As of this morning across Asia, investors found Bitcoin (BTC) and Ethereum (ETH) have maintained stability at their respective price points of $37K and $2K. Meanwhile, the altcoin market is witnessing a cooling trend as a massive $650M worth of token unlocks loom over the crypto market. These unlocks, which increase the digital asset’s supply, have been linked to a decline in the value of multiple altcoins. Analysts attribute the largest of these movements to large unlocks related to major altcoins like dYdX (DYDX), Optimism (OP), Sui (SUI), Immutable X (IMX), and 1inch (1INCH). The largest unlock of which, DYDX, is expected to nearly double its circulating supply. How could traders best take advantage of this situation?
Cosmos Founder Proposes a Chain Split: Jae Kwon, the founder of Cosmos, is advocating for a split of the blockchain into two following a community decision to reduce the native token ATOM’s inflation rate to 10%. The proposed split, AtomOne, could be a bullish move for the ATOM token. This development comes as ATOM experiences a moderate loss, influenced by both this internal decision and broader altcoin market trends. Kwon’s call for a hard fork reflects his disagreement with the recent reduction in ATOM’s inflation rate, as he aims for a more decentralized approach with AtomOne. This move could potentially lead to the largest airdrop in the history of ATOM, raising questions about the future direction of Cosmos and the impact on its investors. How could the proposed split change the market for Cosmos?
Bitcoin and Altcoin Fund Inflows Press On: Digital asset funds have seen significant inflows, with bitcoin funds surpassing $1.5 billion this year, fueled by anticipation of a spot bitcoin ETF. Ether and Solana are leading the altcoin fund inflows. Last week alone saw a net inflow of $346 million into crypto investment funds, marking the strongest run since the 2021 bull market. The increasing interest in Bitcoin funds, coupled with the potential launch of a spot-based ETF in the US, suggests a growing investor confidence in digital assets. Ether funds, recovering from previous outflows, and Solana’s growing popularity among investors highlight the diversifying landscape of cryptocurrency investments. With such positive trends, could we be witnessing the early stages of a new bullish cycle in the crypto market?
UK FCA Expresses Support for Fund Tokenization: The UK’s Financial Conduct Authority (FCA) is endorsing a plan proposed by industry leaders for the tokenization of funds. This development marks a significant step towards integrating blockchain technology in the traditional finance sector. The proposal, aimed at creating tokenized shares of investment funds, emphasizes the need for regulatory clarity and compliance with existing financial regulations. The FCA’s support signals a progressive stance towards innovative financial technologies, potentially paving the way for a more modern and efficient asset management system. With the FCA exploring ways to expedite money laundering registration applications for authorized firms, how will this endorsement of fund tokenization shape the the crypto market as we see out 2023?
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