Welcome to the March 13, 2024 edition of the Genfinity News Recap! As you navigate through your busy workday, staying informed about the latest developments in the realms of Web3 and finance can be a challenge. However, we are here to provide you with an overview of the crypto news you might have overlooked today.
March 13, 2024 Genfinity News Recap
Bitcoin
Analysts consistently have varying opinions on market direction that should be taken with a grain of salt. Yet, many of us are wondering how long this market rally will last before a cooling off period.
CoinDesk interviewed Swissblock, a firm who warned of just that. Swissblock notes that Bitcoin doubled in price from $38,000 without significant pullbacks, suggesting a forthcoming period of consolidation. Analysts point to a negative bearish divergence between Bitcoin’s price and its relative strength index (RSI) on the 4-hour chart, indicating lower prices ahead. Swissblock predicts a potential pullback to $58,000-$59,000, representing a 20% decline, but emphasizes that the overall uptrend remains intact.
Additionally, Matrixport suggests that Bitcoin’s rally may be losing momentum, and the surge in meme coin prices could signal an impending pullback, despite Bitcoin trading slightly above $73,000.
Bitcoin ETFs
JMP Securities predicts that spot Bitcoin exchange-traded funds (ETFs) could attract $220 billion in inflows over the next three years, potentially quadrupling Bitcoin’s price to $280,000. Summarized by CoinDesk, the brokerage firm believes Coinbase is well-positioned to benefit from this trend and has raised its price target on the stock (COIN) to $300.
Despite spot Bitcoin ETF inflows exceeding expectations, JMP suggests that this is just the beginning, with flows expected to grow significantly. They estimate that applying a multiplier of ~25X on new capital could drive a $5.5 trillion increase in Bitcoin’s market cap, leading to a price of $280,000 per Bitcoin. In a record-setting day, spot Bitcoin ETFs witnessed net inflows of 14,706 Bitcoin, valued at over $1 billion, on Tuesday, according to data from BitMEX research.
The halving
Reuters, a venerable global news agency with a rich history spanning over 170 years, recently published a captivating story on the imminent Bitcoin halving. As Bitcoin continues its ascent in price, focus shifts to the upcoming halving event and its potential influence on the cryptocurrency’s value. The halving is a programmed adjustment in Bitcoin’s blockchain technology, intended to decrease the rate of new Bitcoin creation, with a total supply capped at 21 million tokens.
This event, occurring approximately every four years, halves the rewards for miners, slowing the production of new Bitcoins. Despite assertions that Bitcoin’s scarcity adds to its value, the correlation between halvings and price increases remains uncertain, with previous instances yielding mixed results.
While some attribute Bitcoin’s recent surge to factors like the approval of Bitcoin ETFs and anticipated interest rate cuts by central banks, the speculative nature of cryptocurrency trading complicates pinpointing specific catalysts for price movements. Regulatory warnings regarding the speculative nature of Bitcoin persist, cautioning investors about the risks associated with market hype and FOMO, despite the approval of Bitcoin trading products by regulators.
Regulation
European Union
Blockworks reported on the European Banking Authority. The European Union, in alignment with the Markets in Crypto-Assets Regulation (MiCA), has made progress in regulating stablecoins. Collaborating with the European Securities and Markets Authority (ESMA), the EBA released final draft regulatory technical standards focusing on complaint protocols for stablecoin issuers.
These standards mandate issuers to disclose their complaint-handling procedures and establish a standardized process for users to submit complaints, detailing procedures for acknowledgment, assessment, and additional information requests. Following public feedback, the EBA amended the draft, incorporating provisions on data protection and complaint form updates. This final draft, alongside previous guidelines, is set to be submitted to the European Commission for endorsement by June 2024, with subsequent approval steps in the European Parliament and the Council.
On Wednesday, the European Union (EU) passed legislation concerning artificial intelligence (AI), known as the Artificial Intelligence Act. This act, endorsed by Parliament, is aimed at ensuring safety and compliance with fundamental rights while fostering innovation, marking it as the world’s inaugural binding law on AI according to EU politicians.
Investopedia reports that regulation is anticipated to be adopted by the end of the legislature and subsequently requires formal endorsement by the Council. Concurrently, the United States government has initiated AI guidelines, with President Joe Biden issuing an executive order in October to mitigate risks associated with AI technology. Regulatory efforts in both regions are motivated by concerns over the potential harm of AI-driven misinformation, particularly in the context of upcoming elections.
We hope you enjoyed our March 13, 2024 Genfinity News Recap! Come back tomorrow evening for another news summary and please leave a comment below.
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