Cryptocurrency Market Overview 16.10.2023
News block
1. G20: global regulation of cryptocurrencies
On October 13, the G20 unanimously adopted the "Communique of Finance Ministers and central Bank Governors of the G20" during a meeting in Marrakech, Morocco.
G20 members adopted the roadmap for regulating cryptocurrencies proposed in September this year by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
The IMF document-FSB assumes comprehensive supervision of the cryptocurrency instead of a complete ban. Its recommendations include cross-border cooperation and exchange of information between regulatory authorities, the requirement of comprehensive risk management for cryptocurrency companies, as well as a guarantee of access to relevant data provided by crypto companies to the authorities.
In addition, the G20 leaders also stressed the need for a clear tax regime for crypto assets.
According to the document, the first review of the implementation status of the proposed measures should take place by the end of 2025.
2. Ferrari Starts accepting Cryptocurrency
According to Reuters, Ferrari will accept cryptocurrency as a payment method for its cars in the United States. And in the near future, the company intends to extend this payment option to Europe.
The decision to introduce cryptocurrencies was made in response to requests from the market and dealers. According to the company's representatives, many customers have invested in cryptocurrencies.
For a new payment method in the USA, Ferrari has started cooperating with BitPay, a well—known provider of payment services in cryptocurrency. Thanks to BitPay, payments in BTC, ETH and USDC stablecoin will be accepted and promptly converted into fiat currency to protect dealers from the volatility of prices for digital assets.
Representatives of the company said that the Ferrari order portfolio is fully formed until 2025. However, the company is experimenting with this payment method to potentially attract new customers.
Overview of the crypto market
🔸 The current capitalization of the crypto market is $1.102 trillion
🔸 Trading volume for the last day is $27.52 billion
🔸 BTC dominance 48.3%
🔸 Fear and greed index:
- today 47, yesterday 45, a week ago 50
where 0 is extreme fear (may be a sign that investors are too scared - often it's a good time to buy), and 100 is extreme greed (the market needs correction).
The U.S. Securities and Exchange Commission (SEC) did not file an appeal in the case against Grayscale.
Recall that back in August, the District Court of Appeals of the District of Columbia ruled that the SEC's refusal to satisfy Grayscale Investment's application to convert Grayscale Bitcoin Trust (GBTC) into an ETF is invalid and should be reviewed, calling it an "arbitrary and capricious" refusal.
The market regulator had until the end of Friday to make a decision to challenge the court's decision, but the SEC did not appeal. BTC rose above $27,000 after the release of this news and continued its growth today.
Bitcoin: what do the indicators say?
Activity on the Bitcoin network has decreased significantly recently. This is well reflected in the following diagrams:
Active addresses (SMA 7):
Number of transactions (SMA 7):
Such a drop in activity suggests that there are practically no new investments going to the cryptocurrency market. As a result, there is little liquidity, and volatility freezes.
In addition, the total number of transferred BTC (Tokens Transferred, 14MA) shows that there was no significant redistribution of coins among the major players, and this is often a necessity for a new rally:
However, this does not mean that the situation is developing only in a negative way for BTC: the hashrate of the network and the complexity of mining, which are indicators of fundamental indicators for the first cryptocurrency, tend to grow and remain consistently high:
At the same time, on-chain data show that long-term holders continue to increase their stocks of BTC coins in the current conditions, which indicates their confidence in the next bull market.
Solana: successful completion of the third quarter
Despite the numerous setbacks that the Solana (SOL) blockchain experienced last year, the last few months have been quite successful for the project. Among the most significant events are:
- Shopify has added Solana Pay to its payment platform;
- Visa has expanded calculations with USDC stablecoins on the Solana blockchain;
- The founder of MakerDAO suggested using the Solana codebase to create his own MakerDAO blockchain;
- TVL on the network grew by 25% in the third quarter.
In addition to all this, thanks to the latest update, the blockchain now supports private transactions.
Despite all the difficulties encountered, the team is making great efforts to develop the project.
Will Solana be able to succeed in the next bull market?
The project is definitely moving in the right direction and has a high chance of survival in the competitive environment of Layer-1 blockchains. His strong community also plays a big role in maintaining the project.
Staking can Upgrade Ethereum-ETF
Currently, a number of applications from large financial institutions have been submitted to the SEC for the launch of spot Ethereum ETFs. Initially, such funds will have a simple structure. However, just as the equity-focused ETF market has evolved and started offering many complex products, the same should happen with Ethereum-ETFs.
Similar to how investors in traditional ETFs now receive dividends from owning shares, it can be assumed that investors in Ethereum will receive income from staking. Rejecting such rewards is akin to denying a full return on investment.
For example, a fund with a balance of 9600 ETH (about $15 million) can earn an additional 32 ETH per month through staking. This not only increases the fund's income, but also contributes to improving the security of the Ethereum network.
