Cryptocurrency Market Overview 29.09.2023
News block
1. SEC Postpones Decision on Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) has postponed a decision on several applications to launch a spot bitcoin ETF, including applications from BlackRock, Invesco, Bitwise and Valkyrie.
The SEC was expected to make its decision on these applications in mid-October. However, the regulator did this two weeks earlier, which is probably due to the expected "shutdown" of the US government, which could potentially occur on October 1.
There are 3 companies still waiting for the SEC's decision on spot bitcoin ETFs: WisdomTree, VanEck and Fidelity.
For those companies whose applications have been postponed, the next deadline now falls in mid-January, and the SEC will have to make a final decision no later than mid-March 2024.
2. BIS completed CBDC pilot project
The Bank for International Settlements (BIS) has stated that DeFi elements can form the basis of the next wave of financial market infrastructure.
According to a report published on Thursday, the Bank has completed a pilot project of the central bank's wholesale digital currency (CBDC). The project tested cross-border trade and CBDC settlements between financial institutions using innovations derived from DeFi.
"The DeFi elements tested in the project, in particular automated market makers, can become the basis for a new generation of financial market infrastructures," the BIS Innovation Center said.
The project tested whether automated market makers would be able to increase market efficiency and reduce settlement risk. This included cross-border trade and settlements on hypothetical wholesale CBDC versions of the Swiss franc, euro and Singapore dollar.
"The project has successfully demonstrated the possibility of wholesale CBDC exchange across borders using new concepts such as automated market makers," the report says.
The BIS Innovation Center announced that it plans to continue research in this area.
Overview of the crypto market
🔸 The current capitalization of the crypto market is $1.115 trillion
🔸 Trading volume for the last day is $46.0 billion
🔸 BTC dominance 47.2%
🔸 Fear and greed index:
- today 48, yesterday 46 a week ago 47
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 cryptocurrency market has noticeably increased over the past day. The value of BTC and ETH increased by more than 2%. And the management tokens of the leading credit platforms, such as COMP, AAVE and MKR, received an increase of 21%, 10% and 5%, respectively.
The growth of cryptocurrencies occurred simultaneously with a modest recovery in US stocks, as the yield of 10-year Treasury bonds rolled back from a 16-year high, oil retreated from a 2023 high, and the dollar also fell.
At the same time, analysts of the Santiment agency note a bullish combination in the crypto market, which has developed as a result of the accumulation of both BTC and USDT by large holders.
The so-called sharks and whales (wallets with a balance of 10 to 10 thousand BTC) have now accumulated the maximum amount they had in 2023 (13.03 million BTC). In addition, sharks and whales continue to accumulate USDT:
Funding and betting against the crowd
With the exception of the insane bullish growth of bitcoin in early 2021, the price movement of the first cryptocurrency often occurs in the opposite direction to the traders' rates.
When is the financing rate (funding) in the futures market both positive and negative, exceeds 0.025%, this can be considered an overbought and oversold point:
