’s (BTC) price recovery, which has seen it jump 21% between Sept. 6 and Oct. 7. At the beginning of September, the market was negatively impacted by investors’ fears of a global recession and weak jobs data in the US. Data from Alternative, a platform that analyzes “sentiment and emotions” around cryptocurrencies revealed that the Crypto Fear & Greed Index dropped into the “extreme fear” zone at the time. However, sentiment returned to “neutral” as markets began recovering
and crypto investors sought to recoup losses.
As a trending narrative, AI keeps returning in 2024, despite altcoin and token drawdowns experienced along the way. The real-life usage of generative AI and LLM puts more attention on the available physical infrastructure and shared GPU that some of the projects provide, increasing investor interest in the underlying tokens.
Source: https://www.tradingview.com/news/cointelegraph:b01edb75c094b:0-bittensor-tao-leads-ai-token-rally-with-160-monthly-gain/ This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.