Crypto Weekly Roundup: Key Developments to Watch
Welcome to our weekly crypto roundup! This week is expected to be eventful in the crypto space, with several key developments and coins that have the potential to influence market dynamics. Here’s what you should be on the lookout for:
Bitcoin: Monitoring Spot ETF Outflows
All eyes are on Bitcoin as investors closely monitor the movements within spot Bitcoin ETFs. After experiencing five consecutive days of net negative flows, which is unprecedented since their inception, the market is eagerly awaiting a potential turnaround.
ETFs have historically played a significant role in Bitcoin’s performance, with an average daily net inflow of $225 million. Bulls in the market are hoping to see a return to this level of inflow, especially after a recent hit piece titled “Have the inflows into Bitcoin funds dried up?” by Financial Times. The market needs to prove that the inflows haven’t indeed dried up.
Nate Geraci, a renowned ETF expert, commented on the situation, highlighting that spot Bitcoin ETFs have already taken in a net $11 billion and have $50 billion assets under management (AUM) in just over two months. He also mentioned that many RIAs (Registered Investment Advisors) and brokerage platforms haven’t even approved these ETFs for use yet.
US Inflation Data: PCE Index
The upcoming release of the Personal Consumption Expenditures (PCE) Index, scheduled for this Friday, could have a significant impact on the market. The PCE Index is the Federal Reserve’s preferred inflation measure and offers insights into inflationary pressures within the economy.
The core component of the PCE Index, which excludes food and energy, is particularly influential in shaping monetary policy decisions. The market is eagerly awaiting the data, which is expected to show a year-over-year core PCE of 2.8% and a month-over-month increase of 0.3%. This data will provide signals on future monetary policy, especially with Fed Chair Jerome Powell’s insights anticipated later in the week.
It’s worth noting that inflation data not only affects traditional finance but also has an impact on crypto markets. In recent weeks, Bitcoin and other digital assets have shown increased reactions to macroeconomic indicators.
Dogecoin: Futures Trading and ‘Doge Day’
Dogecoin is making headlines with the announcement of Coinbase International launching DOGE futures trading starting April 1. This move by Coinbase Derivatives will introduce leveraged and CFTC-regulated futures contracts for Dogecoin, Bitcoin Cash, and Litecoin.
Futures trading allows investors to speculate on the future price of DOGE without actually holding the cryptocurrency. This can increase liquidity and volatility while also providing a mechanism for price discovery and hedging against price movements. Coinbase Derivatives’ decision to offer these contracts could attract new investors and traders to Dogecoin, potentially increasing its volatility.
Aptos: Anticipation of Major Announcements
The Aptos network is generating excitement with speculation about potential partnerships with major asset managers like BlackRock or Franklin Templeton. The upcoming ‘Aptos DeFi DAYS’ event in Hong Kong from April 2 to 5 is expected to be the stage for these announcements, which could significantly impact the network’s valuation and strategic positioning in the DeFi space.
Research firm Layergg remarked that Aptos is poised for a significant RWA (Real World Asset) announcement in April, potentially involving a partnership with a major asset manager. These details are anticipated to be revealed during the ‘Aptos DeFi DAYS’ event.
Fantom: The Sonic Mainnet Launch
The Fantom Foundation is preparing to launch the Sonic mainnet, a major technological advancement that promises to enhance the blockchain’s performance and scalability. This upgrade goes beyond incremental updates and includes a comprehensive overhaul of Fantom’s infrastructure.
The key components of the Sonic upgrade are the Fantom Virtual Machine (FVM), the Carmen Database, and an optimized version of the Lachesis Consensus mechanism. These innovations aim to increase transaction speed, efficiency, and storage capabilities, addressing scalability issues that have plagued blockchain platforms. The Sonic Mainnet is scheduled for launch in spring 2024.
Ondo Finance: Riding the Crypto Wave of RWA
Ondo Finance has experienced significant price growth in the past week, with a 93.5% increase in price. This surge follows BlackRock’s announcement of a $100 million tokenized asset fund. As Real World Assets (RWA) gain traction in the crypto narrative, Ondo Finance’s association with BlackRock positions it at the forefront of this trend.
Research firm Layergg highlighted Ondo Finance as the RWA project most associated with BlackRock at this point. They also mentioned that RWA could be the next major trend in crypto and cited Ondo Finance as a key project in Bitwise’s ‘Crypto Use Case 2024’ report.
🔥 Hot Take: Exciting Week Ahead for Crypto Enthusiasts 🔥
Get ready for an exciting week in the crypto space! With Bitcoin spot ETF outflows, US inflation data, Dogecoin futures trading, Aptos’ potential announcements, Fantom’s Sonic mainnet launch, and Ondo Finance riding the wave of RWA, there’s plenty to keep an eye on.
Stay tuned for more updates on these key developments and their impact on the market. It’s going to be an eventful week for crypto enthusiasts!
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