AI Tokens Gains, Coinbase Vs. SEC, and BTC Bounces Back - October 7, 2024
A quick and digestible recap of the weekend’s crypto news.
TL;DR: Market Insight in Seconds
Coinbase: Pushes for early appeal in SEC case to take advantage of Ripple’s case.
AI Tokens: Lead the rally during the weekend with big gains.
US Spot ETFs: BTC and ETH ETFs see weekly outflow setbacks.
Market: Analysts consider the market is calming down after a rough week.
Bitwise: Wants to add Treasuries to its three crypto futures ETFs.
Magic Eden: The NFT marketplace is partnering with Ubisoft to launch gaming NFTs on Arbitrum.
Coinbase: To remove non-compliant stablecoins in EU.
Price Update
Bitcoin's October Bounce: Resilience Amid Economic Twists
After a quick dip below $60,000, BTC bounced back to $61,300. While it's down 6% since the month began, October has historically been Bitcoin's time to shine. The U.S. booming job market, with 254,000 new jobs in September, was an economic surprise that sent Bitcoin on a brief surge to $61,500. However, Middle East tensions and the looming U.S. election are stirring the pot. Some experts think these factors might favor Bitcoin in the long run.
Regulatory Updates
Coinbase Pushes for Early Appeal in SEC Case
Coinbase is asking the judge to fast-track their appeal in their ongoing battle with the SEC thanks to a new development in the SEC's case against Ripple. They want the appeals court to consider how the 1946 standard on what counts as a security applies to our modern digital assets. Legal experts are calling Coinbase's move "smart." The exchange is betting that by presenting both cases together, they'll strengthen their argument and potentially shape the future of crypto regulation.
Coinbase to Remove Non-Compliant Stablecoins in EU
Coinbase is announcing plans to delist stablecoins that don't meet new MiCA guidelines by December 30, 2024. This move aligns with the EU's push for stricter crypto regulations. While USDC issuer Circle has already secured an e-money license, Tether's USDT is still in the regulatory hot seat.
Market Trends
AI Tokens Spark Crypto Rally During Economic Optimism
The crypto market is on a roll, with AI-focused tokens leading the charge. Bittensor's TAO and Render's RNDR are stealing the spotlight, surging 14% and 8% respectively. What's fueling this rally? The U.S. jobs report. With 251,000 new jobs and unemployment down to 4.1%, the economy's looking healthier than expected. This optimism is spilling over into stocks and even affecting Fed rate cut expectations.
US Spot Bitcoin and ETH ETFs Face Weekly Outflow Setback
Bitcoin ETFs log their first net outflow since early September. Total assets dropped from $61.21 billion to $57.73 billion, influenced by outflows and Bitcoin's price dip. Despite a small $25.6 million inflow on Friday, led by Bitwise's BITB, the week ended negative. Grayscale's GBTC was the odd one out with a $13.9 million outflow. Ethereum ETFs mirrored this trend with a weekly net outflow of $30.7 million, despite BlackRock's ETHA seeing some gains.
Crypto Market Stabilizes After Volatile Week, Says Coinbase
Coinbase analysts are seeing calmer waters in the crypto sea after a week of choppy trading. The market's finding its balance, with bitcoin futures funding rates cooling from 10-11% to a more modest 5-7%. Investors are now playing the waiting game, eyeing the Fed's next moves on interest rates and keeping tabs on the upcoming U.S. presidential elections.
New Developments
Bitwise Shakes Up Crypto ETFs with Treasury Addition
Bitwise is giving its crypto ETFs a makeover. The asset manager is adding Treasuries to three of its crypto futures ETFs, with the changes set to take effect in December 2024. The goal is to create a trend-following strategy that can switch between crypto and Treasuries based on market conditions. It's a clever play that could make crypto ETFs more palatable to risk-averse investors.
Magic Eden, Ubisoft Launch Gaming NFTs on Arbitrum
NFT marketplace Magic Eden is teaming up with gaming giant Ubisoft and Arbitrum to drop a 10,000-piece NFT collection based on the Netflix anime "Captain Laserhawk: The G.A.M.E." This is Arbitrum's debut on Magic Eden's platform. The NFTs will give holders a say in game governance and access to exclusive content.
From Bitcoin's resilient bounce above $60K to AI tokens leading the charge, we're seeing a market that continues to mature and adapt. Regulatory challenges are reshaping the landscape, with Coinbase's legal battles and EU stablecoin compliance pushing the industry toward greater accountability. Market stability is returning after a week of volatility, but macro factors like Fed decisions and geopolitical events continue to influence crypto's path. As the market evolves, being informed and adaptable is crucial for investors and participants. Stay tuned for tomorrow’s newsletter to get the latest insights and updates in the market.
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